The government on Saturday appointed Siddhartha Mohanty, who is currently serving as the managing director (MD) of Life Insurance Corporation (LIC), as its Acting Chairperson for three months from March 14.
M.R. Kumar, who is the Chairperson of the LIC, will complete his term on March 13. LIC is the largest financial institution in the country with total assets under management (AUM) of over Rs 41.66 lakh crore (as of September 2022).
“We advise that in view of the completion of term of Kumar as Chairperson of LIC of India, on March 13, 2023, the Ministry of Finance has conveyed the approval of the Competent Authority, for entrusting financial and administrative powers and functions of Chairperson, LIC in the interim to Siddhartha Mohanty, Managing Director,” LIC said in an exchange filing.
“This is in addition to his own duties, for a period of three months, with effect from March 14, 2023, or till assumption of the charge by the regular appointee to the said post, or until further orders, whichever is the earliest,” LIC said.
While there was speculation that Kumar will get one more extension, the government has now decided to go for a new Chairperson. LIC’s investment in Adani companies was under the lens as the market value of Adani shares fell below the purchase price after Hindenburg Research came out with a report on the Adani group. Apart from Mohanty, LIC has two more MDs – Mini Ipe and BC Patnaik. Raj Kumar’s term as MD ended on January 14, 2023.
The Financial Services Institutions Bureau (FSIB) is expected to finalise the name of the new Chairperson for LIC in the coming weeks.
Kumar has got two extensions — one from July 2021 to March 2022 and one from April 2022 to March 2023 – mainly to get LIC listed on the stock exchange. To enable this, the government amended the LIC (Staff) regulations and increased the superannuation age to 62 for the chairman.
Post the listing of LIC in May 2022, the stock has taken a beating by falling nearly 37 per cent and it is now trading at Rs 595.55 on the exchanges as against the IPO price of Rs 949 per share, giving rise to investor concerns.
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