LIC’s valuation has dropped by ₹965 crore due to a fall in IndusInd Bank’s share price, causing a significant hit to LIC’s portfolio. Experts attribute the sharp decline in the bank’s share price to various factors, including asset quality and net interest margin concerns. LIC held a 5.23% stake in the bank, and the drop in its share value has severely impacted LIC’s overall financial standing.

As a result, LIC’s market value has decreased from ₹3,398 crore to ₹2,434 crore. This decline has raised concerns about the insurer’s portfolio performance and its exposure to banking stocks. The fall in IndusInd Bank’s share price serves as a reminder of the risks financial institutions face due to market volatility.