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Letter to BS: LIC lost money in 18 out of 21 public sector bank shares

If LIC is allowed to function independently and professionally, it could emerge as the proverbial golden goose

Business Standard 

Apropos the timely editorial, “In RBI’s Court” (July 3), you have rightly driven the point that the Corporation’s (LIC) takeover of the sick is indeed a retrograde and regressive move which will boomerang on the insurance company sooner than later.

Already, has lost money in 18 out of the 21 according to a report in the columns of your newspaper on July 2. This is not at all a shock or surprise for those who have been tracking the economy for quite sometime. LIC, being a major player in the business, has been doing well, before the self-proclaimed economists of the political class started poking their nose in each and every activity and investments of the major insurer.

If is allowed to function independently and professionally, it could emerge as the proverbial golden goose.

Day-to-day tinkering of the functioning and directed investments by the sole owner of LIC, namely, the government of India would only create a bigger mess analogous to the one prevailing in public sector banks now. Privatise the ailing so that the government is not forced to recapitalise it out of public wallet.


B Venkateswaran Chennai

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First Published: Tue, July 03 2018. 21:04 IST
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