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BUSINESS EYE FEBRUARY 17, 2023 | The Indian Eye 28

LIC profit jumps even as

biggest insurer refuses to reduce

exposure to Adani

LIC chairman M R Kumar says that he will take a view on the company’s investment in
Adani Group two to three years from now

OUR BUREAU

Mumbai/New Delhi
ublic sector insurer LIC on
Thursday reported manifold
Pjump in net income at Rs
8,334.2 crore during the three months
ended December 2022 as against Rs
235 crore a year ago. The Life In-
surance Corporation (LIC) earned
Rs 1,11,787.6 crore in net premium
income during the reporting quarter
as against Rs 97,620.34 crore in the
year-ago period, it said in a regulato-
ry filing.
The numbers are strictly not
comparable as the insurer was not
a publicly traded company earlier.
LIC’s income from investments rose
to Rs 84,889 crore from Rs 76,574.24
crore a year ago, the filing said. Its
investments into the Adani Group
have been under tremendous criti-
cism even though the value of the in-
vestment of close to Rs 36,000 crore
are still in the green despite those LIC’s income from investments rose to Rs 84,889 crore from Rs 76,574.24 crore a year ago (File photo)
shares losing almost 60 per cent of
their value since January 25.
LIC has invested over Rs 36,000 file and what they are planning to do interview, referring to a recent state-
The Life Insurance Corporation crore in Adani Group companies. A and how are they planning to man- ment by LIC.
week after the Hindenburg report
age the whole thing,” the LIC chair-
There were concerns that the
(LIC) has not reduced any ex- and subsequent market rout, LIC in person said. continued fall in Adani Group stocks
Following the report by Hinden-
posure in Adani Group but it a statement said the total purchase burg, the shares of Adani firms came may impact LIC’s investors base.
But senior Congress leader Jai-
value of equity, purchased over the
wants the embattled conglom- last many years, under all the Adani under heavy selling pressure, wiping ram Ramesh on Monday posed three
erate to “throw some light on Group companies was over Rs off thousands of crore in a matter of fresh questions to the BJP-led cen-
36,000 crore and the market value as
few days.
tral government amid the Hinden-
what is happening in the mar- on January 27 was Rs 56,142 crore. Life Insurance Corporation of burg-Adani row. He asked why the
On Thursday, LIC chairman M R
ket”, the state-owned insurer’s Kumar said that he will take a view on India (LIC) invests in equities tak- LIC made such a huge allocation to
the Adani Group when even private
ing into account the inherent risk as
chairman said on Thursday. the company’s investment in Adani per its risk management framework, fund managers had steered clear of it.
Group two to three years from now. said Tuhin Kant Pandey, secretary at “Is it not the duty of the govern-
LIC was recently under fire for He also said that the state-run insur- the Department of Investment and ment to ensure that vital public sector
investing in Adani Group companies, er would be calling the management Public Asset Management (DIPAM). financial institutions are more con-
whose shares have seen massive ero- of Adani Group to understand what “LIC has already made it clear and servative in their investments than
sion in market cap following a spate was happening in the market, “if they through a public notice of what are their private sector counterparts? Or
of allegations made in a report by (Adani) can throw some light on it”. their level of investments and what is was this another case of your ‘Mann
US-based short seller Hindenburg “We will be calling them some- value is on a particular date of those Ki Banking’ to benefit your cronies?”
Research. time just to know the business pro- investments,” he said in an exclusive Ramesh wrote.

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