Is your Insurance in post office: Alert, 1 lakh crore of 47 lakh people stranded!
The poison of Infrastructure Leasing and Financial Services Limited (IL & FS) bonds is spreading rapidly. Postal Life Insurance policy holders are also trapped in bad bonds of IL & FS. According to the news of the news, its impact could be on 47 lakh policy holders, of which more than Rs 1 lakh crore has been invested in the policy. Right now it is not good news for the government before the upcoming general election. Opposition parties have also expressed concerns over the trapping of salaried workers in these bad bonds.
46.8 million Postal Life Insurance
In such a case, it has become necessary for the government to take immediate action to reduce the increasing panic in the investors in view of the huge drop in these bonds. Let us know that in the list of PLI policy holders, at the end of 2016-17, 2,13,323 new policies have been attached, whose total sum assured is Rs 11,096.67 crore. At the end of the financial year 2016-17, the total number of policies was 46.8 lakh and the total amount was Rs 1,13,084.31 crore. At the end of the financial year 2016-17, the remaining fund was Rs 55,058.61 crore, while income from the installment was Rs 7,233.89 crore.
What is il & fs
IL & FS is a non-banking finance company i.e. the NBFC status and it is a government sector company. In 1987, the Central Bank of India, Unit Trust of India and the Housing Development Finance Company created it to lend to infrastructure projects. IL & FS takes loans from other banks. Due to being a public sector company, it does not have to guarantee any kind of guarantee. It was rated as a very safe rating by the rating agency.
What is the IL & FS crisis
The IL & FS Group has a debt of about Rs 91 thousand crore, which has failed the company to repay. In the bonds of the company, money is invested in all mutual funds, insurance companies and NBFCs of the country. Last year, the problem of liquidity crisis came in the company and the condition of the company is that the buyers are not getting the buyers in the market. IL & FS is going to default to repaying old debt.
The company had three default only in September last year. The company can not get a loan now and it also fails to raise money from the market because its rating has changed to ‘junk status’. As soon as ICRA reduced the company’s rating, there was panic in investors, banks and mutual funds, which remained so far.