Life Insurance Corporation of India’s (LIC) board has greenlit an investment of up to 10% in a new mortgage securitization company promoted by housing body National Housing Bank (NHB).
The state-run insurer will acquire equity stake in multiple tranches in the NHB-backed firm focused on residential mortgage-backed securities. However, LIC did not disclose further details of the target company.
This marks LIC’s foray into the mortgage security space beyond subsidiary LIC Housing Finance, one of India’s leading housing finance firms it took public in 1994.
The fresh capital infusion will aid the specialized mortgage firm being set up by NHB to boost funding access for India’s housing market via instruments like pooled loans.
As the nation’s largest insurer, LIC is aligning itself with government efforts to deepen residential funding avenues. The move comes as alternative assets like mortgage securities gain policy attention.