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<ul><li>The Indian life insurer stood fourth on the list by S&amp;P Global based on reserves.</li><li><keyword id="6367143" type="General" weightage="100" keywordseo="lic" source="Orion">LIC</keyword> has reserves of over $500 billion, as per the report.</li><li>Sector watchers say that Asia is the next major market for growth for <keyword id="6406875" type="General" weightage="60" keywordseo="life-insurance" source="Orion">life insurance</keyword> companies.</li></ul> Public sector life insurance behemoth, Life Insurance Corporation of India (LIC) is the world’s fourth largest insurer based on reserves, as per a report released by S&amp;P Global Market Intelligence. LIC follows Allianz SE, China Life Insurance and Nippon Life Insurance on the list of top largest life insurers. LIC has reserves of $500 billion while Nippon’s reading is at $536 billion. China Life Insurance has $616 billion, and Allianz SE has $750 billion in reserves. Asia accounts for 17 spots on the list of top global life insurers, making it the region with the second-highest number. Mainland China and Japan shared the top spot in Asia with five companies headquartered there. European companies from six countries dominated the list of top 50 global life insurers ranked by life and accident &amp; health reserves, taking 21 spots. Karl Hersch, Deloitte's US insurance leader, expects the life industry to experience tempered levels of growth in the US and Europe in light of macroeconomic factors while seeing more opportunities in emerging markets. "The growth I'm expecting to see is more in the emerging markets where you already have a higher underserved population and there's more opportunity," Hersch said. Rob Sims, managing director and partner with Boston Consulting Group's insurance practice, is seeing the rise of a more digitally-led experience in Asia than anywhere else in the world. <div type="image" title="Life-insurers-Map_2023-SPGlobal" msid="105758459" hostid="261" sizebytes="176172" caption="&amp;lt;p&amp;gt;Image courtesy: S&amp;amp;amp;P Global &amp;lt;/p&amp;gt;"></div> An area of concern for the life insurance industry, as pointed in the report, is the difficulty to adapt to large-scale transfer of wealth from one generation to the next. "There's not a single area in the world that isn't going to be experiencing that wealth transfer. The life insurance industry is not yet ready to address this challenge as it does not have the right products and technology," said Samantha Chow, global leader for the life, annuities and benefits sector at Capgemini. The LIC stock has been on the path of recovery having rallied 20% in the past six months. The past month has seen the stock gain as much as 16% in value. LIC Chairman <keyword id="7568398" type="General" weightage="20" keywordseo="siddhartha-mohanty" source="Orion">Siddhartha Mohanty</keyword> recently confirmed the imminent establishment of a branch in GIFT City. Currently, LIC has a presence in 14 countries and the decision to establish an office in GIFT City is expected to catalyze further growth in LIC's foreign operations, providing the insurer with an international opportunity.

With $500 billion in reserves, LIC is the world’s fourth largest insurer

<ul><li>The <keyword id="6367143" type="General" weightage="20" keywordseo="lic" source="Orion">LIC</keyword> management will soon meet the top management of the crisis-ridden <keyword id="6367820" type="General" weightage="80" keywordseo="adani-group" source="Orion">Adani Group</keyword>.</li><li>LIC's investment into <keyword id="76451" type="General" weightage="100" keywordseo="adani" source="Orion">Adani</keyword> group firms' stock has come under criticism by the opposition parties as well as investors</li><li>We are soon going to call them to meet us and explain. We want to understand what is happening in the market and in the group, said LIC chairman.</li></ul>The LIC management will soon meet the top management of the crisis-ridden Adani Group and seek clarification on the crisis being faced by the diversified conglomerate, chairman M R Kumar said here on Thursday. LIC's investment into Adani group firms' stock has come under criticism by the opposition parties as well as investors after US-based short-seller Hindenburg Research made a litany of allegations against the Gautam Adani-led group, saying its companies manage and manipulate share prices, run offshore shell companies for round-tripping and lacking in corporate governance practices. "Though our investor team has already sought clarifications from the Adanis, our top management could not contact them yet as we have been busy preparing the results. We are soon going to call them to meet us and explain. We want to understand what is happening in the market and in the group," the chairman told reporters at the earnings conference on Thursday. "We'll be calling them in sometime soon to know how are they managing the whole crisis," Kumar added. Kumar, however, refused to give a timeline of the meeting between LIC and Adani group officials. LIC, which is the nation's largest institutional investor, is the second largest shareholder in most of the listed Adani group companies, with a cumulative investment of Rs 36,474.78 crore as of January 27, which in percentage terms is 4.23 per cent of the total public holding in those companies. But for LIC's Rs 44.76 lakh crore investment asset under management, this is only 0.97 per cent. As of January 27, this investment was valued at over Rs 56,000 crore, LIC had said on January 30, but since then these shares have further lost -- cumulatively about USD 100 billion or about 60 per cent of their January 24 market value. When asked, the chairman categorically said, "Our investments are still in the green and we have not made any provisions either for equity, which is the vast majority or for the debt. Our equity holding in the group is 4.23 per cent of the total public holding of those firms. But from our total market investment of Rs 44.76 lakh crore, this is only 0.97 per cent." He said the Irdai (Insurance Regulatory and Development Authority of India) norms on investment caps it at 15 per cent of a company's equity, but "we have some exception wherein we hold more than 30 per cent in some companies". "Why should we be making provision when they are in the green. To some of the group companies (ACC and <keyword id="105382" type="General" weightage="50" keywordseo="ambuja-cements" source="Orion">Ambuja Cements</keyword>) our investments go back to more than two decades," he said. On January 30, LIC issued a public statement saying: "Our total holding in the Adani group companies under equity and debt a on date is Rs 36,474.78 crore. This was Rs 35,917.31 crore as of December 31, 2022. Total purchase value of these equities of the group companies, bought over the past many years, is Rs 30,127 crore and the market value for the same at close of market hours on January 27, 2023 was Rs 56,142 crore." LIC has exposure to all the 10 listed Adani group companies. However, it did not disclose about its exposure on an individual company basis. Even after the Hindenburg report, LIC invested about Rs 300 crore in buying 9,15,748 shares in Adani Enterprises' Rs 20,000-crore follow-on public offer as an anchor investor. Kumar said, the book value of its Rs 44.75 lakh crore market asset under management is only Rs 6.87 lakh crore, and according to the same book value its exposure to the Adani group companies is only 4.23 per cent. Since the publication of the Hindenburg report on January 24, three days before the launch of the group's flagship Adani Enterprises' Rs 20,000-crore follow-on public offer (FPO), the value of the group companies' stocks have lost more than USD 100 billion or about 60 per cent from their January 24 value. The FPO was fully subscribed but called off a day later by the management. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/adani-group-stocks-snap-2-day-rally-tank-in-morning-trade/articleshow/97758799.cms">Adani group stocks snap 2-day winning streak to trade in the red</a> <a href="https://www.businessinsider.in/business/startups/news/startup-founders-focus-on-profitability-hope-for-higher-valuations-innoven-capital-report/articleshow/97769944.cms">Startup founders focus on profitability, hope for higher valuations: InnoVen Capital report</a> <a href="https://www.businessinsider.in/business/news/trais-move-to-display-callers-names-endangers-privacy-imposes-costs-iamai/articleshow/97777301.cms">TRAI's move to display callers' names endangers privacy, imposes costs says industry body IAMAI</a>

Will meet Adani Group top management soon says LIC chairman

<ul><li>92-year-old <keyword id="1860467" type="General" weightage="20" keywordseo="Lachman-Das-Mittal" source="Orion">Lachman Das Mittal</keyword> is <keyword id="3658" type="General" weightage="20" keywordseo="India" source="Orion">India</keyword>’s oldest billionaire with a net worth of $2.5 billion as per Forbes. </li><li>Mittal is the founder and chairman of <keyword id="813" type="General" weightage="80" keywordseo="sonalika" source="Orion">Sonalika</keyword> Group, India's third-largest tractor maker by market share and India’s largest tractor export brand. </li><li>The billionaire is a former LIC employee who holds a master’s degree in arts in English and Urdu languages.</li></ul>The founder of Sonalika Group, 92-year-old Lachman Das Mittal is now India’s oldest billionaire. As per the Forbes 2023 list, 99-year-old <a href="https://www.businessinsider.in/thelife/personalities/news/the-life-and-times-of-keshub-mahindra-indias-oldest-billionaire/slidelist/99428483.cms">Keshub</a> Mahindra, the former chairman of Mahindra &amp; Mahindra group was the oldest billionaire. Unfortunately, Mahindra passed away on April 12. India now has four nonagenarians among the country’s 169 billionaires, as per the list. Mittal is the founder chairman of Sonalika Group, India's third-largest tractor maker by market share. As per <a href="https://www.forbes.com/profile/lachhman-das-mittal/?list=billionaires&amp;sh=3708547e32d5">Forbes</a>, he has a net worth of $2.5 billion. He first entered the Forbes Billionaire list in 2013. <cmsannotation type="cmsannotation" annotationid="After his retirement…" comment="subhead2" text="After his retirement…">After his retirement…</cmsannotation> The 92-year-old started his business a little over three decades ago at the age of 60, after retiring from the state-owned Life Insurance Corporation (LIC) as a deputy zonal manager. The billionaire shows up to the office every day, even after his sons and grandsons look over the company’s operations. “We are not just sitting in some air-conditioned room and running the business…I and my boys know every inch of a tractor,” <a href="https://www.forbesindia.com/article/india-rich-list-2015/lachhman-das-mittal-tractor-master/41355/1">shared </a>the patriarch with Forbes. Born in August 1931 in Hoshiarpur, Mittal’s professional journey started as a LIC agent. After obtaining a Master’s in Arts degree in English and Urdu language from Punjab University, Mittal started working with LIC in 1955. Mittal, who obtained a gold medal during his post-graduation, was diligent at work, gaining knowledge about the different types of investments. Gradually, he started saving to pay off past debts and for securing his future. Though he wasn’t born with money, he managed to save enough to start a side venture in 1969 — building farm machinery under the name Sonalika. Unfortunately, the venture left him bankrupt. In an attempt to offset his losses, he tried to obtain a Maruti dealership but was rejected. <cmsannotation type="cmsannotation" annotationid="Poetry on wheels" comment="subhead2" text="Poetry on wheels">Poetry on wheels</cmsannotation> Undeterred, he forged on. Inspired by Japanese machines that separated hay and wheat, he built threshers, gaining <a href="https://www.news18.com/business/meet-lachhman-das-mittal-who-launched-sonalika-group-at-the-age-of-60-7510003.html">nationwide acclaim </a>for his product in just eight years. After <a href="https://www.forbesindia.com/article/india-rich-list-2015/lachhman-das-mittal-tractor-master/41355/1">retiring from his job in 1990</a>, he spent years writing and reading poetry in classical Urdu and working on Sonalika to build a tractor. The idea to build tractors actually came to him through his customers, who were eager to see a tractor from Sonalika. To carry out the requisite research and study to launch tractors, Mittal needed financing. Consequently, he secured a loan of ₹22 crore from his trusted dealers. Six years after he retired, in 1996, Sonalika Tractors was incorporated. Today, it’s the country’s largest exporter of tractors, associated with more than 14 lakh customers across 140 countries around the world. Mittal, who’s a fan of Bollywood movies and a coin collector, said while recounting his journey with Business Standard, "Once I applied for a dealership of Maruti Udyog but was rejected. Today, I give out dealerships." <cmsannotation type="cmsannotation" annotationid="Building his pot of gold" comment="subhead2" text="Building his pot of gold">Building his pot of gold</cmsannotation> Sonalika, which means ‘lines of gold’ in Hindi, is named after a popular line of wheat seeds that fuelled the Green Revolution in India, leading to greater production. The Sonalika Tractors were definitely Mittal’s pot of gold. Japanese firm Yanmar has a 30% stake in Sonalika Tractors. Today, the brand has an employee strength of over 10,000 and was <a href="https://www.sonalika.com/about-us.html">chosen </a>by the Indian government to contribute towards the Niti-Aayog project to double the farmer’s income in the country. Sonalika has been clocking over 1 lakh tractor sales consistently for six years (FY18 – FY23). It also recorded the highest annual growth of 41.6% in the domestic market during the pandemic (FY21) — significantly higher than the overall industry growth of 26.7%. The company has five manufacturing facilities across the globe, including the <a href="https://www.youtube.com/watch?v=rX-tPTIwVok&amp;ab_channel=ETAuto">world’s largest tractor-manufacturing facility </a>at Hoshiarpur in Punjab. Mittal’s elder son Amrit Sagar is the company’s vice-chairman, while his third son, Deepak is the managing director. Mittal’s second son is a doctor in New York. Interestingly, his daughter, Usha Sangawan, is LIC’s first female managing director. SEE ALSO:

India’s oldest billionaire started his business after retiring from LIC

Asian life insurance giant, the <keyword id="6368369" type="General" weightage="50" keywordseo="life-insurance-corporation-of-india" source="Orion">Life Insurance Corporation of India</keyword> on Thursday said its Indian Embedded Value (<keyword id="3408788" type="General" weightage="80" keywordseo="iev" source="Orion">IEV</keyword>) as on March 31, 2022 was Rs 541,942 crore. The embedded value in the case of a life insurance company is the current value of the company's future profits. According to <keyword id="6367143" type="General" weightage="100" keywordseo="lic" source="Orion">LIC</keyword> officials, the IEV has been determined at Rs 541,492 crore (Rs 5,414.9 billion) as compared to Rs 95,605 crore (Rs 956 billion) as on March 31, 2021 and Rs 539,686 crore (Rs 5,397 billion) as on September 30, 2021. Officials said the volatility in the stock market has impacted the LIC's investment market value to the tune of Rs 40,000 crore which, in turn, had its impact on IEV. According to the officials, the Rs 40,000 crore reduction in the market value of its investment was in both equity and debt segments of the market. The IEV as of September 30, 2021 was significantly higher than the IEV of March 2021 due to the bifurcation of fund that was carried out by LIC pursuant to changes in the <keyword id="7922368" type="General" weightage="20" keywordseo="lic-act" source="Orion">LIC Act</keyword> during the FY 2021-22. The LIC Board on January 8, 2022 had approved bifurcation of the single fund into separate Participating and Non-Participating funds and the effect of such bifurcation has been reflected in the Financials as at March 31, 2022. The life insurer had engaged <keyword id="14454797" type="General" weightage="50" keywordseo="milliman-advisors-llp" source="Orion">Milliman Advisors LLP</keyword> for arriving at the embedded value. On Thursday the LIC's Board accepted <keyword id="1417479" type="General" weightage="50" keywordseo="milliman" source="Orion">Milliman</keyword>'s IEV report. LIC Chairman M.R. Kumar said the valuation of IEV took some time to get completed. On the LIC's decision to publish the embedded value once in six months - in March and September - Kumar said it is in line with the industry practice. Further, determining the embedded value of a life insurance company of LIC size with about 28 crore policies is a time consuming and elaborate process, officials added. The Value of New Business (VNB) for year ended March 31, 2022 has been determined to be Rs 7,619 crore (Rs 76.19 billion) as compared to Rs 4,167 crore (Rs 41.67 billion) for the year ended March 31, 2021. Also, the VNB for the six-month period ended September 30, 2021 was Rs 1,583 crore (Rs 15.83 billion). The VNB margin, for the year ended March 31, 2022 is 15.1 per cent as compared to 9.9 per cent for the year ended March 31, 2021. Officials said the VNB margin went up owing to change in business mix like the group business going up to 29 per cent from 24 per cent. The ROEV (Return on embedded value) for March 21, 2022 is 11.9 per cent as compared to 36.9 per cent for March 2021. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/cryptocurrency/news/iamai-dissolves-blockchain-and-crypto-assets-council-to-no-longer-represent-crypto-exchanges/articleshow/92880182.cms">IAMAI dissolves Blockchain and Crypto Assets Council, to no longer represent crypto exchanges</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/chitra-ramakrishna-arrested-by-ed-and-sent-to-a-four-day-remand/articleshow/92879523.cms">Chitra Ramakrishna arrested by ED and sent to a four-day remand</a>

LIC's embedded value is estimated at Rs 5.4 lakh crore

<ul><li>The <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> has proposed 15% capital adequacy as a benchmark and LIC Housing Finance is short of that.</li><li>The new restrictions proposed by the regulator will also limit the amount of dividend paid by other non-banking finance companies.</li><li>Check out the latest news and updates on <a href="https://www.businessinsider.in/" data-type="tilCustomLink" target="_blank">Business Insider</a>. </li></ul>The Reserve Bank of India issued a draft circular that proposed restrictions on non-banking finance companies declaring dividends. And, according to analysis by Emkay, only two companies, LIC Housing Finance and M&amp;M Financial Services, in that space do not meet the conditions, under current circumstances, for paying dividends set by the central bank. However, M&amp;M Finance has clarified that it would be eligible. Not surprisingly, it took a toll on the two stocks. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Stock </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Losses on Dec 10 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">LIC Housing Finance </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.11% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mahindra and Mahindra Financial Services </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.35% </td></tr></tbody></table> The RBI has proposed a capital to risk weighted assets ratio (CRAR) of 15%. Simply put, CRAR is a measure of how much capital the company has compared to the riskiness of its loans. If the borrower fails to repay, the capital would be the cushion to absorb the loss. And LIC Housing Finance fails to meet the RBI threshold on this count. The capital adequacy ratio has been 14.4%% for the company in the last two financial years and 14.5% for the first half of the current one, the report said. The way out of this is that the company can raise money from the market to boost this figure past the 15% mark, and then, shareholders can expect a dividend. M&amp;M Financial, on the other hand, doesn’t make the cut on RBI’s benchmark for paying dividend because the amount of bad loans on its books is a little more than what the regulator likes. The circular has set the threshold at 4% while M&amp;M Financial has a net NPA (non-performing assets) of 4.7%. However, if the firm is able to recover enough loans by March 2021 to bring the metric below 4%, dividend may be back on the table. In the year before COVID-struck, the one ending in March 2019, the company paid a handsome 25.7% dividend to shareholders. On the other hand, in a statement to Business Insider, M&amp;M Financial stated “As per the circular, RBI has proposed a twin matrix of CRAR and NNPA and accordingly specified 4 categories based on a combination of both. CRAR of MMFSL has been above 18% for the last 3 years. Hence, the company will fall in Category B as per the matrix. Secondly, MMFSL’s net NPA at the end of September 30 was 4.7%, based on which our permissible dividend payout ratio is ‘up to 20%’,” the company said. This is not the first time the spotlight has fallen on M&amp;M Finance’s chunk of bad loans. The pandemic has only increased the risk of defaults and therefore the company too has been aggressively setting aside money to cover the losses if they occur. “As we progress, the next six months, which is normally the good six months, we would not see a decline in the gross NPA, and we will maintain our stance on aggressive provisions… if we start seeing things are not improving as we think, then we may take higher provision, whichever is necessary,” Vice Chairman and Managing Director Ramesh Iyer told Business Insider <a href="https://www.businessinsider.in/stock-market/news/mahindra-and-mahindra-finance-managing-director-gets-candid-about-the-rights-issue/articleshow/77212386.cms" data-type="tilCustomLink" target="_blank">in an exclusive chat in July 2020</a>. Here’s an excerpt of that interview: <div type="Youtube" id="Qu9KvcNr1iM" title="M&amp;M Financial MD explains how the company is preparing for the worst and hoping for the best" thumbUrl="https://i.ytimg.com/vi/Qu9KvcNr1iM/mqdefault.jpg"></div> For other NBFCs that are eligible to pay dividend, there may be a cap on how much they can dole out based on the benchmarks set by the RBI. These are the likely limits on dividends given the current financial health of the following firms. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Dividend limit </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bajaj Finance </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Up to 45% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cholamandalam Finance </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Up to 30% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Up to 45% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">L&amp;T Finance Holdings </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Up to 25 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Magma Fincorp </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Up to 25% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Shriram City Union Finance </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Up to 25% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Shriram Transport Finance </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Up to 25% </td></tr></tbody></table>Source: Emkay SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/the-33-billion-itc-one-of-indias-most-trolled-stock-in-recent-weeks-seems-to-have-turned-a-corner/articleshow/79641456.cms">The $33 billion ITC, one of India’s most-trolled stock in recent weeks, seems to have turned a corner</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/the-33-billion-itc-one-of-indias-most-trolled-stock-in-recent-weeks-seems-to-have-turned-a-corner/articleshow/79641456.cms"></a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/icertis-helps-google-microsoft-and-apple-manage-their-contracts-is-hiring-for-techies-and-people-in-sales/articleshow/79640659.cms">EXCLUSIVE: This Indian unicorn helping Google, Microsoft and Apple manage their contracts is hiring⁠— it needs techies as well as people in sales</a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/icertis-helps-google-microsoft-and-apple-manage-their-contracts-is-hiring-for-techies-and-people-in-sales/articleshow/79640659.cms"></a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/tata-group-company-voltas-is-telling-analysts-that-it-may-hike-ac-prices-by-3-4-to-cover-rising-input-costs/articleshow/79624340.cms">Voltas is telling analysts that it may hike AC prices by 3-4% to cover rising input costs</a>

How RBI's proposed restrictions may affect your dividends

Mumbai, Feb 7 () Life Insurance Corporation is keen to unlock value in IDBI Bank in the run up to the insurance behemoth's IPO, which is likely to happen in FY21, its Chairman M R Kumar said on Friday. Presenting the Budget, Finance Minister Nirmala Sithraman had said the government would sell a part of its 100 percent holding in LIC through an IPO in the next fiscal year. Later, Finance Secretary Rajiv Kumar said the government could divest up to 10 per cent in LIC, which has an enterprise value of Rs 36 lakh crore. The government aims to garner Rs 90,000 crore from the listing of LIC and stake dilution in IDBI Bank in the next fiscal out of the total disinvestment target of Rs 2.10 lakh crore. In January 2019, LIC picked up 51 per cent stake in IDBI Bank, making it the majority shareholder of the lender. The Irdai regulations bar an insurance company from holding more than 15 per cent in any listed entity. However, Irdai has given some exemption to LIC in regard to its holding in IDBI Bank. LIC Chairman Kumar said though Irdai has not fixed any timeline for LIC to reduce its stake in IDBI Bank, the Reserve Bank has given a 12-year timeframe. "We would not want to wait that long, especially when we are also going to be listed, but we have to find some ways to unlock value in IDBI Bank," Kumar told reporters here on Friday. He said once the bank comes out of the lending restrictions imposed by the RBI under the Prompt Corrective Action (PCA) framework and becomes profitable, the bank would be able to attract investors. "Once they come out of the PCA and start lending again, I believe that their profitability will go up substantially and also attract investors," he said. IDBI Bank, which is under PCA framework since May 2017, had met RBI in January to seek lifting of the operational restrictions, had earlier reported. The lender had made a presentation to the RBI on its improved financial position. The government holds 47.11 per cent stake in IDBI Bank, while 51 percent is with LIC. This leaves practically nothing for investors, as its floating shares are only 3 per cent of the paid-up equity. Sitharaman had said the government would want to tap the retail investor segment to sell its stake completely. Kumar said the stake sale by the government in IDBI Bank will help bring in more retail investors. "Once the stake sale happens, people will show more interest in the scrip, because as of now with 51 per cent with us and over 47 (per cent) with the government, there is hardly any free float to give value to shareholders," Kumar said. When asked about the IPO's timing, Kumar refused to give any timeline. "Yes, the finance secretary was on record saying listing will happen in the H2 of FY21. We have to work it out. I don't know how long it takes for the very simple reason that we are doing for the first time," he said. Finance Secretary Rajiv Kumar had on Sunday said the LIC IPO may be done in the second half of FY21. The LIC chairman said the listing would need some legislative changes in the LIC Act. "Basic amendment to the LIC Act would be required," he said. Explaining further, the corporation's appointed actuary Dinesh Pant said, "LIC (Act) has got a Section 24 where the entire fund of the corporation is a controlled fund which is under one fund. So how will be now be bifurcated. There is Section 28 about dividend distribution and so all those things have to be taken care of." He also said it needs to be seen how Section 37,which talks about the sovereign guarantee, is amended. Spelling out the priorities in the run up to listing, he said the focus would be on creating right perception in the market and to work on the process of valuation. He also said the policyholders and employees will not have any impact due to the listing. Earlier this week, nearly 1 lakh employees of the corporation staged an hour-long walkout against the IPO plans. HV BEN ABMABM

Looking to unlock value in IDBI Bank: LIC chief

Mumbai, Mar 31 () Life Insurance Corporation of India (LIC) on Tuesday said it has contributed Rs 105 crore towards the PM-CARES Fund to help the government fight the coronavirus pandemic. Out of the Rs 105 crore, Rs 5 crore has been donated from LIC's Golden Jubilee Fund, the state-owned company said in a statement. "India is facing a huge challenge in the wake of the global pandemic which is unprecedented in its severity. LIC is committed to the welfare of India and her people. We promise our solidarity with the efforts of the government and will take every step to ensure the safety and security of people and relief for the affected," LIC Chairman M R Kumar said. In a separate release, LIC gave its customers an option to pay insurance premiums at their nearest common service centre (CSC). The Corporation also said customers can use all digital modes through its website to pay premiums without any service charges. Earlier this month, state-owned insurer also extended the deadline up to April 15. HV HRS

LIC contributes Rs 105 crore towards PM-CARES Fund

New Delhi, Feb 26 () Pension Fund Regulatory and Development Authority of India is expected to add around 10-12 lakh new subscribers to its two pension schemes in the current fiscal ending March, newly-appointed Chairman Supratim Bandhopadhyay said on Wednesday.By March-end, the pension fund regulator, which runs Atal Pension Yojana (APY) and National Pension System (NPS), is expected to have nearly 3.48-3.50 crore subscribers on board.Total number of subscribers under the two schemes were around 3.38 crore as of February 22, 2020."By the end of the fiscal if you look at APY, there may be another close to 8-10 lakh additions and another 1-1.5 lakh for NPS. So all taken together, around 10-12 lakh new customers should join our fold by March-end," Bandhopadhyay said. Total asset under management (AUM) for these 337.63 lakh subscribers stood at Rs 4,21,336 crore as on February 22, 2020, according to the PRFDA data.Bandhopadhyay, who took charge on February 21, 2020, was the Whole Time Member (Finance) in the PFRDA for two years.Earlier to this, he was with the Life Insurance Corporation (LIC) for around three-and-a-half decades. He is a science graduate and a qualified Chartered Accountant. KPM MRMR

PFRDA likely to add 10-12 new subscribers by fiscal-end: Chairman

<ul><li>Insurance regulator IRDAI warns insurance firms to make “prudent” decisions when investing in companies whose credit ratings have been downgraded. </li><li>IRDAI had recently allowed <keyword id="6367143" type="UNKNOWN" weightage="20" keywordseo="LIC">LIC</keyword> to vastly exceed the maximum of 15% stake an insurer can hold in any one company. </li><li>Policyholders’ funds potentially at risk with large exposure to the investments.</li></ul> Amid an escalating bad loans crisis, India appears to be <a href="https://www.businessinsider.in/after-idbi-bank-lic-now-has-to-bail-a-huge-infrastructure-lender-out/articleshow/65840416.cms">relying heavily</a> on the capital of state insurance giant Life Insurance Corporation (LIC) to bail out some of its troubled lenders, leading to experts worrying about a dangerous precedent being set by the insurer. The country’s bad debt crisis involving its state-owned <keyword id="6368751" type="UNKNOWN" weightage="20" keywordseo="banks">banks</keyword> had largely been believed to have had manageable systemic risk with fairly low liquidity concerns –- until now. India is in the midst of its worst <a href="https://timesofindia.indiatimes.com/business/india-business/worst-liquidity-crunch-in-two-years-spooks-indian-financiers/articleshow/65935292.cms">liquidity crisis</a> in two years triggered by the potential bankruptcy of infrastructure finance company <a href="https://www.livemint.com/Money/QBX7Nlk3SmtboyZPExoKtN/ILFS-Its-time-for-a-surgery-not-bandaid.html">Infrastructure Leasing and Financial Services Ltd</a> (<keyword id="6357293" type="UNKNOWN" weightage="20" keywordseo="ILFS">IL&amp;FS</keyword>), which has defaulted on a series of loan repayments, raising alarm in the country’s shadow banking sector and spooking financial markets. LIC, the largest shareholder in IL&amp;FS with a 25.3% stake, is <a href="https://www.businessinsider.in/after-idbi-bank-lic-now-has-to-bail-a-huge-infrastructure-lender-out/articleshow/65840416.cms">reportedly</a> investing close to ₹40 billion ($550 million) into IL&amp;FS non-convertible debentures and also expected to subscribe to a ₹45 billion rights issue later this year. It is reportedly in the process of <a href="https://www.livemint.com/Companies/7sWf4fZDJAagLyFgyWemuN/ILFS-may-move-NCLT-against-admitting-bankruptcy-case.html">requesting</a> India’s insolvency court National Company Law Tribunal to allow it time to resolve its current situation through its capital raising efforts and hold off on admitting a bankruptcy suit. The news of IL&amp;FS comes weeks after LIC stepped in to also bailout state-owned <keyword id="67881" type="CITY" weightage="20" keywordseo="IDBI">IDBI</keyword> Bank by increasing its stake from 8% to 51% for upto ₹130 billion. Regulatory exceptionalism India’s regulators restrict investments by insurance organisations to a maximum of 15% stake in any one company. In the IDBI case, LIC sought special clearance from India’s insurance regulator Insurance Regulatory and Development Authority of India (IRDA), which reportedly <a href="https://www.livemint.com/Companies/XY6tlJMDpBAKAlhv2dPczJ/IDBI-Bank-says-no-discussion-on-investment-by-LIC.html">waived the threshold</a> “based on market conditions and the larger interest of the market and shareholders,” Mint reported in June. Additionally, out of the investment LIC made in IDBI, less than 1% or only about ₹1 billion has come from LIC’s shareholders with the remaining being policyholders’ money, according to the Mint report. That shows the extent of how risky the move can be. While LIC has indicated it will pare down its stake in IDBI in the coming years, no timeframe has been set by the insurer. LIC had earlier made an <a href="https://economictimes.indiatimes.com/markets/stocks/news/will-lic-follow-the-corp-bank-model-to-pare-stake-in-idbi/articleshow/64957202.cms">investment</a> in Corporation Bank exceeding the threshold limit of 15% to buy a 27% stake, which took about 16 years for LIC to pare down, experts point out. A case of throwing good money after bad? Following the news of LIC investing in IL&amp;FS, a subtle warning has come from the Insurance Regulatory and Development Authority of India (Irdai), which has asked insurance firms to make “prudent” decisions when investing in companies whose credit ratings have been downgraded. Subhash C Khuntia, chairman of IRDAI, has <a href="https://www.business-standard.com/article/markets/i-m-sure-lic-will-take-a-prudent-decision-on-il-fs-says-irdai-chairman-118091200040_1.html">said</a>, “Normally, when there is a downgrade, insurers should withdraw their investment and place it somewhere else,” Khuntia said, adding it is up to the insurer to derive maximum value from its investments. The National Organisation of Insurance Workers (NOIW), has also opposed LIC’s move to invest in IL&amp;FS, with NOIW organising secretary Milind Ballal <a href="https://mumbaimirror.indiatimes.com/mumbai/other/sangh-union-opposes-lic-investment-in-ilfs-group/articleshow/65894098.cms">stating</a> “thousands of crores of rupees collected by the LIC from ordinary Indians as premium is at stake.” Joydeep K. Roy, partner and leader, insurance sector, PwC, had termed LIC’s investment in IDBI an <a href="https://www.livemint.com/Companies/XY6tlJMDpBAKAlhv2dPczJ/IDBI-Bank-says-no-discussion-on-investment-by-LIC.html">“extraordinary event</a>” that “should not be allowed as a precedent.” “Insurers holding a larger share of any one company for policyholders’ funds can increase the entire risk profile of the portfolio. However, this is ultimately an equity transaction for policyholder funds and can result in profits or losses,” Roy said. While Sanket Kawatkar, Principal and Consulting Actuary, Life Insurance, Milliman India, has <a href="https://economictimes.indiatimes.com/wealth/insure/lic-idbi-bank-deal-how-life-insurance-companies-invest-your-money/articleshow/64894026.cms">warned </a>LIC policyholders’ benefits would be adversely impacted if LIC incurs a loss on its investment. Elsewhere, insurers’ exposure to bad debt has led to dire consequences. In the 2008 credit crisis in the US, for instance, insurance giant American Insurance Group (AIG) had a near collapse because of the insurer’s exposure to soured loans through its investment in risky credit default swaps. That led to the US Federal Reserve bailing out AIG by giving a crucial loan of $85 billion that kept it from going under.

Why India’s reliance on state insurance giant LIC to bailout troubled lenders is worrying

<keyword id="3820" type="General" weightage="100" keywordseo="mukesh-ambani" source="Orion">Mukesh Ambani</keyword>, Chairman and Managing Director, Reliance Industries, has been appointed as the member of <keyword id="223206" type="General" weightage="80" keywordseo="advisory-committee" source="Orion">Advisory Committee</keyword> to the President of the 28th Session of the Conference of the Parties (COP28) to the United Nations Framework Convention on Climate Change (UNFCCC). Mukesh Ambani joined other important global leaders on the COP28 Advisory Council such as Larry Fink, Chairman and CEO of BlackRock, Olafur Grimsson, Chairman of Arctic Circle (Former President of Iceland), Laurent Fabius, President of COP21 / Paris Agreement, Former Prime Minister of France, Francesco La Camera, Director General, International Renewable Energy Agency (IRENA), Bob Dudley, Chair of the Oil &amp; Gas Climate Initiative (OGCI), former CEO of BP. Mukesh Ambani is the only Indian, other than <keyword id="111359" type="General" weightage="50" keywordseo="sunita-narain" source="Orion">Sunita Narain</keyword>, Director General, Centre for Science and Environment, on the Advisory <keyword id="47865" type="General" weightage="80" keywordseo="committee" source="Orion">Committee</keyword> to the President of COP28. The COP28 UAE Advisory Committee brings together the climate expertise of thought leaders from countries across six continents. Representing policy, industry, energy, finance, civil society, youth, and humanitarian action, the 31 members of the Committee, of which 65 per cent are from the Global South, will provide guidance and counsel to the COP Presidency in the run up to COP28 and beyond. The UNFCCC Secretariat announced in January 2023 appointed <keyword id="2021753" type="General" weightage="50" keywordseo="sultan-ahmed-al-jaber" source="Orion">Sultan Ahmed Al Jaber</keyword>, Minister of Industry and Advanced Technology and UAE Special Envoy for Climate Change, as COP 28 President-Designate. UAE has been chosen to host the 28th session of the Conference of Parties (COP 28) to the UNFCCC (United Nations Framework Convention on Climate Change) from November 30, 2023 to December 12, 2023. It will be held at Dubai Expo City. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/lic-shares-surge-over-3-after-it-posts-a-five-fold-jump-in-q4-net-profit/articleshow/100495712.cms">LIC shares surge over 3% after it posts a five-fold jump in Q4 net profit</a> <a href="https://www.businessinsider.in/stock-market/news/adani-enterprises-titan-eicher-motors-tata-motors-reliance-and-other-big-companies-performance-in-nifty-50/articleshow/100474408.cms">Big boys drive Nifty50’s revenue and profit growth in FY23</a> <a href="https://www.businessinsider.in/business/corporates/news/gqg-partners-rajiv-jain-doubles-down-on-his-adani-bet/articleshow/100450041.cms">GQG Partners’ Rajiv Jain doubles down on his Adani bet</a>

Mukesh Ambani joins COP28 Advisory Committee

India on Friday successfully placed three satellites into orbit on a rocket completely developed by a four-year-old startup, marking the entry of the private sector into space activities, currently dominated by the state-run behemoth ISRO. <keyword id="7537495" type="General" weightage="80" keywordseo="skyroot-aerospace" source="Orion">Skyroot Aerospace</keyword>-designed Vikram-S, named in a befitting tribute to the father of the country's space programme <keyword id="29151" type="General" weightage="50" keywordseo="vikram-sarabhai" source="Orion">Vikram Sarabhai</keyword>, tasted success in its maiden mission. Skyroot Aerospace become the first privately held company in India after the space sector was opened for private players by the Centre in 2020. "I am happy to announce the successful completion of Mission Prarambh, The Beginning, by Skyroot aerospace," a smiling Pawan Goenka, Chairman of the country's space regulator, Indian National Space Promotion and Authorisation Centre (INSPACe), said from ISRO's Mission Control Center here. The rocket achieved an altitude of 89.5 km and a range of 121.2 km, "exactly what was planned by Skyroot Aerospace," he said. The rocket "worked as planned" and Skyroot Aerospace has demonstrated various capabilities of sub-systems that will go into the orbital launch vehicle, he added. The rocket integrated into the launcher soared after lifting off at the prefixed 11.30 am from the sounding rocket complex at the Indian Space Research Organisation's Satish Dhawan Space Centre, here, about 115 km from Chennai. The Mission unveiled by ISRO Chairman S Somanath has three payloads with two belonging to domestic customers and one from a foreign client. The 6-metre tall launch vehicle is one of the world's first few all-composite rockets that has 3-D printed solid thrusters for spin stability of the launch vehicle. "This is a new beginning for the Indian private sector entering aerospace and a historic moment for all of us," Goenka said. The three payloads riding piggyback on the rocket are from Chennai-based start-up SpaceKidz, Andhra Pradesh-based N-SpaceTech and Armenian BazoomQ Space Research Lab. Vikram-S launched the payloads in about 500 km low inclination orbit. In a departure from the routine, Friday's mission was launched from the complex where sounding rockets were used by ISRO. The Satish Dhawan Space Centre (SDSC) in <keyword id="6355143" type="General" weightage="50" keywordseo="sriharikota" source="Orion">Sriharikota</keyword> has two launch complexes, each capable of providing complete support for vehicle assembly, check out and launch operations for any kind of missions -- Low Earth Orbit, Geosynchronous Transfer Orbit. PSLVs and GSLVs are launched from here. Friday's mission is considered to be a significant milestone for Skyroot Aerospace as it would help test and validate the majority of the technologies in the <keyword id="1091" type="General" weightage="100" keywordseo="vikram" source="Orion">Vikram</keyword> series of orbital class space launch vehicles, including many sub-systems and technologies that would be tested before lift-off and post-lift off phases of the launch. 'Fun-Sat', a 2.5 kgs payload belonging to Chennai-based aerospace startup Spacekidz, has been developed by students from India, the United States, Singapore and Indonesia. The 545 kg Vikram launch vehicle consists of the Vikram II and Vikram III series. The technology architecture of the launch vehicle offers unique capabilities like multi-orbit insertion and interplanetary missions while providing customised, dedicated and ride-share options covering a wide spectrum of small satellite customer needs, Skyroot Aerospace said. The company added the rockets can be assembled and launched within 24 hours from any launch site. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/sensex-makes-a-positive-opening-tracking-gains-in-the-asian-markets-paytm-lic-among-the-stocks-to-watch-out-for/articleshow/95593276.cms">Sensex makes a positive opening tracking gains in the Asian markets – Paytm, LIC among the stocks to watch out for</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/even-a-single-attack-is-one-too-many-pm-modi-at-anti-terror-conference/articleshow/95597270.cms">'Even a single attack is one too many': PM Modi at anti-terror conference</a>

Vikram-S marks "The Beginning" of private venture in Indian space programme with maiden success

<ul><li> As many as 1.5 lakh of these employees were hired by Reliance Retail, the retail arm of RIL.</li><li>It claims that Reliance Retail is one of the biggest employers in India, with over 361,000 employees in total.</li><li>Reliance spent close to ₹18,775 crore ($2.4 billion) on employee benefits expense in FY2022.</li></ul>The Mukesh Ambani-led oil-to-chemical conglomerate Reliance Industries Limited (RIL) added over 2.1 lakh new employees on its payroll in the fiscal year 2022, the company said in a statement. As many as 1.5 lakh of these employees were hired by Reliance Retail, the retail arm of RIL. The company now claims that Reliance Retail is one of the biggest employers in India, with over 361,000 employees in total. “During the year, Reliance has also been able to generate significant employment opportunities for the people of our country and continues to remain amongst India’s largest private sector employers,” said RIL chairman Mukesh Ambani. “Over the past year, we added over 2.1 lakh new employees across our businesses with our consumer and technology business creating a large part of these new jobs,” he added. Reliance Industries Limited, on a consolidated basis, spent close to ₹18,775 crore or $2.4 billion on employee benefits expense between April 2021 and March 2022. This represents an increase of nearly ₹4,000 crore compared to the same time period in the previous year. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Timeline </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Employee benefits expense </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Oct-Dec 2021 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,660 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Jan-Mar 2022 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5,278 crore </td></tr></tbody><tbody></tbody></table>Source: Reliance Industries Limited (RIL) Reliance Industries Limited reported gross revenue of ₹792,756 crore (about $105 billion) in gross revenue in the fiscal year 2022. Its net profit stood at ₹67.845 crore in the same time frame. On a quarterly basis, the company reported ₹2.32 lakh crore )$30.7 billion) in revenue. The company reported a net profit of ₹18,021 crore ($2.4 billion) in January-March quarter, which is equivalent to the amount Reliance spent on employee benefits last fiscal year. SEE ALSO <a class="tout-title-link" href="https://www.businessinsider.in/retail/news/reliance-retail-hits-2-lakh-crore-in-revenue-adds-over-2500-stores-in-the-last-one-year/articleshow/91381054.cms">Reliance Retail hits ₹2 lakh crore in revenue, adds over 2,500 stores in the last one year</a> <a href="https://www.businessinsider.in/business/corporates/news/zomatos-deepinder-goyal-donates-stock-option-worth-700-crore-to-zomato-future-foundation/articleshow/91371003.cms" data-type="tilCustomLink">Deepinder Goyal donates his Zomato stock options worth ₹700 crore to offer free education for delivery partners’ children and more</a> <a href="https://www.businessinsider.in/stock-market/news/delhivery-ipo-size-cut-down-by-a-third-due-to-market-volatility-and-lic-ipo-say-analysts/articleshow/91348072.cms">Delhivery IPO size cut down by a third due to market volatility and LIC IPO, say analysts</a>

Reliance adds over 2 lakh new jobs in India in FY22 – every 3 out of 4 new jobs are from retail alone

<ul><li>Jio Financial Services (<keyword id="4167600" type="General" weightage="80" keywordseo="jfs" source="Orion">JFS</keyword>) could emerge as the fifth largest financial services company in terms of net worth, says Macquarie Research.</li><li>JFS has multiple factors that could help it score over the likes of <keyword id="6357120" type="General" weightage="100" keywordseo="paytm" source="Orion">Paytm</keyword> and <keyword id="111876" type="General" weightage="80" keywordseo="bajaj-finance" source="Orion">Bajaj Finance</keyword> among others.</li><li>Reliance’s large distribution network, customer base and deep pockets will benefit Jio Financial Services, the report says.</li></ul>Paytm’s financial services pivot now faces a new threat as <keyword id="3820" type="General" weightage="20" keywordseo="mukesh-ambani" source="Orion">Mukesh Ambani</keyword>, India’s second richest man, has set out to demerge the financial services business from Reliance Industries into a new company to be called Jio Financial Services (JFS). A new report by Macquarie Research says that JFS could emerge as the fifth largest financial services company in terms of net worth – according to the demerger update, Reliance Industries will transfer 6.1% of its shares to JFS. <div type="image" title="JFS-networth" msid="95714505" hostid="261" sizebytes="36060" caption="&amp;lt;p&amp;gt;Jio Financial Services&amp;#39; estimated net worth&amp;lt;/p&amp;gt;"></div> Paytm shares hit a new 52-week low during intraday trading on Wednesday, with a decline of over 5.62% to ₹450 – marking a decline of 79% from its issue price of ₹2,150. <cmsannotation type="cmsannotation" annotationid="Paytm’s financial services offerings face challenge from Reliance’s deep pockets" comment="subhead" text="Paytm’s financial services offerings face challenge from Reliance’s deep pockets">Paytm’s financial services offerings face challenge from Reliance’s deep pockets</cmsannotation> One 97 Communications, the operator of digital payments platform Paytm <a href="https://www.businessinsider.in/business/corporates/news/paytms-lending-and-merchant-businesses-drive-revenue-growth-in-q2-low-penetration-offers-headroom-for-growth-say-analysts/articleshow/95423464.cms">posted</a> a 14% sequential rise in Q2 revenue to ₹1,914 crore driven by growth in its lending and merchant business. For the quarter ended September, Paytm reported a loss of ₹572 crore, which narrowed from ₹644 crore in the previous quarter. Analysts at Goldman Sachs expect Paytm’s margin to improve further and forecast FY24 to be the first full year of adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) profitability with continuing momentum in the lending vertical. However, Reliance’s large distribution network, customer base and deep pockets will benefit Jio Financial Services, according to Jefferies. The company’s network of over 15,000 stores across several formats (supermarkets, digital stores, etc.) and a vast customer base of more than 400 million in telecom and over 200 million in the retail segment could give JFS a large customer base to bank on. “Unlike other fintechs, JFS will have a large balance sheet, not be asset-light and eventually manufacture most product offerings, giving it a significant competitive advantage, in our view,” the Jefferies report added. Access to vast amounts of real-time data will give the RIL arm a big advantage, making it a tough competitor to other NBFCs, banks and fintechs, analysts say. “JFS will differ from most other fintechs, as it will have access to huge amounts of data, gathered from non-financial relationships; it can process and analyse this data in real time, to offer financial services, similar to Alibaba, Amazon, Apple, Facebook and Google,” added the Jefferies report. <cmsannotation type="cmsannotation" annotationid="Here are the factors which could benefit JFS" comment="subhead" text="Here are the factors which could benefit JFS">Here are the factors which could benefit JFS</cmsannotation> According to the analysts at Macquarie Research, JFS has multiple factors which could help it go one up on the likes of Paytm and Bajaj Finance, among others. Reliance’s deep pockets mean that JFS will benefit from an AAA credit rating, which will help it in attracting funds at low costs when compared to its rivals. As of now, only six large non-banking financial companies (NBFC) have the AAA credit ratings – HDFC, Bajaj Finance, LIC Housing, Tata Capital, Aditya Birla Capital and HDB Financial. Other factors include highest capitalisation amongst large NBFCs, large distribution footprint thanks to Reliance, and the ability to attract top talent thanks to its parent being one of the largest conglomerates of India, according to the report. The last part has already played out – KV Kamath has been appointed as an independent director on the board of Reliance Industries, and the non-executive chairman of Reliance Strategic Investments, which will house JFS. Kamath has played a key role in transforming ICICI into a diversified technology-driven financial services group. “The NBFC business model has been a treacherously difficult one for most conglomerates that have entered the space, with Bajaj Finance and Chola Finance being the standout exceptions,” the report said, but added that RIL’s hunger for scale can “pose a significant growth and market-share risk for players like Bajaj Finance and Paytm with whom it could be competing head-on.” <cmsannotation type="cmsannotation" annotationid="Banks will be able to ward off the JFS challenge" comment="subhead" text="Banks will be able to ward off the JFS challenge">Banks will be able to ward off the JFS challenge</cmsannotation> On the other hand, JFS won’t be as much of a threat to banks, according to the research firm. “We believe JFS could compete more on the unsecured lending done by non-banking financial companies (NBFC) and fintechs than banks as it would be difficult to compete on risk-adjusted pricing to the kind of customers that banks cater to. While there will be some impact, we believe banks largely should be able to manage the competitive intensity coming from JFS,” the report said. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/women-on-nifty500-company-boards-rise-from-6-in-2014-to-17-6-but-the-pace-is-faltering/articleshow/95709351.cms">Women on Nifty500 company boards rise from 6% in 2014 to 17.6%, but the pace is faltering</a> <a href="https://www.businessinsider.in/business/news/vocal-for-local-online-commerce-unicorn-meesho-joins-ondc-to-aid-local-sellers/articleshow/95704818.cms">Vocal for local: Online commerce unicorn Meesho joins ONDC to aid local sellers</a> <a href="https://www.businessinsider.in/stock-market/news/fpis-pour-11452-crore-in-financial-services-in-the-first-half-of-november/articleshow/95681904.cms">FPIs pour ₹11,452 crore in financial services in the first half of November</a>

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