The Life Insurance Corporation of India (LIC) is optimistic about reaching a decision on acquiring a stake in a health insurance company by the end of March, its chief executive, Siddhartha Mohanty, stated on Tuesday.

"I am very hopeful that within this financial year, before March 31, a decision will be made," Mohanty, who leads India's largest insurer, said.

However, in a later exchange filing, LIC clarified that discussions were still in an advanced stage, and no legally binding agreement had been signed.

"There is no certainty regarding the execution or finalization of the potential deal," the statement read.

Mohanty emphasized that LIC is not seeking a majority stake in the health insurance firm, though he refrained from disclosing specific details.

"LIC will not hold a 51% stake. We are considering multiple options," he said.

The move comes as competition in India's health insurance sector intensifies, with private insurers expanding their footprint to meet rising consumer demand.

Currently, LIC does not offer standalone health insurance products, focusing instead on life insurance, pension plans, and investment-linked policies. Entering the health insurance market via a stake purchase would position it against established players like Star Health Insurance, Aditya Birla Health Insurance, Niva Bupa Health Insurance, and Care Health Insurance.

In a separate development, LIC is engaged in discussions with the Reserve Bank of India (RBI) regarding the issuance of longer-tenure bonds.

While India currently issues bonds with maturities of 20, 30, and 40 years, LIC is advocating for 50-year and even 100-year instruments to support long-term investments.

"Our team regularly engages with the RBI on this matter, and they are actively considering it," Mohanty noted.