Bringing you up to speed on the financial world this week.
- Introduction of Sovereign Gold Bond Scheme
The Government has recently announced the Sovereign Gold Bond Scheme in an attempt to reduce the demand for physical gold. The Gold Bonds will be issued by the Reserve Bank of India. The Scheme will be launched on November 30.
- India to Sell Rupee Bonds
To build long-term finances for infrastructure in India, the Union Government has launched Rupee Bonds in some countries. The Government’s initiative was announced at the India-Singapore Economic Convention. This will make India one of the most open economies for foreign direct investments.
- Increase Government Employees Wages Annually: 7th Pay Commission
The Chairman of the Seventh Central Pay Commission, Justice AK Mathur has suggested that the Central Government should increase government employees’ wages annually. This would lead to the discontinuation of appointing Pay Commissions every 10 years. The Commission also recommended a 23.5% hike in government wages.
- NRI Deposits in Indian Banks See 55% Increase
Recent RBI reports reveal that deposits by NRIs in Indian banks for the first half of the current fiscal increased by 55% year-on-year. As of September 30, NRI account holders had deposited $121.8Bn in local banks.
- Bad Loans by Public Sector Banks Rise 27% in a Year, Student Loans Slow
Due to bad loans, several public sector banks have reported a 26.8% increase in non-performing assets over the year ending September 2015. This reflects a 10% rise from the 16.9% growth in bad loans from the same period one year ago. An increase in non-performing assets in educational loans has led to a slowdown in the issuance of student loans by banks. A few banks that have reported a major shares in bad loans are Bank of Baroda, Indian Overseas Bank, Bank of India, Punjab National Bank and State Bank of India.