State-run Life Insurance Corporation of India (LIC) chairman S K Roy has reportedly tendered resignation two years before his term ends. Sources said, Roy cited personal reasons behind resorting to step down as LIC chief.
Roy was appointed as chairman in June 2013 for five years during previous government. The position of LIC chairman is of the rank of secretary in the finance ministry. The finance ministry will send his resignation to the Union cabinet’s appointments committee for acceptance, an official said.
If sources are to be believed, LIC chairman has put down his papers due to poor salary. He also had been talking about his resignation for the past few weeks. Notably, monthly remuneration of LIC chairman is said to be Rs 1.7 lakh. LIC possess assets worth over Rs 21 lakh crore and is more than 20 times larger than the next life insurance company.
Experts said that the Government is recapitalising state-run banks by using massive cash stash of the corporation. That apart, Government is also stemming volatility in the capital market. LIC funds have also been utilised for boosting investments in infrastructure.
Exact reason behind Roy’s sudden exit has not been ascertained as yet. He could not be reached for comments on the development.
LIC Chairman S K Roy delivers speech at The BFSI Leadership Summit, 2015
Sources confided to The Banking & Finance Post magazine that there was no irregularity in the functioning of the LIC chief as he adopted a cautious committee approach to investments. Apart from holding the post of executive chairman of LIC, Roy is also on the board of LIC group companies.
Roy’s resignation is the second high-profile exit of a top brass, coming three days after RBI chief Raghuram Rajan announced that he will not seek a second term.