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LIC in takeover controversy
Updated : Jun 30, 2018
LIC is one of the rarest examples where the public sector company has been making profits. However there was criticism that the government is often misusing its huge assets to bail out the companies there were in loss. LIC was asked to buy major shares in ONGC when no one came forward to purchase them. Now in a fresh controversy, LIC has decided to take over the shares of state owned IDBI bank. IDBI bank has not been performing well since a few years and almost on the verge of collapse. Now that the LIC has stepped in to purchase 51 percent of IDBI ownership, fresh air would be vented into the bank. However many analysts were criticising that the policyholders money is being misused to bail out an organisation that’s sinking.