Its exposure of Rs 4,000 crore to Reliance Capital turned NPA for lenders in September 2019.LIC had in the past taken exposure to many companies facing insolvency proceedings. These included investments in Reliance Capital from pension and life funds.LIC’s gross NPAs reduced to 6.15 per cent in FY19 from 6.23 per cent. It made higher provisions for bad loans, leading to a decline in its net NPAs – to 0.27 per cent from 1.82 per cent. NPA as on March 31, 2019 was Rs 24,777 crore. These borrowers were among the first to be referred to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code.

Source: Economic Times January 24, 2020 02:27 UTC