Mumbai: Life Insurance Corporation of India (LIC) chairman S K Roy is understood to have put in his papers two years before his term ends. According to sources, the chief executive decided to resign due to personal reasons.
Roy was appointed as chairman in June 2013 for a term of five years. The position of LIC chairman is of the rank of secretary in the finance ministry — the same as the chairman of State Bank of India.
Sources said that Roy had been talking about resigning in recent weeks. He had also been complaining about being poorly paid. The corporation's chairman is paid a gross salary of Rs 1.7 lakh per month. The corporation has assets worth over Rs 21 lakh crore and is more than 20 times larger than the next life insurance company.
LIC's huge cash stash has come to the aid of the government in the past in recapitalizing public sector banks and in stemming volatility in the capital market. In recent years, the government has been using the LIC funds for boosting investments in infrastructure.
Roy could not be reached for comments and text messages to the top management did not elicit any response. LIC sources ruled out any irregularity, saying that Roy adopted a cautious committee approach to investments. Besides being the executive chairman of LIC, Roy is also on the board of LIC group companies and the corporation's nominee director in some private companies.
In terms of performance, the corporation has seen its sales pick up during the fourth quarter of FY16 and in the first quarter of the current fiscal.
Sources said that the government might not relieve Roy immediately. Appointing a new chairman would take a few months as the process involves shortlisting eligible candidates, interviewing them and finally obtaining all clearances. In the absence of a chairman, the senior-most managing director of the corporation is usually appointed as current-incharge (CIC).
While the CIC is empowered to oversee day-to-day operations, he is not in a position to take policy decisions. The two senior managing directors in the corporation are V K Sharma and Usha Sangwan. Although both were appointed on the same day, Sharma is understood to be senior.
Top CommentThe government has been Pushing LIC to invest in failed PSUs and PSBs. Cash stashed from Public by selling them overpriced Insurance is being squandered on PSBs so that they can give loans to Modi Cronies.Brown American
Roy had joined LIC in 1981 as a direct recruit officer. Prior to taking charge as chairman, he was managing director of the corporation.