Volume : VII, Issue : VIII, August - 2018
IMPACT OF NPA ON THE PROFITABILITY OF LIFE INSURANCE CORPORATION
Salini R Chandran, Dr. K. Alamelu
Abstract :
A Non–performing asset (NPA) is defined as a credit facility in respect of which the interest and/or instalment of principal has remained ‘past due’ for a specified period of time. Apart from banks, the leading insurance company LIC is also facing the problem of NPA. The regulatory bodies, Government and media are all busy with discussing the bad loans of commercial banks; no such discussion seems to be happening around the badloans of LIC. Hence the present paper focuses on the impact of Non– Performing Assets on the profitability of Life Insurance Corporation. The present study has two objectives. The first objective is to identify the trends in the NPA of LIC and secondly to examine the impact of NPA on the profitability of LIC. The data needed for the study has been collected from the annual reports of LIC from 2011–12 to 2016–17. The analysis found that the GNPA of LIC has grown up dramatically over the last sixyears. The NPA figures are close to those figures reported by a few banks like SBI (5.1%), ICICI bank (4.7%), Syndicate bank (4.6%) and Vijaya bank (4.32%). The NPA level of LIC had a significant impact on its profitability also. The media, government etc are nowadays focusing on the NPA of banks only and no such attention is given to LIC and other insurance companies, hence there should be proper focus on the growing NPA of LIC and proper measures should be taken on an emergency basis to tackle the situation
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DOI : https://www.doi.org/10.36106/paripex
Cite This Article:
Salini R Chandran, Dr. K. Alamelu, IMPACT OF NPA ON THE PROFITABILITY OF LIFE INSURANCE CORPORATION, PARIPEX‾INDIAN JOURNAL OF RESEARCH : Volume-7 | Issue-8 | August-2018
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References :
Salini R Chandran, Dr. K. Alamelu, IMPACT OF NPA ON THE PROFITABILITY OF LIFE INSURANCE CORPORATION, PARIPEX‾INDIAN JOURNAL OF RESEARCH : Volume-7 | Issue-8 | August-2018