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Trichy, Tamil Nadu, India
Working as an Assistant in LIC of India, Rockfort BO, Trichy, TN. Having a strong belief that LIC's welfare is our welfare and always trying to work towards that. I'm a member of AIIEA.

Saturday, June 21, 2014

Who wants to privatise LIC?

Finance Minister sought opinions from several sectors. While asking about Banks, Vice Chairman of Kotak Mahindra Bank adviced Government to sell LIC into shares to mobilise funds.
How will a man react, if he is sane and capable of thinking logically?
"I asked about banks, not about insurance industry or Government's needs of funds" might be the right answer.
"You take care of your institution - Kotak Mahindra Bank, we can very well take care of the Government" would have been the reply, if the FM had some self respect.
"First you administer properly your insurance arm - Kotak Mahindra Old Mutual Life Insurance Co. When you become better than LIC, come and advice us", would have been the apt reply, if he had some conscious.

But, he had sought opinion from LIC whether it can be listed.
What does it mean?

Allahabad High Court ordered IRDA to scrutinise all policies of SBI Life and if required wind up the company.
If LIC chairman or somebody else asks the Government to wind up SBI Life, will the Government write to SBI Life?

But, the Government is seriously seeking opinion from LIC, whether it can be listed.
That means...
It is the intention of the Government to privatise LIC. They knew how will LICians react. So, they are creating an illusion, as if, somebody is suggesting something and they are considering.
LIC Chairman aptly replied.
We also need to reply in the form of movements involving general public, against the Government, when it tries to proceed.
Be prepared...

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LIC Chairman replies to Finance Minister
Source: Indian Express
State-run Life Insurance Corporation (LIC) is against diluting its present character and listing the entity on the stock exchanges and has
conveyed it to finance minister Arun Jaitley.

A senior official, who is on the board of LIC said, “I don’t see any reason for listing of its shares. Why should LIC be listed? It makes sense for the government to retain its current character.”

The issue of listing of LIC had come up during a meeting of financial sector chiefs with Jaitley last week. Kotak Mahindra group chief Uday Kotak had suggested that the government should look at listing LIC as it can generate a lot of revenue. Kotak had argued that the kind of money the government can raise by listing LIC is significant and it can fund needs of public sector banks as well as fiscal deficit.

Jaitley then sought LIC chairman SK Roy’s opinion on the issue. “While Kotak has many reasons for listing LIC, I don’t have any reason to list the corporation,” Roy reportedly told the finance minister.
Kotak persisted with the listing issue and said the Centre can really reap a huge windfall by listing the corporation which is valued more than Rs 10 lakh crore. However, Roy said LIC’s asset size exceeds Rs 18 lakh crore. “If government wants to make Rs 18 lakh crore into a Rs 10 lakh crore organisation, it can do that,” Roy said.

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