LIC's NPAs in debt portfolio reduce, persistency ratio improves in FY21

Ahead of its initial public offering, state-owned Life Insurance Corporation (LIC) has seen a reduction in non-performing assets (NPAs) in the debt portfolio and has improved its persistency ratio, both in the 13th month as well as in the 61st month.

In FY21, gross NPAs of LIC reduced by 39 basis points (bps) to 7.78 per cent from 8.17 per cent a year ago. On the other hand, the net NPAs of the insurer reduced by 74 bps to 0.05 per cent in FY21, indicating that the insurer has provided heavily to reduce its net NPAs to clean up