For the week ended July 23, 2016:
- It was focus finance for India in the past week. The Ministry of Finance released the latest data on Non Performing Assets (NPAs) for 2015-16, as per which, Public Sector Unit (PSU) banks have seen a significant 4 percentage point jump in NPAs . This is much higher than the 2 percentage point increase seen for the banking sector as a whole.
- The centre also released the latest progress report on the Atal Pension Yojana, as per which the government has disbursed INR 1bn as co-contribution under the scheme, so far, to 1.7mn eligible subscribers.
- On the policy front, the first annual meeting of the BRICS New Development Bank took place, where India stressed on providing funding for projects in sectors like energy, transport and urban infrastructure.
- As per the IMF’s latest World Economic Outlook’s latest update, the global economy is now expected to grow at a slightly slower pace than that envisaged during the April 2016 update, on account of uncertainty post the Brexit. Expectedly, the fund has slashed the UK’s growth prospects most in this scenario. Emerging economies are expected to be unscathed.
- In keeping track of the Brexit impact on exchange rate, we find that this week, on average, saw limited exchange rate changes across major currencies. However, the pound sterling saw significant movements in both directions on a daily basis.
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