LIC IPO on course; crude, Ukraine headwinds to financial stability: FM

Finance minister Nirmala Sitharaman on Tuesday said that the listing of the public sector insurer, Life Insurance Corporation (LIC), will go ahead as planned even as the shockwaves emerging from the geo-political situation in Ukraine has kept the domestic equity market on the tenterhooks for several sessions now.

Sitharaman, meanwhile, also agreed that the spiralling crude oil prices and the geo–political situation pose headwinds to the domestic financial stability.

Being asked whether the situation is conducive enough for the listing during a post-budget press conference in Mumbai, Sitharaman said, "LIC IPO has been enthusiastically and eagerly awaited. We are on course and moving forward. I can see that now that the DRHP is out, there is a buzz and interest in the market. We will be going ahead with it."

On whether the listing will happen in the current fiscal on the back of the global equity rout dampening the sentiments, FM said DRHPs are not issued two years in advance.

Sitharaman, meanwhile, pointing out that the Ukraine situation coupled with the spiralling crude prices are headwinds to the financial stability. "FSDC meeting agreed that crude and the international worrisome situation pose challenges to the domestic financial stability. Crude is one of the very important considerations. We will keep a watch," Sitharaman said.

FM held a slew of meetings in Mumbai along with chairing the Financial Stability and Development Council (FSDC) meeting. "The Council noted that government and all regulators need to maintain constant vigil on the financial conditions and functioning of important financial institutions, especially considering that it could expose financial vulnerabilities in the medium and long-term. The Council discussed measures required for further development of the financial sector and to achieve an inclusive economic growth with macroeconomic stability," a finance ministry release said.

Sitharaman also held post-budget meeting with heads of banks, NBFCs and financial institutions.