SBI Caps To Advise LIC On Investments

Mumbai, September 16: | Updated: Sep 17 2003, 05:30am hrs
For the first time, the Life Insurance Corporation (LIC) is roping in an outside body, SBI Caps, the investment banking wing of the State Bank of India to undertake some investment related activities through the organisation. LIC with a total investible amount of Rs 70,000 crore during the year is targetting over Rs 2,500 crore of profit from its secondary market operation during 2003-04.

In 2002-03, the Corporation had posted a profit of around Rs 1,500 crore out of the secondary market operation including trading in gilts. The ongoing fall in the interest rate in the governmemt securities has generated an appreciation amounting to Rs 50,000 crore for the life insurance behemoth.

During 2003-04, the life insurance behemoth will invest around Rs 70,000 crore out of which Rs 35,000 crore will be invested in G-sec. Some eight to nine per cent of the Rs 70,000 crore will be invested in the equities.