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CURRENT AFFAIRS : BANKING, FINANCE & BUSINESS

Financial Stability Report Reveals Financial System Remains Strong Despite Global Uncertainty

• Despite global uncertainties, India’s financial system remains resilient and well capitalised, as per the Reserve Bank of India’s (RBI) Financial Stability Report (FSR).
• Scheduled Commercial Banks (SCBs) have improved asset quality, with gross non-performing assets (GNPA) near multi-decade lows.
• Stress tests indicate that banks’ capital adequacy ratios (CRAR) will remain comfortably above minimum regulatory requirements even under severe adverse scenarios.
• RBI Governor Sanjay Malhotra highlighted the strength of banking and non-banking sectors, with healthy balance sheets supporting economic stability.
• Structural challenges include trade fragmentation, rapid technological disruption, climate change, and geopolitical tensions, making economic forecasts difficult and policy interventions challenging.
• The stress tests assess banks’ capital under:
• Baseline scenario
• Two adverse macroeconomic scenarios over a two-year horizon, factoring in credit risk, market risk, and interest rate risk.

Key Highlights :

• Gross NPA ratio may rise slightly from 2.3% (March 2025) to:
• 2.5% under baseline by March 2027,
• 5.6% in first adverse case (more volatile geopolitical environment),
• 5.3% in the second adverse case (slowed global growth).
• Capital Adequacy Ratio (CRAR) projections:
• Baseline: dip from 17.2% (March 2025) to 17% (March 2027),
• Adverse case 1: 14.2%,
• Adverse case 2: 14.6%,
• Minimum regulatory CRAR requirement is 9%, which banks will maintain even under stress.
• Common Equity Tier-1 (CET1) Capital Ratio:
• Baseline increase from 14.6% to 15.2%,
• Adverse case 1: fall to 12.5%,
• Adverse case 2: fall to 12.9%,
• Regulatory minimum CET1 is 5.5%.

Securities and Exchange Board of India Permits Intermediaries to Use NPCI’s ‘e-KYC Setu System’ for Digital KYC Processes

• The Securities and Exchange Board of India (SEBI) has approved registered market intermediaries to use the NPCI’s ‘e-KYC Setu System’ for performing digital KYC.
• Previously, intermediaries used only the Aadhaar-based e-KYC services of the Unique Identification Authority of India (UIDAI) in the securities market.
• The approval aims to facilitate ease of doing business and simplify the customer onboarding process.
• The ‘e-KYC Setu System’ is developed by NPCI in collaboration with UIDAI to enable digitization of customer onboarding.
• This system provides an alternate mechanism for Aadhaar-based e-KYC authentication.
• The e-KYC Setu allows identity verification by reporting entities (REs) regulated by the Reserve Bank of India (RBI) without disclosing the individual’s Aadhaar number.
• It helps reduce operational complexities and the burden of managing Aadhaar data for regulated entities.
• The system offers flexibility to regulated entities to select suitable technology platforms for capturing Aadhaar numbers and OTPs based on their business requirements.
• Entities can onboard through NPCI’s single-window onboarding process as described on the NPCI website.

Recent News :

• In May 2025, The SEBIhas tightened and standardised the internal audit mechanism norms for Market Infrastructure Institutions (MIIs) to strengthen governance.

About SEBI :

• Established : 12 April 1988 as an executive body and was given statutory powers on 30 January 1992 through the SEBI Act, 1992
• Headquarters : Mumbai, Maharashtra
• Chairman : Tuhin Kanta Pandey
• SEBI is the regulatory body for securities and commodity markets in India under the ownership of the Ministry of Finance (MoF), GoI.

AU Small Finance Bank Teams Up with Life Insurance Corporation of India to Expand Life Insurance Services    

• AU Small Finance Bank (AU SFB) has entered into a partnership with the Life Insurance Corporation of India (LIC), the country’s largest life insurer.
• The collaboration supports the national goal of ‘Insurance for All by 2047’ by enhancing insurance penetration in rural and semi-urban areas.
• AU SFB will distribute LIC’s comprehensive range of life insurance products, including:Term insurance, Endowment plans, Whole life policies, Pension and annuity offerings, Child-specific plans.
• These products will be available across more than 2,456 AU SFB banking outlets in 21 states and 4 Union Territories, expanding LIC’s reach to underserved segments of India.
• The partnership is a milestone for AU SFB in becoming a full-spectrum financial services provider, integrating banking, protection, and long-term financial planning on one platform.
• For LIC, this tie-up provides access to a credible, customer-centric banking partner to broaden its reach.

About AU Small Finance Bank :

• AU Small Finance Bank, founded in 1996 by Sanjay Agarwal, is the largest small finance bank in India and operates as a scheduled commercial bank.
• MD & CEO : Sanjay Agarwal
• As of March 31, 2025, AU SFB serves over 1.13 crore customers, has a balance sheet size of ₹1.57 trillion, and holds a ‘AA/Stable’ credit rating.

Small Savings Scheme Interest Rates Unchanged for 7th Straight Quarter from July 1, 2025                         

• Interest rates on small savings schemes, including Public Provident Fund (PPF) and Sukanya Samriddhi Scheme (SSS), will remain unchanged for the 7th consecutive quarter starting July 1, 2025.
• Currently, there are 12 small savings schemes, including savings accounts, many offering tax benefits. These include:
• National Savings Certificates (NSC)
• Public Provident Fund (PPF)
• Sukanya Samriddhi Scheme (SSS)
• Senior Citizen Savings Scheme (SCSS)
• Interest rates on these schemes are reviewed quarterly, but most have stayed steady since July-September 2024, with minor adjustments in some.
• Retail bank deposits in India usually have a short average tenor (1.5 to 3 years), contrasting with government-backed schemes which have longer lock-in periods:
• PPF: 15 years
• Sukanya Samriddhi: up to 21 years
• Senior Citizen Savings Scheme: 5 years
• Interest rates for specific schemes effective July 1, 2025:
• Sukanya Samriddhi Scheme: 8.2%
• 3-year term deposit: 7.1%
• Public Provident Fund (PPF): 7.1%
• Post Office Savings Deposit: 4%
• Kisan Vikas Patra (KVP): 7.5%, matures in 115 months
• National Savings Certificate (NSC): 7.7% (for April-June 2025 period)
• Monthly Income Scheme (MIS): 7.4%

IIP Growth Falls to 9-Month Low of 1.2% Amid Widespread Slowdown

• India’s industrial growth fell to a 9-month low of 1.2% in May 2025, as per the Index of Industrial Production (IIP) released by the Ministry of Statistics and Programme Implementation on June 30.
• This is the lowest IIP growth since August 2024, when growth was just 0.1%.

Key Highlights :

Sector-Wise Performance:

• Manufacturing sector growth slowed sharply to 2.6% in May 2025 from:
• 5.1% in May 2024
• 3.1% in April 2025
• The mining sector contracted by 0.15% in both May and April 2025, compared to 6.6% growth in May 2024.
• Electricity sector contracted by 5.8% in May 2025 vs:
• 13.7% growth in May 2024
• 1.75% growth in April 2025
• Primary goods sector:
• Contracted by 1.9% in May 2025
• Contracted by 0.2% in April 2025
• Had grown 7.3% in May 2024
• Consumer durables sector:
• Contracted by 0.7% in May 2025
• High base: 12.6% growth in May 2024
• Consumer non-durables sector:
• Contracted by 2.4% in May 2025
• Fourth straight month of contraction
• Low base: 2.8% growth in May 2024

FSR Highlights Banks’ Strong Resilience to Macroeconomic Shocks Through Stress Tests

• The Reserve Bank of India (RBI) conducted macro stress tests on 46 Scheduled Commercial Banks (SCBs), representing 98% of total SCB assets (excluding Regional Rural Banks), to assess resilience to macroeconomic shocks.
• The tests included three scenarios over a two-year horizon:
• Baseline scenario
• Adverse Scenario 1 (Geopolitical Risk)
• Adverse Scenario 2 (Global Growth Slowdown)
• Capital Adequacy:The Capital to Risk-Weighted Assets Ratio (CRAR) may:
• Dip to 17% by March 2027 under the baseline scenario (from 17.2% in March 2025)
• Fall to 14.2% under Scenario 1
• Fall to 14.6% under Scenario 2
• However, none of the banks would fall below the regulatory minimum CRAR of 9% under any scenario.
• The Common Equity Tier-I (CET-I) capital ratio:
• May rise to 15.2% by March 2027 in the baseline scenario (from 14.6% in March 2025)
• May fall to 12.5% (Scenario 1)
• May fall to 12.9% (Scenario 2)
• No bank will breach the minimum CET-I requirement of 5.5
• Asset Quality:Gross NPA (GNPA) ratio may:
• Rise marginally to 2.5% by March 2027 from 2.3% in March 2025 (Baseline)
• Climb to 5.6% under Scenario 1
• Climb to 5.3% under Scenario 2
• As of March 2025:
• GNPA is at 2.3% (multi-decade low)
• Net NPA is at 0.5%
• Slippage ratio is stable at 0.7
• NPA Movements:Write-offs to GNPA ratio rose to 31.8% in FY 2024–25 (from 29.5% in FY 2023–24):
• Increase led by Private Sector Banks (PVBs) and Foreign Banks (FBs)
• Marginal decline in Public Sector Banks (PSBs)
• Over the last 5 years, write-offs have been the major component of NPA reduction.

Meta Makes SEBI Verification Mandatory for Securities and Investment Advertisements on Its Platforms

• Meta mandates that all advertisers running securities and investment ads in India on platforms like Facebook, Instagram, and WhatsApp must be: Verified by SEBI, or Complete business/identity verification if exempt from SEBI registration
• The rule applies to global campaigns targeting Indian users and takes effect from July 31, 2025.
• This initiative aligns with SEBI’s efforts to regulate financial content and curb misleading ads by finfluencers.
• Ads will display a disclaimer showing SEBI registration details of the verified beneficiary and payer.
• The verification process began on June 26, 2025, with a global rollout by July 28, 2025.
• The new rules are expected to significantly impact finfluencers, especially those in a regulatory grey area.
• Many finfluencers without formal SEBI recognition may be disqualified from paid promotions.
• Over 50% of financial marketers have already paused influencer campaigns due to rising compliance risks.
• Meta advises advertisers to complete verification using official business documents and recommends clients have access to ad accounts used on their behalf to comply

Asian Infrastructure Investment Bank Subscribes to ₹1,301.25 Crore Non-Convertible Debentures Issued by Aditya Birla Capital Limited

• The Asian Infrastructure Investment Bank (AIIB) has subscribed to ₹1,301.25 crore worth of Non-Convertible Debentures (NCDs) issued by Aditya Birla Capital Limited (ABCL).
• The investment is a three-year privately placed funding aimed at supporting renewable energy and electric mobility projects in India.
• The financing will support lending for renewable energy generation, including:Solar, Wind, Geothermal, Pumped storage, Hydrogen production, Energy storage systems
• AIIB has assisted ABCL in enhancing its Environmental and Social Management System (ESMS) to align with AIIB’s framework for improved governance in sub-projects.
• This investment supports India’s climate commitments under the Paris Agreement and key government initiatives such as:National Infrastructure Pipeline, Renewable energy targets

About AIIB (Asian Infrastructure Investment Bank):

• The AIIB is a multilateral development bank that aims to improve social and economic outcomes in Asia by investing in sustainable infrastructure and other productive sectors.
• The AIIB focuses on areas such as transportation, energy, water, urban development, and digital infrastructure.
• Founded Year: 2016
• Headquarters: Beijing, China
• President: Jin Liqun
• Members: 110

FSR Projects Non-Banking Finance Companies’ Gross Non-Performing Asset  Ratio Could Increase to 5.8% Under High-Risk Scenario

• According to the Reserve Bank of India (RBI), Non-Banking Finance Companies’ (NBFCs) Gross Non-Performing Asset (GNPA) ratio may rise to 5.8% from 2.9% in March 2025 under a severe stress scenario.
• Under the baseline scenario, the system-level GNPA ratio of sample NBFCs may increase from 2.9% in March 2025 to 3.3% in March 2026.
• The aggregate Capital to Risk-weighted Assets Ratio (CRAR) may decline to 21.4% in March 2026 from 23.4% in March 2025.
• Under the baseline scenario, 10 NBFCs (all in the middle layer) may breach the regulatory minimum capital requirement of 15%.
• Under medium and severe risk scenarios, income loss and additional provision requirements may further reduce CRAR by an additional 80 basis points (bps) and 100 bps, respectively, compared to the baseline.
• Under the high-risk scenario, 15 NBFCs (all in the middle layer) may fail to meet the minimum regulatory capital requirement.
• RBI’s stress test covered 158 NBFCs, which together held total advances of ₹26.94 lakh crore as of March 2025, accounting for 95% of total non-government NBFC advances.

Reserve Bank of India Estimates Rs 2.86 Lakh Crore Market Borrowing by States/UTs in July–September Quarter

• States and Union Territories (UTs) are expected to raise around ₹2.86 lakh crore from the markets during the July–September 2025 quarter, according to the Reserve Bank of India (RBI).
• These borrowing plans were finalized after consultations between the RBI and State/UT governments.
• On July 1, 2025, a total of ₹18,100 crore is proposed to be borrowed by the following states:
• Andhra Pradesh – ₹2,000 crore
• Assam – ₹900 crore
• Gujarat – ₹1,000 crore
• Himachal Pradesh – ₹1,200 crore
• Kerala – ₹2,000 crore
• Maharashtra – ₹6,000 crore
• Rajasthan – ₹500 crore
• Tamil Nadu – ₹2,000 crore
• Telangana – ₹1,500 crore
• West Bengal – ₹1,000 crore
• Gross market borrowing for FY 2025-26 is budgeted at ₹14.82 lakh crore.
• Of this, ₹8.00 lakh crore (54%) is planned for the first half (H1) of the fiscal year through issuance of dated securities.
• These borrowings will be carried out through 26 weekly auctions.
• Borrowing will be across multiple maturities:
• 3-year – 5.3%
• 5-year – 11.3%
• 7-year – 8.2%
• 10-year – 26.2%
• 15-year – 14.0%
• 30-year – 10.5%
• 40-year – 14.0%
• 50-year – 10.5%
• Finance Minister Nirmala Sitharaman has set the fiscal deficit target for FY 2025-26 at 4.4% of GDP, down from the revised 4.8% in FY 2024-25.
• The government aims to reduce the fiscal deficit below 4.5% of GDP by the end of FY 2025-26.
• As per the Union Budget 2025-26, the total market borrowing is planned at ₹15.4 lakh crore for the fiscal.

CCIL IFSC Ties Up with Standard Chartered Bank for Settlement Services in GIFT City

• CCIL IFSC Limited, a subsidiary of The Clearing Corporation of India Ltd (CCIL), has partnered with Standard Chartered Bank.
• Under the agreement, Standard Chartered Bank will serve as the Settlement Bank for the Foreign Currency Settlement System (FCSS) of CCIL IFSC Ltd in GIFT City, Gujarat.
• The FCSS will initially facilitate real-time settlement of USD transactions within GIFT IFSC.
• P D Singh is the CEO of India & South Asia, Standard Chartered Bank.
• The Clearing Corporation of India Ltd (CCIL), established in 2001, plays a crucial role in India’s financial infrastructure by providing clearing, settlement, and risk management services for various financial instruments.

Securities and Exchange Board of India Proposes New IT Capacity Guidelines for Commodity Exchanges and Clearing Corporations

• The Securities and Exchange Board of India (SEBI) has proposed that commodity exchanges and clearing corporations maintain IT system capacity of twice the projected peak load.
• This is a reduction from the existing requirement of four times the peak load, as per the 2016 guidelines, which applied only to exchanges.
• The new proposal extends the capacity norms to clearing corporations as well, ensuring uniform standards.
• The draft framework includes:Forward-looking capacity planning, Quarterly stress testing, Real-time automated alert systems
• If utilisation exceeds 75% of installed capacity, immediate corrective actions must be taken by stock exchanges and clearing corporations.
• The projected peak load must be calculated based on:
• 180-day historical trends
• 60-day future forecasts
• Shorter durations may be used with board approval
• The framework applies to all hardware, software, and third-party vendor systems.

CURRENT AFFAIRS: NATIONAL AND STATE NEWS

ASEAN–India Cruise Dialogue Inaugurated in Chennai to Strengthen Maritime Tourism

• The first ASEAN–India Cruise Dialogue was held aboard the MV Empress at Chennai Port, bringing together delegates from all 10 ASEAN member countries and Timor Leste to deepen maritime cooperation, cruise connectivity, and sustainable tourism under India’s Sagarmala and Act East initiatives.

Key Highlights :

• Venue & Date: Held on 1 July 2025 aboard the MV Empress at Chennai Port, with continuation in Mamallapuram (UNESCO World Heritage Site).
• Participants: 30+ delegates from Brunei, Cambodia, Indonesia, Laos PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam, and Timor Leste, alongside senior MoPSW officials.
• Objectives:
  • Strengthen maritime cooperation between India and ASEAN.
  • Promote sustainable cruise tourism and develop cruise circuits in the Bay of Bengal and Indian Ocean.
  • Support Cruise Bharat Mission, Maritime India Vision 2030, and Maritime Amrit Kaal 2047.
• Thematic Sessions: Focus on “ASEAN–India Cooperation Fund: Trade & Investment” and “ASEAN–India Cruise Tourist Circuits”.
• Integrated Network: Envisions a real-time tracked cruise corridor linking Indian and ASEAN ports, aligning with Viksit Bharat 2047 and ASEAN Community Vision 2045.
• High-Level Support: Attended by MoPSW Secretary T.K. Ramachandran, IPA Chairman Sunil Paliwal, and Tamil Nadu officials, reinforcing the dialogue as a recurring strategic forum for Indo-Pacific maritime growth.

RECENT NEWS

• In a major step towards enhancing India’s maritime infrastructure, the Union Ministry of Ports, Shipping, and Waterways (MoPSW) has introduced a series of transformative initiatives aimed at modernizing the sector, strengthening global trade, and promoting sustainability. Among the key announcements is the launch of ‘One Nation: One Port Process’ (ONOP), a pioneering effort designed to standardize and streamline port operations across the country.

India’s First Wooden Gurdwara ‘Sri Nanak Niwas’ Inaugurated in Fazilka, Punjab

• India’s first all-wooden Gurdwara, Sri Nanak Niwas, was inaugurated in Fazilka, Punjab, as a unique symbol of spiritual devotion and architectural innovation, built by SSP Bhupinder Singh Sidhu using Finnish Deodhar wood in just three months.

Key Highlights :

• Inauguration Date: February 16, 2023; located inside Fazilka police lines.
• Material Used: Built entirely with imported Finnish Deodhar wood, known for weather resistance and durability.
• Structure Size: 40 ft x 40 ft with four entrances, reflecting Sikh principles of openness and equality.
• Designer: Iqbal Singh, a Ludhiana-based master carpenter experienced in wooden constructions abroad.
• Construction Details:
  • Wood shipped by sea, transported to Fazilka by truck.
  • Features include ventilated domes, aligned beams, and North-South entrance orientation for airflow and weather protection.
• Objective:
  • Provide a place of worship for police personnel and their families.
  • Blend architectural uniqueness with Sikh spiritual traditions.
  • Boost religious tourism and promote community engagement in Fazilka.

RECENT NEWS

• In a significant boost to crop diversification, Punjab has recorded a 20% increase in cotton cultivation in 2025 compared to the previous year. The area under cotton has expanded from 2.49 lakh acres to 2.98 lakh acres, marking a rise of over 49,000 acres.

Ladakh Inaugurates First Astro Tourism Festival in Leh

• Ladakh’s Tourism Department, in collaboration with the Indian Institute of Astrophysics, hosted a two-day Astro Tourism Festival in Leh to showcase the region’s prime conditions for stargazing and promote science-driven tourism.

Key Highlights :

• Duration – Two days: immersive workshops and observation sessions held in Leh.
• Organizers: Ladakh Tourism Department with support from Indian Institute of Astrophysics, Kashmir University, and ISRO scientists.
• Venues:
  • Leh University Campus: telescope-guided constellation, planet, and deep-sky viewing.
  • Hanle Dark Sky Reserve: globally recognized site for astronomy.
• Objectives:
  • Establish Ladakh as India’s astro-tourism hub leveraging its high altitude, dry climate, and low light pollution.
  • Educate visitors on astronomy and space science.
  • Integrate science tourism into local development strategies.
• Background:
  • Hanle Dark Sky Reserve designated in 2022 as India’s first such reserve.
  • Home to the Indian Astronomical Observatory, one of the world’s highest optical and gamma-ray telescope sites.

RECENT NEWS

• Union Territory of Ladakh, President Droupadi Murmu has promulgated three key regulations: the Ladakh Reservation (Amendment) Regulation, 2025, ensuring 85% job reservation for local residents; the Ladakh Official Languages Regulation, 2025, recognizing five official languages including Bhoti and Purgi; and amendments to the Ladakh Autonomous Hill Development Councils Regulation, providing for 33% reservation for women in the Leh and Kargil Hill Councils.

India Achieves 78% Reduction in Under-Five Mortality Rate, Outperforming Global Average

• India’s under-five mortality rate has fallen by 78%, surpassing the 61% global decline, as per the 2024 UN IGME report, alongside a 70% drop in neonatal deaths.

Key Highlights :

• The 2024 UN Inter-agency Group for Child Mortality Estimation (UN IGME) report has recognized India’s exceptional progress in reducing both under-five and neonatal mortality at a time when post-pandemic recovery and equity in health are under scrutiny.
• Key Achievements:
  • Under-Five Mortality ↓ 78% (vs 61% global)
  • Neonatal Mortality ↓ 70% (vs 54% global)
  • Zero-Dose Children ↓ from 0.11% to 0.06% (2023–24)
• Contributing Factors – Universal Immunization Programme (UIP):
  • Launched 1985; provides free vaccines for 12 preventable diseases (Polio, Measles, Hepatitis B, etc.).
  • Covers 2.9 crore pregnant women and 2.6 crore infants annually.
  • Mission Indradhanush & Intensified Mission Indradhanush ensure last-mile reach in remote and underserved areas.
• Objectives:
  • Reduce child & maternal mortality and achieve Universal Health Coverage (UHC).
  • Strengthen public trust through community-based vaccine awareness.
  • Ensure health equity for the most vulnerable populations.
• Background & Static Facts:
  • UN IGME is a collaboration of UNICEF, WHO, World Bank, and UN-DESA.
  • Neonatal mortality refers to deaths within the first 28 days of life; under-five mortality covers deaths under five years of age.

CURRENT AFFAIRS : INTERNATIONAL NEWS

Dalai Lama to Speak at Major Three-Day Buddhist Gathering Ahead of 90th Birthday

• The Dalai Lama, Tibet’s spiritual leader, will address a major three-day gathering of Buddhist religious figures ahead of his 90th birthday.
• The conference is the first since 2019 and will include over 100 Tibetan Buddhist leaders. It will feature a video statement from the Dalai Lama.
• Hollywood actor Richard Gere, a long-time follower of Tibetan Buddhism, is expected to attend.
• The Dalai Lama fled Tibet in 1959 after a failed uprising against Chinese rule. China regards him as a separatist and claims it will choose his successor.
• The Dalai Lama has stated that his successor will be born outside China and has urged followers to reject any successor appointed by Beijing.
• Tibetan Buddhists believe in the reincarnation of enlightened monks to continue their spiritual legacy.
• The Dalai Lama will turn 90 years old on July 6, 2025, and has said he will consult senior monks and officials to provide clues about his successor’s birthplace and identity.
• He lives in exile in Dharamshala, India, and previously mentioned the possibility of reincarnating there.
• The Dalai Lama’s Gaden Phodrang Foundation, established in 2015, oversees the process of recognizing his next reincarnation.
• Since 2011, the Dalai Lama has relinquished his political role to a democratically elected Tibetan government in exile, ending the 368-year tradition of combining spiritual and temporal leadership.
• Tibetans continue to pray for the Dalai Lama’s long life and health, especially after his knee surgery in the U.S. last year.

CURRENT AFFAIRS: MOUS AND AGREEMENT

Reliance Defence Partners with Coastal Mechanics to Launch Defence Maintenance, Repair, and Overhaul Hub in Maharashtra

• Reliance Defence, part of Reliance Infrastructure, has joined forces with U.S.-based Coastal Mechanics Inc. to establish a state-of-the-art Maintenance, Repair, and Overhaul (MRO) and upgrade facility at MIHAN, Nagpur, Maharashtra.
• This joint venture supports India’s Atmanirbhar Bharat vision by focusing on upgrading and extending the lifecycle of ageing defence platforms.

Key Highlights :

• Location: MIHAN (Multi-modal International Cargo Hub and Airport at Nagpur), Maharashtra.
• Partners: Reliance Defence (India) & Coastal Mechanics Inc. (USA).
• Sector: Defence MRO and Upgrades targeting both Indian Armed Forces and export clients.
• Focus Areas: Lifecycle modernization (upgrading instead of replacing) of:
  • 100 Jaguar aircraft
  • 100 MiG-29 fighter jets
  • 20 Apache attack helicopters
  • L-70 air defence guns
• Strategic Alignment: Future contracts expected to leverage Coastal Mechanics’ existing US defence ties through Foreign Military Sales (FMS) agreements.

About Coastal Mechanics Inc. (CMI):

• • Founded in 1975, a contractor to the US Department of Defence.
  • Supplies components to the US Air Force and Army.
• India’s Defence Growth:
  • Defence production in FY25 reached ₹1.46 trillion, a 15% year-on-year increase.
  • Defence exports totaled ₹24,000 crore.
  • The MRO market is poised for expansion with emphasis on indigenous support and asset life extension.

RECENT NEWS

• India is set to develop its first underwater museum and artificial coral reef around the decommissioned warship INS Guldar near Nivati Rocks, located off the coast of Vengurla in Sindhudurg district, Maharashtra.

Daily CA One- Liner: June 2

• The first ASEAN–India Cruise Dialogue was held aboard the MV Empress at Chennai Port, bringing together delegates from all 10 ASEAN member countries and Timor Leste to deepen maritime cooperation, cruise connectivity, and sustainable tourism under India’s Sagarmala and Act East initiatives
• India’s first all-wooden Gurdwara, Sri Nanak Niwas, was inaugurated in Fazilka, Punjab, as a unique symbol of spiritual devotion and architectural innovation, built by SSP Bhupinder Singh Sidhu using Finnish Deodhar wood in just three months
• Ladakh’s Tourism Department, in collaboration with the Indian Institute of Astrophysics, hosted a two-day Astro Tourism Festival in Leh to showcase the region’s prime conditions for stargazing and promote science-driven tourism
• India’s under-five mortality rate has fallen by 78%, surpassing the 61% global decline, as per the 2024 UN IGME report, alongside a 70% drop in neonatal deaths
• Reliance Defence, part of Reliance Infrastructure, has joined forces with U.S.-based Coastal Mechanics Inc. to establish a state-of-the-art Maintenance, Repair, and Overhaul (MRO) and upgrade facility at MIHAN, Nagpur, Maharashtra
• Despite global uncertainties, India’s financial system remains resilient and well capitalised, as per the Reserve Bank of India’s (RBI) Financial Stability Report (FSR).
• The Securities and Exchange Board of India (SEBI) has approved registered market intermediaries to use the NPCI’s ‘e-KYC Setu System’ for performing digital KYC.
• AU Small Finance Bank (AU SFB) has entered into a partnership with the Life Insurance Corporation of India (LIC), the country’s largest life insurer.
• Interest rates on small savings schemes, including Public Provident Fund (PPF) and Sukanya Samriddhi Scheme (SSS), will remain unchanged for the 7th consecutive quarter starting July 1, 2025.
• India’s industrial growth fell to a 9-month low of 1.2% in May 2025, as per the Index of Industrial Production (IIP) released by the Ministry of Statistics and Programme Implementation on June 30.
• The Reserve Bank of India (RBI) conducted macro stress tests on 46 Scheduled Commercial Banks (SCBs), representing 98% of total SCB assets (excluding Regional Rural Banks), to assess resilience to macroeconomic shocks.
• Meta mandates that all advertisers running securities and investment ads in India on platforms like Facebook, Instagram, and WhatsApp must be: Verified by SEBI, or Complete business/identity verification if exempt from SEBI registration
• The Asian Infrastructure Investment Bank (AIIB) has subscribed to ₹1,301.25 crore worth of Non-Convertible Debentures (NCDs) issued by Aditya Birla Capital Limited (ABCL).
• According to the Reserve Bank of India (RBI), Non-Banking Finance Companies’ (NBFCs) Gross Non-Performing Asset (GNPA) ratio may rise to 5.8% from 2.9% in March 2025 under a severe stress scenario.
• States and Union Territories (UTs) are expected to raise around ₹2.86 lakh crore from the markets during the July–September 2025 quarter, according to the Reserve Bank of India (RBI).
• CCIL IFSC Limited, a subsidiary of The Clearing Corporation of India Ltd (CCIL), has partnered with Standard Chartered Bank.
• The Securities and Exchange Board of India (SEBI) has proposed that commodity exchanges and clearing corporations maintain IT system capacity of twice the projected peak load.
• The Dalai Lama, Tibet’s spiritual leader, will address a major three-day gathering of Buddhist religious figures ahead of his 90th birthday.