15% Hike in Investments shown by LIC

In order to maintain a good pace in premium growth, LIC is planning to increase its investment by 15%. D.K.Mehrotra has reported that the company will put as much as Rs 1,15,000 crore into stocks and bonds this fiscal. He also said that presently the insurer’s investments exceed Rs 600,000 crore.

This increase in investment might prove very helpful for the Indian economy to meet rising demand for funds to fuel the second fastest growth rate among major economies globally. The country is estimated to need as much as 320$ billion by 2012 to build roads, ports and power plants.

Premium income more than 2006-07 giving LIC a 74.2% market share. The company plans to keep the proportion of equity investments at 10%. It owns 14.8% of Maruti Udyog, after buying 13 million, after buying 13 million shares last month.