Letter to BS: Exposure to public sector undertakings hurts LIC's returns

The absence of functional freedom to work within the contours of mandated responsibilities stands in the way of professional fund management by statutory bodies and PSUs including public sector banks

This refers to Krishna Kant’s report “Large exposure to PSUs hurts LIC’s returns” (July 19). One wishes that all stakeholders join in and debate the issue of resource management by the Government of India, the state governments and public sector undertakings (PSU), banks both in the public and private sectors and other organisations that source public savings for their funding/business needs. It would be fallacious to compare every investment with the equity investment in Sensex shares. But there is a case for a reasonable positive return on investment of funds raised from the public, for the absence of which, there