GCC Employment in India Expected to Reach 2.8 Million by 2030: Nirmala Sitharaman

On July 14, 2025, Finance Minister Nirmala Sitharaman announced that Global Capability Centres (GCCs) in India are projected to employ 2.8 million people by 2030, up from the current 2.16 million. She shared these insights at a CII (Confederation of Indian Industry) event titled ‘The GCC Opportunity in India’.

According to her, India hosts over 32% of the global GCC talent, and the sector contributes $68 billion to the economy as gross value added (GVA), equivalent to 1.6% of national GDP. By 2030, this contribution could rise to $150–200 billion.

She also highlighted that, on average, one new GCC was set up every week in 2024. Notably, the growth in engineering research and development (ER&D) GCCs has outpaced the overall GCC growth rate by 1.3 times over the past five years, indicating a trend toward high-value, complex work being done from India. GCCs are no longer just for basic delivery or support services—they're now deeply involved in strategic business functions and product innovation.

New PF Withdrawal Rules Offer Major Relief to First-Time Homebuyers

On July 13, 2025, the Indian government introduced revised Employees’ Provident Fund (EPF) withdrawal rules aimed at supporting salaried individuals looking to buy their first home. The changes, under the newly added Para 68-BD of the EPF Scheme, 1952, provide greater financial flexibility and accessibility.

As per the update, EPFO members can now withdraw up to 90% of their EPF balance for housing-related expenses, including down payments, construction costs, or EMIs. Importantly, the eligibility period has been reduced from five years to three years from the date of account opening, making funds accessible sooner.

However, this housing-related withdrawal is permitted only once in a lifetime per member. In addition to housing, the revised rules also simplify and streamline other aspects of PF withdrawal, offering relief to a broader section of employees.

Finance Minister Urges PSU Banks to Boost Credit Growth, Maintain Profits

 

Finance Minister Nirmala Sitharaman, in a meeting with heads of Public Sector Banks (PSBs) on Friday, urged them to leverage the Reserve Bank of India’s recent 50 basis points rate cut to accelerate lending towards the productive sectors of the economy. Sources reported that the Finance Minister asked PSBs to maintain the profitability momentum in FY26, building on their strong performance last year.

The cumulative net profit of 12 PSBs surged to Rs 1.78 lakh crore in FY25, marking a 26% rise compared to the previous fiscal. In absolute terms, this meant a profit increase of about Rs 37,100 crore. Sitharaman also emphasised the importance of financial inclusion, directing banks to onboard more customers under government schemes to ensure broader credit outreach.
On June 6, the RBI’s monetary policy committee, led by Governor Sanjay Malhotra, cut the benchmark repo rate by 50 basis points to 5.5%. The minister highlighted that PSBs should maintain or exceed their FY25 credit growth levels this year, using the rate cut as an opportunity to fuel economic growth and support sectors needing capital infusion.

Blackstone’s ASK to Hire 70 Bankers Amid Surge in India’s Wealth Management Sector

 

Blackstone Inc.’s ASK Group plans to strengthen its foothold in India’s booming wealth management sector by hiring 70 new private bankers. This expansion will increase the ASK Private Wealth unit’s total banker strength to 175 by March next year, up from about 105 at present, as confirmed by Rajesh Saluja, CEO and co-founder of the business, in an interview this week.
India is witnessing a sharp rise in its wealthy population, driving a surge in demand for wealth management services. This has led to the emergence of several new firms competing to manage these assets, while established players like ASK Private Wealth, Bain Capital-backed 360 One WAM Ltd, and PAG-backed Nuvama Wealth Management Ltd are rapidly expanding their teams to retain market leadership.
Experts believe that the wealth management space in India will see intense competition in the coming years, with firms vying to acquire and retain high-net-worth individual (HNI) clients. Blackstone’s ASK Group aims to capitalise on this rising demand by nearly doubling its team size to cater effectively to the growing client base.

RBI Needs to Infuse Up to ₹1 Trillion by March-End to Bridge Liquidity Gap: Analysts

 1 February 2025

Analysts have recommended that the Reserve Bank of India (RBI) should inject up to ₹1 trillion (~US$11.5 billion) into the banking system by the end of March 2025 to address an ongoing liquidity deficit. As of February 20, the banking system faced a shortage of about ₹1.7 trillion, despite prior liquidity injections via bond purchases and dollar–rupee swaps. The RBI has taken several steps, including long-term repo operations, interest rate reductions, bond purchases worth ₹1.39 trillion, and ₹440 billion via currency swaps. However, persistent system-level deficiency signals a need for further intervention. Analysts suggest that the RBI may expand its open market operations (OMO), increase non-resident Indian (NRI) deposit inflows, and roll over maturing repos. The central bank may also consider revising its policy framework, including daily fixed funding windows or adopting the Secured Overnight Rupee Rate (SORR) as its operational benchmark. These measures aim to stabilise liquidity, help maintain repo rates and support sustained credit growth going into FY26.

Gold loans Updates

 The recent surge in gold prices has fueled a significant increase in gold loan demand across India. According to CRISIL Ratings, June 2024 saw a substantial 20 percent rise in gold loan applications compared to May 2024, highlighting the growing popularity of this financial option. Gold loans offer a quick and convenient way to access funds in emergencies, allowing borrowers to avoid selling their gold assets. These loans are often more affordable than personal loans because they are secured by gold, resulting in lower interest rates. Paisabazaar data reveals that the most competitive gold loan interest rates start at 8.8 percent. Below is a list of the top ten banks and non-banking financial companies (NBFCs) offering the lowest interest rates on gold loans:

1. Indian Bank: Offers gold loans with an interest rate starting at 8.8 percent for a loan amount of Rs 5 lakh over a 2-year term, resulting in a monthly EMI of Rs 22,796.

2. ICICI Bank: Provides gold loans at an interest rate from 9 percent onwards for Rs 5 lakh with a 2-year tenure, translating to a monthly EMI of Rs 22,842. Canara Bank also offers similar rates.

3. State Bank of India (SBI): As the largest public sector bank, SBI offers gold loans starting at 9.05 percent for Rs 5 lakh over a 2-year period, with a monthly EMI of Rs 22,853.

   

4. HDFC Bank: Known for its competitive rates, HDFC Bank offers gold loans beginning at 9.10 percent for Rs 5 lakh with a 2-year tenure, resulting in a monthly EMI of Rs 22,865.

5. Punjab National Bank (PNB): Offers gold loans with an interest rate starting at 9.25 percent for a Rs 5 lakh loan over a 2-year period, resulting in a monthly EMI of Rs 22,899.

6. CSB Bank: Provides gold loans at an interest rate starting at 9.49 percent for Rs 5 lakh over 2 years, translating to a monthly EMI of Rs 22,954.

7. DCB Bank: Offers gold loans starting at 9.55 percent for Rs 5 lakh with a 2-year tenure, resulting in a monthly EMI of Rs 22,968.

8. Manappuram Finance: This leading NBFC offers gold loans with an interest rate starting at 9.9 percent for Rs 5 lakh over 2 years, translating to a monthly EMI of Rs 23,049.

9. Muthoot Finance: Provides gold loans at an interest rate starting at 10.5 percent for Rs 5 lakh with a 2-year tenure, resulting in a monthly EMI of Rs 23,141.

This information is sourced from the official websites of the respective banks and NBFCs as of August 20, 2024. The list is arranged in ascending order of interest rates, with the institution offering the lowest rate listed first. The EMI calculations assume zero processing and other charges for simplicity.

Decline in Loan-to-Deposit Ratios: An Analysis of RBI Policies and Bank Profitability

The recent decline in the loan-to-deposit ratio (LDR) within the banking sector has been attributed to two main factors: reduced money creation by the Reserve Bank of India (RBI) and increased bank profits, according to a Nomura report.

The primary factor contributing to the reduced LDR is the significant drop in net money creation by the RBI during the fiscal year 2023-24. The cumulative net fresh money creation for this period was only Rs 0.6 trillion, a sharp decrease compared to the Rs 20 trillion created in the three fiscal years prior (FY20-22). This reflects a substantial reduction in money supply compared to previous years. In FY23, net money creation by the RBI was nearly neutral, recording a -1 percent change, with a modest +1 percent increase in FY24, against a historical average of +3 percent and +4-5 percent in the preceding three years. This moderation in money supply, which was a discretionary action by the RBI, has restricted banks' ability to expand their lending relative to deposits.

Another significant factor affecting the LDR is the marked increase in bank profits over the past two years. In FY24, the total profit of banks amounted to 1.8 percent of the previous year's deposits, a notable rise from the average of 0.1 percent observed between FY16-20. This increase in profitability, while a sign of strong financial health, has led to a decrease in deposits as banks allocate a larger portion of these profits elsewhere. The relationship between bank profits and deposits is inherently linked, as banks' profits are derived from the funds deposited by customers. Thus, rising profits necessitate adjustments in the balance sheet, often resulting in a reduction of the deposit base and further impacting the LDR.

The elevated LDR should be viewed as a cyclical phenomenon rather than a systemic problem. The current factors influencing the LDR are beyond the banks' control. The lower money creation by the RBI represents a temporary issue expected to correct over time, while the increase in bank profits indicates a positive trend rather than a fundamental problem. The argument that banks are failing to mobilize deposits or that money is being diverted to other sectors is misplaced. Instead, the flows into capital markets and the relatively stable growth in currency in circulation over the past two years do not directly impact the system's deposits.