Daily Current Affairs

To The Point Notes

Context : RBI expects GNPA ratio of commercial banks to improve to 2.5% by March 2025.

About GNPA Ratio

Measures the health of a bank by looking at the % of loan assets classified as non-performing.
Non-Performing Assets (NPAs): Loans where borrower defaults on interest or principal repayments.

Impact of GNPA Ratio

Higher GNPA: Indicates higher risk of defaults and potential financial distress for the bank.
- Lower profitability due to reduced income from bad loans.
- Lower liquidity as capital is tied up in risky loans.
Lower GNPA: Indicates a healthier loan portfolio and better financial stability for the bank.

Regulatory Aspects

Banks must report GNPA ratio regularly to regulators for transparency and risk assessment.

Stress Tests

RBI conducts stress tests to assess bank resilience against economic shocks (credit risk, interest rate risk, liquidity risk).
These tests help project future GNPA and capital ratios under different scenarios.

Context: Karnataka tourism to promote Somanathapura as part of Mysore tourism circuit (being a UNESCO World Heritage Site).

Details

Location: Somanathapura, Mysore district, Karnataka (banks of River Kaveri).
Hoysala monument built in 1268 AD by Somanatha Dandanayaka (general under Hoysala king Narasimha III).
Central Trikuta temple (dedicated to Krishna as Janardhana, Keshava & Venugopala) on a high star-shaped platform with 3 sanctums.
Significance: Designated a World Heritage Site by UNESCO in 2023 as part of the “Sacred Ensembles of the Hoysalas” (along with Hoysaleswara Temple, Halebidu & Chennakeshava Temple, Belur).

Current Status: India’s fiscal deficit for the first 10 months of FY24 stands at ₹11.03 trillion (as per Controller General of Accounts data).
Definition: Fiscal deficit is the gap between government’s total revenue and expenditure, indicating its borrowing needs for the year. It’s expressed as a percentage of GDP.
Impact:
- Positive: Can boost a slow economy by increasing spending power for investment.
- Negative: Persistent high deficits can lead to:
  - Increased government borrowing
  - Inflation
  - Higher interest rates
  - Economic instability
Government Targets:
- Reduce deficit to 5.8% of GDP in FY24 (from 6.4% in FY23).
- Further reduce deficit to 5.1% of GDP by FY25.

National Botanical Research Institute is researching methods to preserve and cultivate flowers used in rituals at the 12th-century Shree Jagannath Temple in Puri, Odisha.
Flowers for Bada Singhara Besha: This is the most important daily decoration for the temple deities.
Key Flowers:
- Davana (Asteraceae family):
  - Annual aromatic herb prized for its fragrance.
  - Used in garlands, bouquets, and religious offerings.
  - Grows wild in temperate Himalayas (Kashmir Valley, Shimla/Nainital Hills).
  - Commercially cultivated in Karnataka, Maharashtra, Kerala, Tamil Nadu, and Andhra Pradesh.
- Murraya paniculata (Orange Jasmine):
  - Ornamental and medicinal plant, also used for hedges.
  - Found in India, Sri Lanka, Southeast Asia, and Australia.
  - Fragrant flowers arranged in loose groups.
Shree Jagannath Temple:
- Built in the 12th century by King Ananta Varman Chodaganga Deva.
- Kalinga architecture, 65 meters tall on an elevated platform.
- Hosts many festivals, including the famous Rath Yatra (Car Festival).
- One of the four holy Dhams (pilgrimage sites) in India.