Industry News

Life insurance companies reported strong growth in first-year premium in August, with total industry premium rising 33.1% year-on-year to ₹41,198 crore, according to the latest industry data.

LIC reported a 45.3% year-on-year increase in first-year premium to ₹23,275 crore, while private life insurers recorded a 20% rise to ₹17,922 crore.

Among private insurers, HDFC Life's first-year premium increased 17.8% year-on-year to ₹3,609 crore, while SBI Life reported a 2.8% rise to ₹3,415 crore. ICICI Prudential Life's first-year premium grew 9.9% to ₹1,953 crore, while Canara HSBC Life reported a 5.2% increase to ₹278 crore.

ICICI Prudential Life's new business premium rose 10% year-on-year in August, while retail annualised premium equivalent (APE) increased 23.4%.

Bajaj Life Insurance also reported a strong performance, with new business premium rising 32% year-on-year to ₹1,954 crore in August.

For April-August, life insurers' first-year premium stood at ₹1.97 lakh crore, up 20.4% from the year-ago period.

In the general insurance segment, Bajaj General Insurance reported an 11% year-on-year increase in gross direct premium to ₹2,291 crore in August.

Premium growth remains strong so far this fiscal

For the April-August period, life insurers' total first-year premium stood at ₹1.97 lakh crore, up 20.4% from the year-ago period.

ICICI Prudential Life also reported a 10% increase in new business premium in August, while its retail annualised premium equivalent, or APE, rose 23.4% year-on-year.

APE is a measure insurers use to track the annualised value of premiums from new policies, giving a better sense of the underlying pace of new business than a simple premium collection figure.

LIC has received RBI approval to acquire up to 9.99% of ICICI Bank's paid-up share capital or voting rights within one year of the September 4 approval.

Public sector insurer Life Insurance Corporation of India (LIC) has received approval from the Reserve Bank of India (RBI) to acquire an aggregate holding of up to 9.99% in private lender ICICI Bank, giving the insurer regulatory clearance to raise its stake in the bank, according to a regulatory filing.

The RBI approval covers up to 9.99% of ICICI Bank's paid-up share capital or voting rights. The approval is valid for one year from the date of the RBI's letter, after which it will lapse if LIC does not acquire the stake within the stipulated period.

ICICI Bank received the RBI approval letter, dated September 4, 2026, at 9:09 pm on the same day, according to the exchange filing. The proposed acquisition will also be subject to applicable statutory and regulatory requirements, including conditions specified by the central bank.

"The approval is subject to certain conditions including compliance with the relevant statutory and regulatory provisions," the filing said.

14:50 (IST), August 5

"The RBI delivered a widely anticipated hold on policy rates, balancing resilient growth amidst still-contained inflation outlook. By maintaining a neutral stance, the central bank has preserved flexibility rather than signalling a tightening bias. We remain constructive on high quality fixed income instruments and expect yield movements to be driven more by global geo-political developments that may impact inflation outcome, than by expectations of future policy actions," says Rahul Goswami, CIO & MD, India Fixed Income, Franklin Templeton.

What it means for REITs and InvITs

"The RBI's decision to hold the repo rate at 5.25% reinforces stability in the cost-of-capital environment, but the bigger story for India's listed real assets is the deepening of the capital pool. With the proposed framework for depository receipts potentially opening REITs and publicly listed InvITs to a wider base of global investors, the next phase of growth may be less about lower rates and more about making Indian real assets investable globally.

For REITs and InvITs, this puts the focus squarely on the quality and resilience of underlying cash flows, distribution per unit (DPU) growth and asset fundamentals. A broader global investor base can deepen liquidity and price discovery, while giving long-duration international capital more direct access to India's real estate and infrastructure growth story. Over time, this could move the conversation from India attracting foreign capital to Indian real assets becoming a more meaningful component of global asset allocation," says Chanakya Chakravarti, Global Real Estate Investor and Capital Strategist.

13:24 (IST): Favorable sign for the luxury real estate market

"Maintaining the repo rate by RBI is a favorable sign for the luxury real estate market. Interest rate stability increases confidence levels amongst the high net worth individuals and non-resident Indians, which helps in making informed decisions for investing in expensive and valuable properties. Although this segment of real estate market is less susceptible to interest rates, yet stability in policy makes them more favorable for investment in luxury property segments," says Ravikant, Co-Founder Elegance Infra and Enterprises.

Much-needed predictability to market participants

"Maintaining the repo rate is a prudential decision by the RBI that has come about after weighing various factors regarding the need to balance between fostering economic growth and preserving macroeconomic stability. A steady interest rate regime gives much-needed predictability to the market participants, which enables them to take important decisions in a more structured manner. The real estate segment is also benefited by policy consistency, and this helps in improving buyer sentiment, proper planning of projects, and ensuring financial discipline within the industry. The fast-paced growth in the infrastructure segment and the strength in demand levels mean that a steady monetary policy would help in keeping the investment momentum going," says Ashish Bhutani, CEO, Bhutani Infra.

12:53 (IST): Plastic notes by next financial year

The RBI Governor said plastic notes are expected by the next financial year.

Cautious but steady amid an increasingly unsettled global backdrop

"Today's MPC outcome reflects a cautious but steady hand amid an increasingly unsettled global backdrop. The MPC's unanimous decision to hold the repo rate at 5.25% and retain the neutral stance was in line with expectations, and a clear signal that policy continuity is the most prudent course until clearer disinflation cues emerge. Importantly, inflation remains well within the RBI's 2 to 6% tolerance band. Headline CPI has edged above the 4% central target, printing 4.4 percent in June and projected at 5% for 2026-27, with the trajectory expected to peak at 5.9% in the third quarter. The RBI has rightly characterised this as a supply-side story led by food and fuel, with core inflation, which excludes food and fuel, staying moderate at a projected 4.3%. On growth, the resilience is notable, with real GDP projected at 6.7% for the year and a strong 7.3% forecasted for the first quarter of 2027-28. The monsoon, oil prices, and trade policy remain the key variables to watch into October," says Rajeev Sharan, Head of Research, Brickwork Ratings.

Greater predictability in funding for developers

"At a time when businesses are cautiously optimistic about expansion, the decision by RBI to maintain a supportive stance is welcome. The housing sector has been witnessing healthy demand, supported by lower home loan rates and strong consumer confidence. A stable interest rate regime ensures greater predictability in funding for developers, facilitating smoother project execution, while also enabling homebuyers to make long-term financial decisions with enhanced confidence supported by stable EMIs. This continuity not only strengthens overall market sentiment but also sustains demand momentum across segments, reinforcing real estate's standing as a resilient and progressively evolving asset class. Overall, India's macroeconomic resilience, supported by steady growth and a stable financial system, continues to underpin long-term confidence in the real estate sector, even as global headwinds persist. With infrastructure growth, urbanization, and rising consumer aspirations driving long-term demand, a growth-oriented monetary policy can play a significant role in sustaining demand across segments and provide further momentum to the real estate sector's growth in the coming quarters," says Ramani Sastri - Chairman & MD, Sterling Developers.

12:11 (IST): Why is the rupee not appreciating despite measures?

"I think the underlying fundamentals of our Indian economy are very strong. There can be an argument, that it is perhaps real effective exchange rate terms may be undervalued. There is a lot of uncertainty. It is quite possible going forward as the conflict deescalates the rupee may further strengthen. It has strengthened over the last one month or so. It has strengthened from 97 levels now to about 95 levels. Our policy has always been that the markets determine the prices level and the band. We only intervene in case there is an excessive volatility. There are speculative pressures that are getting built in, and it is it will be our endeavor that the trajectory for rupee remains orderly, and there is no disruptive movement, or there is no expectation-you know-self-fulfilling expectations getting built into the exchange rate," said RBI governor Sanjay Malhotra in post-policy presser.

Sanjay Malhotra on inflation

"The framework is very clear. I don't think there is there should be any confusion about the framework. Our target is headline inflation, which is the target which has been given to us, and we'll continue to be guided by the headline inflation, and it will be our commitment. It is our endeavor to bring the headline inflation in line with the target over the medium term," said RBI governor Sanjay Malhotra in post-policy presser.

"We are neither dovish nor are we hawkish," said RBI governor Sanjay Malhotra.

11:56 (IST): Statement highlights the strengths of the economy

"The RBI has maintained status quo on rates and stance. This has been buttressed by a marginal hike in GDP forecast by 10 bps and decline in inflation by 10 bps - indicating higher growth and lower inflation which warrants a status quo view. Therefore, the commentary has also been neutral. The statement highlights the strengths of the economy which is evident from different indicators which gives a sense that growth will be on the steady path. Inflation is not a concern today but will remain elevated in Q3 and Q4 of this year as well as Q1 of FY28, though will be lower at 5.3%. This suggests that there can be a rate hike probably towards the end of the CY2026 in case these inflation numbers materialize, says Madan Sabnavis, Chief Economist at Bank of Baroda.

11:42 (IST): Housing market has shown remarkable resilience

Ashok Singh Jaunapuria, Managing Director & CEO, SS Group, said, "The RBI's decision to keep the repo rate unchanged at 5.25% provides stability and continuity, which are equally important for the real estate sector at this stage. While a rate cut would have further improved affordability, a steady interest rate environment gives homebuyers the confidence to plan their purchases without concerns over rising borrowing costs. It also enables developers to plan project execution and investments with greater certainty. Over the last few years, the housing market has shown remarkable resilience, supported by strong end-user demand, improving infrastructure and a positive economic outlook. Today, buying decisions are increasingly driven by long-term value, connectivity and quality of development rather than interest rates alone. We believe that a stable policy environment, backed by continued infrastructure investments and strong consumer confidence, will help sustain the momentum in the residential market and support healthy growth in the quarters ahead."

RBI MPC Meeting Live: RBI has paused, but it is not yet at ease

"The RBI has paused, but it is not yet at ease. By holding the repo rate at 5.25% and retaining a neutral stance, the MPC has signalled that growth remains resilient, while the room for further easing has narrowed. Inflation is again the policy's central concern: an uneven monsoon, renewed pressure on food prices and volatile crude oil leave the outlook unusually uncertain. The RBI will therefore prefer patience over pre-emption, awaiting clearer evidence before moving again. For markets, policy stability is supportive, though the more durable equity case rests on improving earnings, strengthening investment activity and resilient domestic flows," says Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group.

11:11 (IST): Housing demand and investment activity to be sustained

"We view it as a well-calibrated move in an environment marked by inflationary pressures arising primarily from supply-side factors and ongoing geopolitical uncertainties. The decision underscores the central bank's balanced approach of supporting economic growth while remaining watchful of evolving global and domestic risks. A stable interest rate environment is likely to reinforce buyer confidence, provide greater certainty to businesses and investors, and ensure continued access to affordable financing. For the real estate sector, this policy continuity is expected to sustain housing demand and investment activity, particularly across residential and commercial segments, while supporting the sector's long-term growth trajectory," says Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India.

11:03 (IST): Importantly, tone of policy was relatively neutral

"A status quo on the policy rate and stance by the MPC in the August 2026 meeting was a foregone conclusion, given the limited evidence of generalisation of inflationary pressures so far. Amidst considerable volatility engendered by geopolitics and the monsoon, the Committee's growth and inflation forecast were tweaked marginally, and we believe that these are appropriate for an average crude oil price of $80-85/barrel and a moderate rainfall deficit. Importantly, the tone of the policy statement was relatively neutral, and does not suggest that rate tightening is imminent," says Aditi Nayar, Chief Economist, ICRA Ltd.

Realised inflation lower than projections

"Headline CPI inflation edged up above the target, as expected. The realised inflation for Q1, however, remained marginally lower than projections reflecting limited pass-through of cost pressures. The higher inflation is mostly on account of fuel and food with little signs of generalisation of price pressures so far," said the MPC statement.

10:47 (IST): What it means for real estate sector

"The RBI's decision to hold the repo rate, at 5.25%, for a fourth straight time reflects a calibrated approach at a time when rising crude prices, food inflation and continued geopolitical uncertainty continues to demand prudence over policy activism. For real estate, rate stability is a positive signal heading into the festive season, which is typically the strongest period for housing demand in India. Predictable borrowing costs give homebuyers the confidence to act on long-deferred purchase decisions, while developers benefit from a stable financing environment to plan launches around the festive calendar. We expect this continuity to support healthy residential sales momentum through the second half of 2026, particularly in the mid and premium segments where affordability is closely tied to interest rate sentiment.

Our commercial real estate fundamentals remain strong. Office demand is robust, warehousing and data centers continue to attract capital, and residential markets in key cities have sustained their momentum. The MPC still has a balancing act ahead, it must protect growth while staying watchful of an inflation - which it says is likely to peak in the October-December quarter. Yet India's underlying strengths - a strong investment pipeline and resilient domestic demand - give us reason for confidence heading into the second half of the year," says Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.

10:32 (IST): Impact of El Niño

"Going forward, El Niño's impact on temporal and spatial rainfall distribution continues to remain a risk, although proactive supply management and adequate stocks of foodgrains could provide buffers," the MPC statement said.

10:29 (IST): India's strong fundamentals

"Global economic conditions and sentiments continue to remain hostage to the rapidly oscillating developments, both in scale and intensity of the West Asia conflict. While these have impacted the domestic growth inflation outlook adversely, the stronger macroeconomic fundamentals of the Indian economy are helping navigate this global shock resolutely," said RBI governor Sanjay Malhotra.

10:28 (IST): What the policy means for households

"The RBI's decision to keep the repo rate unchanged at 5.25% while retaining the neutral stance suggests that inflation remains the MPC's primary focus for now. While economic activity continues to show resilience, the recent uptick in inflation, driven largely by food and fuel prices, along with geopolitical uncertainties and volatility in global energy prices, means the RBI is likely to seek greater confidence that price pressures are easing before considering any further policy action.

For households, this means little immediate change. Existing borrowers are unlikely to see any change in EMIs in the near term, while deposit rates are likely to remain broadly stable. For now, inflation is likely to remain a more immediate consideration for household finances than expectations of lower borrowing costs," says Adhil Shetty, CEO, Bankbazaar.

Sanjay Malhotra on rupee

"As for the exchange rate, as mentioned earlier, we will continue with our policy of it being determined by market forces, while at the same time curbing excessive volatility, checking speculative behavior, and preventing disorderly movements, so as to ensure that it is not out of sync with the fundamentals, or it is not disruptive of economic activity. For this purpose, we have a very broad range of effective regulatory and market-based instruments," said RBI governor Sanjay Malhotra.

10:21 (IST): Healthy BoP surplus expected

"Capital flow measures undertaken in June will support inflows. As a result, the balance of payments is expected to register a healthy surplus," said RBI governor Sanjay Malhotra.

10:21 (IST): Forex reserves adequate

India's foreign exchange reserves continue to be adequate in terms of the standard metrics of reserve adequacy with import cover of over 10 months and external debt cover of almost 91%, said RBI governor Sanjay Malhotra.

10:19 (IST): Sanjay Malhotra on capital adequacy

"The system-level financial parameters relating to capital adequacy, liquidity, asset quality, and profitability of the scheduled commercial banks continue to remain healthy," said RBI governor Sanjay Malhotra.

Tight rope walk for RBI

"The RBI interest rate as widely expected stays unchanged with the Monetary policy stance continuing to be neutral. Benign core inflation combined with marginally higher headline inflation and anchored inflation expectations, resulted in the decision. It's a tight rope walk between growth and stability that the RBI has done again with dexterity," says Vivek Iyer, Partner and Financial Services Risk Advisory, Grant Thornton Bharat.

10:16 (IST): Inflation projected at 5%

CPI inflation for this year is now projected at 5%, 10 basis points lower than our earlier projections, with Q2 at 4.7%, Q3 at 5.9%, and Q4 at 5.5%. Inflation for Q1 is projected at 5.3% with risks being evenly balanced, said RBI governor Sanjay Malhotra.

10:14 (IST): FY27 GDP growth outlook revised upwards

"Real GDP growth for this year is now projected at 6.7%. This is about this is 10 basis points higher than our previous projections. Q1 at 7%, Q2 at 6.4%, Q3 at 6.5%, and Q4 at 6.8%. The risks are evenly divided," said RBI governor Sanjay Malhotra.

FTAs expected to help

Net external demand is expected to derive strength from bilateral trade agreements, many of which have recently been concluded, and many of and some of which are now being operationalized, as well as the market diversification efforts of our manufacturers, said RBI governor Sanjay Malhotra.

10:10 (IST): Agriculture outlook clouded

"Looking ahead, prospects for agriculture are clouded by deficient and uneven Southwest monsoons amidst El Nino conditions. The reservoir levels, which remain close to normal, bode well. The government's initiatives for crop diversification, including short duration as well as climate resilient crops and water harvesting and conservation intra-alia are expected to mitigate the impact of deficient rainfall," said RBI governor Sanjay Malhotra.

10:09 (IST): Economy performed better than expected

"Merchandise exports rebounded with double-digit growth. Services exports. growth sustained its momentum. Overall, the Indian economy performed better than expected in Q1," said RBI governor Sanjay Malhotra.

10:08 (IST): Healthy economic indicators

"Amidst persistent global uncertainty, domestic economic activity has exhibited resilience, as reflected by the high-frequency indicators available for Q1. Early results of corporates for Q1 indicate healthy performance in the manufacturing sector," said RBI governor Sanjay Malhotra.

Policy rationale

"Growth, albeit resilient, is expected to be lower in this financial year. The outlook, however, is hazy because of the uncertainties regarding Southwest Monsoon, El Nino, geopolitics, and global trade policy. There is a need for greater clarity to emerge, especially regarding inflation, its path, and composition, before taking any policy action," said RBI governor Sanjay Malhotra.

10:06 (IST): Growth continues to be supported by resilient domestic demand

Growth continues to be supported by the resilient domestic demand, said RBI governor Sanjay Malhotra.

10:05 (IST): Inflation expected to rise in the near term

"Headline inflation is expected to rise further in the near term. It is expected to peak in Q3 of this year, primarily due to food and fuel, and thereafter moderate. The underlying inflation reflected by core inflation, excluding precious metals, which has been benign for some time, is set to align with core inflation towards the end of the financial year," said RBI governor Sanjay Malhotra.

10:04 (IST): Repo rate unchanged

"The Monetary Policy Committee met for its third bi-monthly meeting of this financial year on third, fourth, and fifth-that is today-to deliberate and decide on the policy repo rate. After a detailed assessment of the evolving macroeconomic and financial developments, as well as the outlook, the MPC decided unanimously to keep the policy repo rate unchanged at 5.25 percent," said RBI governor Sanjay Malhotra.

Global growth projected to soften

"The global economic environment has become increasingly unstable. Global global growth is projected to soften, while inflation forecast is higher for 2026," said RBI governor Sanjay Malhotra.

09:56 (IST): What MSMEs want

Shrikant Goyal, Co-Founder of Getfive, said that although inflation has edged higher in recent months, it continues to remain within the RBI's comfort zone.

"Thus, we expect the central bank to maintain the status quo on the policy rate front, which will go a long way in supporting the MSME sector in general and the broader economy as a whole," he said.

09:47 (IST): Neutral stance likely

Emkay Global Financial Services expected the MPC to keep rates and its neutral stance unchanged, while balancing uncertainty from the Middle East conflict, tighter global financial conditions, and El Niño risks against resilient domestic growth and robust FCNR+ inflows. The source noted that the RBI might use temporary liquidity absorption rather than tighten its policy stance.

09:21 (IST): Stock market opens in green

Ahead of the RBI policy, markets opened in green even as the divergence in Sensex and Nifty continued after the new CAS mechanism was implemented from the start of the week.

At 9:18 AM, Nifty50 was trading at 24,647.05, up 32 points or 0.13%. BSE Sensex was at 78,909.27, up 480 points or 0.61%.

09:00 (IST): Why MPC may hold and not hike rates

The RBI Monetary Policy Committee was expected to keep the benchmark rate unchanged at 5.25% and maintain a neutral stance. The policy statement was expected to stress vigilance on inflation while considering core inflation and supply-side pressures. Markets were also watching West Asia and the US Federal Reserve for possible effects on the rupee, capital flows, and interest-rate differences.

08:59 (IST): Global uncertainties weigh

Mandar Pitale, Head of Financial Markets at SBM Bank (India), said the prevailing growth-inflation mix suggested risks to economic growth were more pronounced while inflation was expected to remain manageable in the near term.

"This coupled with elevated global uncertainties, may result in MPC not considering the rate hike option in a hurry during the forthcoming MPC meeting in August," he said.

08:33 (IST): What housing sector wants

Pradeep Aggarwal, Founder and Chairman of Signature Global, said the upcoming meeting was taking place amid elevated global uncertainty arising from geopolitical tensions, trade disruptions, and volatile commodity prices.

He said the current low interest-rate environment had encouraged first-time and end-use homebuyers to enter the housing market. "Maintaining this supportive policy stance will help sustain housing demand, strengthen allied industries, and continue contributing meaningfully to India's economic growth," Aggarwal said.

Breathing room for the MPC

Ranen Banerjee, Partner and Leader of Economic Advisory at PwC India, said the US Federal Reserve was pausing and crude oil prices remained under pressure from their highs. With inflation still within the target band, he expected the MPC to wait and watch at the meeting.

08:12 (IST): Why no hurry for rate hikes

Mandar Pitale, Head of Financial Markets at SBM Bank (India), said growth risks were more pronounced while inflation was expected to remain manageable in the near term.

"This coupled with elevated global uncertainties, may result in MPC not considering the rate hike option in a hurry during the forthcoming MPC meeting in August," he said.

08:11 (IST): RBI decisions to continue tracking data

D K Srivastav, Chief Policy Advisor at EY India, said India's GDP growth for the first quarter was likely to be in the range of 7.1% to 7.3%. He noted that average CPI inflation during April-June remained close to the MPC's 4% medium-term target and expected the repo rate to remain unchanged.

He said future RBI policy decisions would remain data-dependent given continuing uncertainty about crude oil prices linked to the Middle East situation.

08:11 (IST): Neutral stance expected

Vinay Pai, Managing Director and Head of Fixed Income at Equirus Capital, said the RBI's decision was expected to be driven mainly by domestic factors such as inflation, liquidity, and economic growth. He expected a neutral, cautious policy stance rather than aggressive easing.

MPC may prefer to wait for clarity

Dipti Deshpande, Senior Director and Principal Economist at Crisil Ltd, expected the RBI to leave policy rates unchanged.

"While the MPC may acknowledge emerging inflationary risks, we believe it will prefer to wait for greater clarity on the implications of two key shocks, namely the prolonged conflict in West Asia and ongoing monsoon uncertainties, for the growth-inflation dynamic. Both factors pose risks to the growth and inflation outlook, presenting policymakers with an increasingly delicate trade-off," Deshpande said.

MPC likely to maintain status quo

Madan Sabnavis, Chief Economist at Bank of Baroda, said the policy review came amid continued global uncertainty, with little visibility on when the ongoing conflict would end. He said crude oil prices and currency movements were likely to remain volatile and difficult to predict.

He also said inflation had been inching upward as food prices rose, while growth appeared steady based on high-frequency indicators. Against this background, he expected the MPC to maintain the repo rate and stance.

India's leading insurer, Life Insurance Corporation of India (LIC), reported a 23% year-on-year (YoY) increase in standalone net profit to Rs 13,492 crore in the first quarter of FY27, compared with Rs 10,986 crore a year earlier.

Net premium income for the quarter rose 7% YoY to Rs 1.27 lakh crore. LIC continued to lead the Indian life insurance market, with an overall 60.1% share of first-year premium income, according to IRDAI data. Its market share was 38.89% in individual business and 70.9% in group business.

LIC's total individual business premium increased 6% to Rs 75,416 crore from Rs 71,474 crore in the year-ago quarter. Group business premium income rose 9% to Rs 51,834 crore from Rs 47,726 crore.

The insurer sold 31.02 lakh policies in the individual segment, compared with 30.4 lakh in the same period last year, a 2% increase. On an annualised premium equivalent (APE) basis, total premium stood at Rs 13,692 crore in Q1 FY27. Individual business accounted for Rs 7,532 crore, or 55%, while group business contributed Rs 6,160 crore, or 45%.

LIC's value of new business (VNB) rose 61% to Rs 3,136 crore from Rs 1,944 crore a year earlier. Net VNB margin expanded by 750 basis points to 22.9% from 15.4%.

Within individual business, participating products accounted for 67.51% of APE, or Rs 5,085 crore. Non-participating products contributed 32.49%, or Rs 2,447 crore. Non-par APE increased 14% from Rs 2,142 crore in the June quarter last year, and its share of individual business APE rose to 32.49% from 30.34%.

The increase in VNB and margin reflects LIC's continued shift toward a better product mix.

LIC's assets under management rose 4% YoY to Rs 59.39 lakh crore as of June 30, 2026, from Rs 57.05 lakh crore a year earlier.

The solvency ratio improved to 2.42 from 2.17 in the same quarter last year. The overall expense ratio was 10.63%, compared with 10.47% in Q1 FY26, an increase of 16 basis points. Yield on investments in the policyholders' fund, excluding unrealised gains, was 8.28%, compared with 8.45% a year earlier.

Persistency ratios were mixed. On a premium basis, the 13th-month persistency ratio was 75.33%, compared with 75.63% last year. The 61st-month ratio was 61.12%, compared with 63.85%.

On a number-of-policies basis, the 13th-month persistency ratio improved to 66.45% from 64.35%, while the 61st-month ratio declined to 48.74% from 51.12%.

LIC CEO and Managing Director R. Doraiswamy said the insurer maintained its leadership in individual and group business despite rising competition. "Our overall market share by First Year Premium Income was 60.10% for the first quarter of FY 2026-27 and this fits in well with our market share strategy," he said.

He said the rise in VNB and margin reflected LIC's product diversification and distribution strategy. "What gives us even more happiness is that our VNB has grown by 61% plus and our VNB margin has expanded by 7.5% to 22.90% this year," he said.

When can an ITR refund arrive?

Filing an income tax return early does not guarantee an immediate refund, but it may help the return enter processing sooner and avoids the rush near the deadline. Processing starts only after the return is successfully e-verified.

The Centralised Processing Centre checks the return against Form 26AS, AIS and TIS. A pre-validated bank account is needed for an electronic refund. Returns with complex income, large claims, missing information or mismatches may need extra checks and take longer.

What can delay a refund?

Common causes include late e-verification, mismatched tax-credit records, incorrect or unvalidated bank details, and complex disclosures such as capital gains, business income, foreign assets or virtual digital assets. Taxpayers should review notices and respond with supporting records.

Experts cited in the report advise taxpayers to report income and tax deducted accurately, keep documents such as payslips and Form 16, and respond to mismatch notices instead of ignoring them. The form type alone does not decide the timeline; the information and checks required can affect processing.

Claiming TDS credit when the deductor has not paid it

A taxpayer may find that tax was deducted from income but the credit is missing from Form 26AS or AIS because the employer or other deductor did not deposit it with the government. The article explains that taxpayers should not automatically give up a credit for tax that was actually deducted.

Experts recommend asking the deductor to deposit the tax and file the TDS statement. Keep payslips, Form 16 or Form 16A, bank statements showing the net payment, TDS certificates, and correspondence as evidence. Since ITR forms are annexure-less, supporting records generally cannot be attached with the return itself.

If a mismatch notice arrives

The CPC may raise a demand when claimed TDS does not match its records. A taxpayer can respond with evidence and request the credit. The article cites Section 205 of the Income Tax Act and related CBDT instructions as protection against recovering tax from a taxpayer when it has already been deducted, subject to the facts and applicable law.

Do not ignore a notice or pay a disputed demand without review. Respond or file a rectification request with supporting documents, and seek professional advice if the credit is denied.

LIC reported consolidated net profit of Rs 23,467 crore for Q4 FY26, up 23% year-on-year from Rs 19,039 crore. For FY26, net profit rose 19% to Rs 57,453 crore from Rs 48,320 crore.

Annual net premium income increased 10% to Rs 5.38 lakh crore, compared with Rs 4.90 lakh crore in FY25. The report attributes the quarterly profit growth to stronger premium income and investment performance.

LIC reported consolidated net profit of Rs 23,467 crore for the March quarter of FY26, up 23% year-on-year from Rs 19,039 crore. It also announced a dividend of Rs 10 per share.

The insurer's solvency ratio improved to 2.35 from 2.11 a year earlier. Assets under management grew 5.1% to Rs 57.3 lakh crore, while value of new business rose 41.63% to Rs 14,179 crore.

The report also noted a decline in LIC's 13th-month persistency ratio to 67.77% from 68.62% a year earlier, alongside the reported improvements in solvency and new-business value.

LIC CEO and MD R. Doraiswamy described FY26 as a strong year, citing growth across business lines, an individual-business non-par APE share above 35%, a VNB margin above 21%, and growth in banca and alternate channels.

Global insurers are increasing their interest in India after the government approved up to 100% foreign direct investment in insurance under the automatic route, subject to regulatory requirements. The report describes this as a major change for a market that remains underinsured.

Examples include an Allianz and Jio Financial Services insurance joint venture, Prudential's proposed 75% stake in Bharti Life Insurance valued at nearly Rs 4,200 crore, and reports that HSBC and South Korean financial groups are exploring opportunities.

Why India is attracting insurers

The report points to policy changes, low insurance penetration, rising incomes, a growing middle class, and demand across life, health, pensions, annuities, motor and reinsurance. It also notes that partnerships and acquisitions can give international companies access to established local distribution networks.

Potential effects include more capital, competition, technology and product development, and additional reinsurance capacity. The article also cautions that profitability, claims costs, customer acquisition, persistency, and the time needed to build scale remain challenges.

The report frames the reform as part of a longer-term effort to expand insurance access, including the goal of "Insurance for All by 2047."

The Finance Ministry directed state-run banks, insurers, and financial institutions to adopt cost-cutting measures as part of a wider austerity effort. Institutions named in the report include SBI, Bank of Baroda, and LIC.

The measures include holding meetings and reviews by video conference unless in-person attendance is essential, limiting overseas travel by senior executives, and encouraging a phased move from petrol and diesel vehicles to electric vehicles.

The report places the order amid concerns about global tensions, economic growth, inflation, and pressure on the rupee.