International Affairs
Historic Election of First American Pope: Cardinal Robert Prevost was elected as the 267th leader of the Catholic Church, becoming the first American pope in history. He has chosen the name Leo XIV. The conclave reached its decision in just 24 hours and 21 minutes after the doors closed to the Sistine Chapel.
India-Pakistan Tensions Escalate: Heavy shelling reported along the Line of Control dividing Kashmir. Both countries have accused each other of drone attacks, with Pakistan claiming India fired attack drones that killed at least two civilians on Thursday.
US Pushes for De-escalation: US Secretary of State Marco Rubio has engaged with officials from both India and Pakistan, stressing the importance of urgent de-escalation. He held phone discussions with Pakistan Prime Minister Muhammad Shehbaz Sharif.
Xi Jinping in Moscow: Chinese President Xi Jinping arrived in Moscow to attend Victory Day celebrations and hold talks with Russian President Vladimir Putin, highlighting continued strategic cooperation between the two nations.
US-UK Trade Framework: President Trump announced a trade deal with the United Kingdom, the first agreement with any country since launching his tariffs. Details are still being worked out, but the UK will buy more American goods while the US will scale back some tariffs on British products.
Russia-Ukraine Conflict Update: Russia has accused Ukraine of violating its own ceasefire, further complicating peace efforts in the region.
Iranian Diplomatic Move: Iran’s Foreign Minister Araghchi visited India days after offering mediation in the India-Pakistan tensions.
National Affairs
High-Level Government Meeting: Prime Minister Narendra Modi chaired an important meeting with Secretaries of Government of India to discuss the current security situation.
All-Party Meeting: The Centre called an all-party meeting to discuss Operation Sindoor, indicating a unified approach to the current security challenges.
Civil Defence Preparations: Mock drills were conducted across the country in response to the escalating situation with Pakistan. Citizens were evacuated from key locations including India Gate in New Delhi.
IPL Match Cancellations: The IPL 2025 match between Punjab Kings and Delhi Capitals in Dharamsala was canceled following air raid alerts in the neighboring cities of Jammu and Pathankot. The match between Punjab Kings and Mumbai Indians scheduled for May 11 in Dharamsala has been shifted to another venue.
Power Restoration in Border Areas: Power has been gradually reinstated in various areas of Jammu region following reported incidents, indicating a return to normalcy.
Air Force Mobilization: The Indian Air Force announced plans to hold war games along the international border with Pakistan as part of defensive preparations.
Economy & Banking
Market Decline: Benchmark Sensex declined by nearly 412 points in a volatile session on Thursday due to selling pressure amid geopolitical tensions.
Banking Sector Risk: The BFSI (Banking, Financial Services, and Insurance) sector’s risk index rose amid inflation and geopolitical tensions, though digitization and AI adoption have supported operational resilience.
NBFC Challenges: Lower-rated NBFCs (Non-Banking Financial Companies) are facing increased credit costs, delayed funding relief, and rising losses in unsecured segments as overall loan growth slows down.
Bank Credit Growth: Overall bank credit growth declined to 11% in FY25 from 20.11% in FY24 according to Reserve Bank of India data.
Banking Sector Penalties: ICICI, Axis, Bank of Baroda, Bank of Maharashtra, and IDBI Bank were penalized by RBI for regulatory breaches including delayed reporting, excessive charges, and non-compliant operations.
Economic Growth Forecast: Deloitte forecasts annual growth of 6.3% to 6.5% for India in fiscal 2024-25, with projections of 6.5% to 6.7% for 2025-26, remaining cautiously optimistic despite global trade uncertainties.
Petroleum Consumption Projection: India is expected to increase its petroleum consumption by 0.2 million barrels per day in 2025, with total annual consumption projected at 5.66 million barrels per day.
Sports & Entertainment
IPL 2025 Updates: Chennai Super Kings ended their losing streak with a thrilling two-wicket victory over Kolkata Knight Riders. Dewald Brevis scored a vital half-century (52) for CSK in the match.
Trans-Tasman Basketball Series: Both the Tall Blacks and Tall Ferns (New Zealand basketball teams) were defeated by Australia in the opening games of the 3-match Trans-Tasman series in Adelaide.
Upcoming Sporting Events: The 2025 sporting calendar features major tournaments including the Women’s Rugby World Cup in England, Women’s Cricket World Cup in India, and the expanded 2025 FIFA Club World Cup.
Important Days
World Red Cross Day: Observed annually on May 8 to commemorate the birth anniversary of Henry Dunant, founder of the International Committee of the Red Cross, highlighting humanitarian values and activities worldwide.
World Thalassaemia Day: Also observed on May 8 to raise awareness about thalassaemia, a blood disorder that affects the body’s ability to produce hemoglobin, and to encourage prevention and improved treatment methods.
Defence & Security
Operation Sindoor: The government held an all-party meeting to discuss this operation, indicating a significant military or strategic initiative in response to border tensions.
Defence Mock Drills: Nationwide civil defence mock drills were conducted on May 7-8 to prepare citizens for potential emergency situations.
Border Security Enhancement: Banks have reportedly increased security at branches in border areas due to the escalating tensions.
Military Posture: India continues defensive preparations along the International Border and Line of Control with Pakistan, with increased vigilance and operational readiness.
Appointments & Resignations
RBI Leadership: Sanjay Malhotra continues as RBI Governor, having recently overseen the monetary policy changes including the rate cut in April 2025.
Banking Exam Special
May 2025 Bank Holidays: The Reserve Bank of India (RBI) has designated 13 bank holidays for May 2025, according to its official holiday calendar for the fiscal year 2025-2026, covering national and regional observances.
RBI Monetary Policy Shift: The RBI’s stance has shifted from neutral to accommodative following the 25-basis point rate cut in April, indicating potential for another 25-basis point cut in the second half of 2025.
Loan-Deposit Rate Spread: The lending-deposit rate spread for banks dropped to 2.71% in March, driven by lower lending rates amid reduced high-yield loan exposure and RBI rate cuts.
Public Sector Banks: PSBs’ credit share fell by 4% from FY21 to FY25, showing a slower rate of decline compared to the approximately 20% drop between FY11 and FY21.
Home Loan Rate Cuts: Bank of Baroda has cut home loan rates by 40 basis points, with revised rates starting at 8% and linked to borrower credit scores, with additional concessions offered.
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