More than Rs 820 cr expected to be realised through 5th tranche of Sovereign Gold Bonds

The amount realised through the 5th tranche of Sovereign Gold Bond (SGB) Scheme, is expected to cross Rs 820 crore. This was mobilised through over two lakh applications representing around 2.37 tonnes of gold. These numbers are likely to go-up further as the receiving offices are still in the process of uploading information of huge rush of applications received on the last day. 

The aggressive marketing of the product by Govt of India, including through its receiving offices, namely Banks, Post Offices, NSE and BSE helped in mobilising such encouraging response. SBI at Rs 245 crore subscription and Bank of India at Rs 56 crore subscription were the top performers. 

The post offices did their bit by attracting maximum number, around 22,000 applicants. The total mobilisation by Post Offices is expected at around Rs 15-20 crore. The 5th Tranche of Sovereign Gold Bond (SGB) Scheme was open from 1st to9th September, 2016.

The issue price of the Sovereign Gold Bond in 5th tranche worked-out to a still higher level Rs 3,150 per gram of gold based on the average of closing price of gold of 999 purity for the week August 22 to 26, 2016, as published by the India Bullion and Jewellers Association Ltd. (IBJA).

The Government will come-up with more tranches in 2016-17. The next tranche of SGB is expected around the third week of October, prior to Diwali. The next tranche is expected to come up with additional features to attract consumers even more.