LIC sets aside Rs 25,000cr for MFs & project loans
New Delhi, Jul 8: According to a Business Standard report, the Life Insurance Corporation of India (LIC), has set aside around Rs 25,000 crore for investing in Mutual Funds (MFs) and project loans for 2009-10.
Quoting sources, the report said that the country's largest insurer will be investing about Rs 20,000 crore in Mutual Funds which is 8 pc higher than the Rs 18,500 crore of last year. This money is likely to be parked in short-term liquid funds and FMPs, the sources said.
Apart from this, the company will also be disbursing project loans worth Rs 3,000-5,000 crore which would be at least 50 per cent more than last year"s Rs 2,100 crore.
“Project loans give returns of 13-14 per cent as compared with about 12 per cent returns from non-convertible debentures. This year, demand for project and corporate loans is poised to be more than last year and hence the returns will be more," LIC executive was quoted as saying.