Finance Minister Nirmala Sitharam when she was presenting the Budget on the floor of the Parliament in February 1, everyone get socked that government will sell its share in LIC through Initial Public Offering (IPO). This IPO is the biggest IPO in the history of the country India. Because of this decision there is increase in debate of financial sectors. In Parliament there was decision taken that LIC can not be disinvested in any case. The market condition is not very good and economy is also slow down.
The disinvestment target for the next fiscal Rs 2.10 trillion has been increased. LIC is majority shareholder which is used to fetch Rs 90, 000 crore. The response of government has reached in under the segment in the current financial segment. The government has received 18,000 crore through the ongoing disinvestment programme.
LIC has reported gross Non performing Assets (NPAs) around 30,000 crore on 30 Septemver 2019. The gross NPAs at 6.10 per cent in September 2019 have almost doubled over the last five years. LIC always help some percent gross NPAs. All India LIC employees federation has opposed the governments to sell some parts in LIC.