Life Insurance Corporation (LIC) has an exposure of Rs 11,000 crore to Dewan Housing Finance (DHFL), Reliance Home Finance, Reliance Capital and Sintex Industries in the first half of FY20 after their bonds were marked as ‘default’, The Economic Times reported.
Rating agencies have marked the bonds of these companies as ‘default’ after they defaulted on payments.
DHFL recently became the first non-banking finance company (NBFC) to be taken to the bankruptcy court.
Earlier in January, bondholders initiated insolvency proceedings against Reliance Home Finance, a subsidiary of Reliance Capital.
LIC has made a provision worth Rs 6,500 crore on DHFL, after the commercial papers were downgraded in June last year.
It marked its exposure of Rs 4,000 crore to Reliance Capital as a non-performing asset (NPA) in September 2019.
The insurer has previously had an exposure to companies that are facing insolvency proceedings, such as Alok Industries, ABG Shipyard, Amtek Auto, Mandhana Industries, Jaypee Infratech, Jyoti Structures, Rainbow Papers and Orchid Pharma.
In the first half of FY20, LIC’s gross NPAs stood at 6.10 percent.
LIC is India’s largest domestic institutional investor, with assets under management (AUM) worth Rs 30 lakh crore, the report stated.Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
- GPB Capital Investor Update September 2019
- Victory Capital Reports August 31, 2019 Assets Under Management
- SROCC AUTHORS AND ICELAND PM DISCUSS CLIMATE REPORT
- Elite Capital International
- NOVAGOLD Reports Third Quarter Results
- GPB Capital
- Shah Capital Asks Gulfport to Reduce 2020 Capex by Over 25%
- Shineco, Inc. Reports Fiscal Year 2019 Financial Results
- Motif Bio and Hercules Capital Amend Loan and Security Agreement
- Stifel Completes Acquisition of B&F Capital Markets, Inc.