GBI – EM Index
The Global Bond Index – Emerging Markets (GBI-EM) managed by JP Morgan, the world’s largest bank by market value and an American multinational financial services firm with assets under management of trillions of dollars, announced on Thursday that Indian government bonds will also be included in the index. The decision to include India in the bond index came after a decade of deliberations.
Indian bonds will also be included in the index in a phased manner over a period of 10 months from June 28, 2024. A maximum weightage of 10 per cent is given to Indian bonds in the GBI-EM index. With this, more foreign investment will reach the Indian capital market and liquidity in the bond market will be an advantage.
PNB Gilts is a non-banking financial institution in the country. It is a subsidiary of Punjab National Bank, a leading public sector banking institution. It helps the government to raise resources from the market. For this purpose it underwrites government bonds and trades in various fixed income instruments like treasury bill, state development loan, corporate bond etc.
Currently, the market value of PNB Gilts is 1,470 crores. The book value of the counterparty is Rs.70. The dividend yield of the continuously paying stock is 6.15 percent. Punjab National Bank holds 74.07 percent shares of the company. PNB Gilt’s revenue in the last financial year was 926 crores. The net loss has been brought down to 77 crores.