Banking Awareness of 1, 2 and 3 September 2025

Topic: Indian Economy/Financial Market

1. India’s current account posted a deficit of 0.2% of GDP in Q1 FY26.

• This followed a surplus of 1.3% of GDP in Q4 FY25.

• The deficit was smaller than the 0.9% of GDP recorded in Q1 FY25.
• In value terms, the CAD stood at $2.4 billion in Q1 FY26.
• This was a decrease from $8.6 billion in the same quarter last year.
• India had posted a current account surplus of $13.5 billion in Q4 FY25.
• The reduction in deficit was supported by stronger service exports, higher remittances, and increased capital inflows.
• The merchandise trade deficit widened to $68.5 billion in Q1 FY26.
• This was higher than the $56.7 billion deficit in Q1 FY25.
• Net service receipts rose to $47.9 billion in Q1 FY26. A year ago, they were $39.7 billion.
• Service exports grew across key areas like business and IT services, as per the RBI.
• Remittances from overseas Indians increased to $33.2 billion in Q1 FY26.
• This was up from $28.6 billion in the same period last year.
• Net outgo under the primary income account rose to $12.8 billion. It was $10.9 billion in Q1 FY25.
• Net foreign direct investment inflows fell to $5.7 billion in Q1 FY26.
• Foreign portfolio investment inflows rose to $1.6 billion. They were $0.9 billion in Q1 FY25.
• External commercial borrowings brought in $3.7 billion during the quarter.
• This was more than double the $1.6 billion inflow seen a year earlier.
• NRI deposits stood at $3.6 billion in Q1 FY26. This was slightly below the $4.0 billion recorded in Q1 FY25.

Topic: Taxation

2. India’s GST revenue for August 2025 increased by 6.5% compared to the same month last year.

• The total gross collection crossed ₹1.86 lakh crore.

• After adjusting for refunds, net GST collections increased by 10.7%.
• Net revenue for the month stood at around ₹1.67 lakh crore.
• The August GST figures are based on goods and services consumed in July.
• Domestic GST revenue amounted to nearly ₹1.37 lakh crore.
• This marked a 9.6% rise from ₹1.25 lakh crore collected in August last year.
• Revenue from imports declined slightly to over ₹49,300 crore.
• Last year, import revenue was around ₹50,000 crore.
• Refunds to domestic businesses dropped by more than 21% in August.
• Refunds issued to exporters fell by nearly 18% during the same period.
• April 2025 recorded the highest-ever monthly GST collection. The collection in April stood at ₹2.37 lakh crore.

Topic: MoUs/Agreements

3. State Bank of India (SBI) has signed a €100 million climate finance agreement with Agence Française de Développement (AFD).

• The agreement was signed at SBI’s branch in GIFT City.
• The funding is intended to support India’s shift toward a low-carbon economy.
• It also aims to strengthen the country’s ability to manage climate-related risks.
• SBI said the deal supports its goal of building a green portfolio.
• The bank plans for green loans to make up 7.5–10% of its domestic advances by 2030.
• The funds will be used for both climate mitigation and adaptation projects.
• Mitigation efforts will help reduce greenhouse gas emissions.
• Adaptation measures will improve infrastructure and systems to handle climate impacts.
• The partnership will allow SBI to offer more competitive green finance solutions.
• SBI will also benefit from AFD’s expertise in climate finance.
• This includes support in green technology, project planning, and ESG practices.
• In February 2025, a $100 million credit facility agreement (CFA) have been signed by Small Industries Development Bank of India (SIDBI) and AFD, France.
• This was signed to scale up green finance solutions for Indian micro, small, and medium enterprises (MSMEs).

Topic: Reports and Indices

4. India's manufacturing PMI reached 17-year high of 59.3.

• India’s manufacturing sector recorded its fastest growth in more than 17 years in August 2025.
• The HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose to 59.3 from 59.1 in July.
• This figure reflected the strongest improvement in operating conditions since mid-2008.
• The surge was driven by robust demand, higher orders, and increased production.
• Production volumes expanded at the quickest pace in nearly five years.
• Incoming new orders rose roughly in line with July, the fastest in 57 months.
• The report stated that demand buoyancy and successful advertising campaigns supported this growth.
• The pace of input purchases increased, and job creation was also enhanced.

Topic: Appointments

5. Ms. T.C.A. Kalyani assumed charge as Controller General of Accounts.

• Ms. T.C.A. Kalyani assumed charge as the new Controller General of Accounts (CGA) in the Ministry of Finance.

• She became the 29th officer to hold this position.
• Ms. Kalyani belongs to the 1991 batch of the Indian Civil Accounts Service (ICAS).
• Her academic background includes a B.A. in Political Science, an M.A. in International Politics, and an M.Phil. in West European Studies.
• She brings over 34 years of experience in governance, accounting, and administration.
• Several ministries, such as Defence, Telecom, Fertilizers, Social Justice, Finance, and Home, have benefited from her service.
• Her contribution in launching the Direct Benefit Transfer (DBT) scheme for fertilizer subsidies was considered significant.
• Before her present role, she served as Principal Chief Controller of Accounts in the Ministry of Home Affairs.
• Controller General of Accounts (CGA):
  • It is the Principal Advisor on accounting matters to the Government of India.
  • It is responsible for establishing and managing a technically sound Management accounting system and preparation and submission of accounts of the union government.
  • It is responsible for exchequer control and conduct of internal audits for the central government.

Topic: Indian Economy/Financial Market

6. India's GDP growth rate increased to 7.8%, the highest in five quarters.

• India’s economy recorded a 7.8% GDP growth in the June quarter of FY 2025-26, the highest in five quarters.
• The GDP growth rate increased for the third consecutive quarter in the first quarter of FY 2025-26.
• This growth rate of 7.8% is 43 basis points (one basis point is one hundredth of a percentage point) higher than the March quarter figure.
• It is 1.3 percentage points higher than the 6.5% figure of the June quarter of the last financial year.
• The growth surpassed expectations, as a Bloomberg poll had estimated it at 6.7%.
• The increase was driven by strong performances across agriculture, industry, and services sectors.
• Agricultural growth rose to 3.7% compared to 1.5% a year ago, while industry grew at 7% and services at 9.3%.
• According to the quarterly estimates of GDP for the first quarter of the current fiscal year released by the Ministry of Statistics and Programme Implementation, the nominal GDP has witnessed a growth rate of 8.8% during the same period.

Topic: Indian Economy/Financial Market

7. The central government’s fiscal deficit reached 29.9% of the annual target by the end of July 2025.

• This is according to Controller General of Accounts (CGA) data released on August 29, 2025.
• In the first four months of the previous financial year, it had reached only 17.2% of the 2024-25 Budget Estimates.
• The deficit was at 17.9% of the full-year target at the end of first quarter (April-June).
• From April to July 2025, the government recorded a fiscal gap of ₹4.68 lakh crore.
• For the entire 2025-26 fiscal year, the deficit is targeted at 4.4% of GDP. This equals a total of ₹15.69 lakh crore.

Topic: Reports and Indices

8. The Ministry of Power has released the 2024 State Energy Efficiency Index (SEEI).

• This edition of the Index focuses on tracking and improving energy use at the state level.
• It helps establish a structured approach to monitoring energy performance.
• The Index also promotes the sharing of best practices across states.
• It encourages competition to enhance overall energy efficiency.
• Maharashtra, Andhra Pradesh, Assam, and Tripura are the top-ranking states this year.
• The sixth edition includes a stronger focus on practical implementation.
• It features 66 indicators to assess performance in energy use.
• These indicators cover seven major sectors of energy demand.
• The sectors include buildings, industry, municipal services, transport, and agriculture.
• They also include electricity distribution and cross-sector initiatives.
• A total of 36 States and Union Territories were assessed in SEEI 2024.
• The evaluation reflects data from the 2023–24 fiscal year.
• States were classified into four performance categories.
• These categories are Front Runners (>60%), Achievers (50-60%), Contenders (30-50%), and Aspirants (<30%).