The 98% growth rate that LIC Housing Finance witnessed in the past few quarters came out to be a surprise for the rival companies. The loan book stuffed up from Rs 21,936 crores to Rs43, 385 crores since April 1, 2008 to September 30, 2010, thanks to its director and chief executive officer R Ramachandran Nair.
Consequently, the share prices also saw a rising trend of 368% when they increased to Rs1, 308.15 from Rs 279.6.
But all this was momentary because post home loan scam and arrest of 58-year-old R Ramachandran Nair, the shares witnessed a drastic fall of 18% to Rs 1068.55. The CBI arrest of R Ramachandran Nair has seemed to hit the faith of the shareholders of the Life Insurance Corporation of India.
Nair began his career in 1977 with LIC and then on, held many prestigious designations.
The chairman of Life Insurance Corporation of India, TS Vijayan described the developing position of the company to the seniors and employees of the company on Wednesday.
After witnessing the Commonwealth Games 2010 corruption and 2G corruption in politics, the LIC housing Finance scam seems to be a yet another corporate corruption side of India.
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