It refers to reports about market-share of LIC of India in life-insurance first time falling below 70-percent. But remedial steps can raise market-share of important Public-Sector-Undertaking considerably apart from reducing overheads to increase profitability.
LIC of India having acquired 51-percent stake in public-sector IDBI Bank should change name of the Bank to LIC Bank of India with merger of several small public-sector banks in this newly suggested Bank, like public-sector Dena Bank and Vijaya Bank are to merge into another public-sector Bank of Baroda. Then newly named LIC Bank of India can be yet other anchor-bank where other public-sector banks are planned to be merged in future.
It provide a single window to customers for banking and insurance which may make suggested LIC Bank of India, a favorite choice for banking. Every branch of this Bank then automatically become a branch of LIC of India also, where business of nearing branches of LIC of India can be transferred. Presently LIC of India has too many branches with even some branches located in the same premises. LIC of India rather should go for a mega-merger plan for its nearing branches which will save huge because of saving on rent, salary-bill and other overheads.
It is also time that four public-sector insurance-companies engaged in General Insurance may be unified in one single company like LIC of India was created by merging 245 companies engaged in life-insurance.
MADHU AGRAWAL