Investor of last resort

LIC's bailout of IL&FS makes little sense

Yet another troubled company will be bailed out by Life Insurance Corporation of India (LIC), India’s largest insurer. The infrastructure major Infrastructure Leasing and Financial Services or IL&FS will see a steadily larger role for LIC in its operations and financing. IL&FS also has a maze of closely held companies which, like their parent, are mired in debt. Yet it is systemically important, and thus it is supposed it needs propping up — especially since it has struggled since 2011 to make even a small profit. LIC, which owns about 25 per cent and is IL&FS’ largest shareholder, may be