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- Why in News?
- Indian Overseas Bank (IOB), a public sector lender, has implemented several measures to mitigate the impact of the Reserve Bank of India’s recent repo rate cut on its Net Interest Margin (NIM).
- Key Provisions:-
- NIM is a critical profitability metric for banks, reflecting the difference between the interest income from loans and investments and the interest paid on deposits and borrowings, expressed as a percentage of average earning assets.
- A positive NIM indicates that a bank earns more from its interest-bearing assets than it pays on its liabilities, signifying operational efficiency. For instance, if a bank earns ₹8,000 crore in interest and pays ₹6,000 crore in interest expense on ₹64,000 crore of average earning assets, its NIM would be 3.125%.
- Several factors influence NIM, including market interest rates, asset-liability composition, credit risk, and operational efficiency. Gross Interest Margin (GIM), in contrast, measures the absolute difference between interest income and interest expense, without adjusting for asset size.
- As tensions between Israel and Iran intensify and threats emerge from various regional actors, renewed global focus has turned to the so-called Samson Option—Israel’s shadowy but formidable nuclear deterrence strategy.
- Key Provisions:-
- The Samson Option refers to Israel’s alleged doctrine of massive nuclear retaliation in the face of an existential threat. Named after the biblical figure Samson, who brought down a temple to kill his enemies even at the cost of his own life, the term implies a doomsday-like response to ensure national survival. While Israel has never officially confirmed possessing nuclear weapons, its policy of amimut—strategic ambiguity—maintains deliberate silence on the matter.
- Experts estimate Israel possesses 80 to 400 nuclear warheads, potentially deployable via missiles, submarines, or aircraft. The concept gained public attention through Seymour Hersh’s 1991 book The Samson Option.
- Unlike traditional nuclear deterrence, this doctrine is seen as a last-resort strategy against overwhelming conventional threats, not just nuclear ones.
- Why in News?
- In a significant show of military force, the United States recently deployed its B-2 Spirit stealth bombers to conduct precision strikes targeting Iran’s nuclear infrastructure, marking a major escalation in regional tensions.
- About the B-2 Spirit Stealth Bomber:
- The B-2 Spirit is a long-range, strategic stealth bomber operated by the U.S. Air Force and built by Northrop Grumman. First flown in 1989 and operational since 1993, only 19 of these highly advanced aircraft remain in service. Each B-2 costs approximately $2.1 billion, making it the most expensive aircraft ever developed.
- Its unique flying-wing design and radar-absorbent materials make it nearly invisible to enemy radar, with a radar cross-section comparable to that of a small bird. Powered by four turbofan engines, the B-2 can reach speeds of 1,010 km/h and cover over 11,000 km without refueling—enabling it to strike anywhere on the globe.
- It carries over 40,000 pounds of munitions, including the GBU-57A/B Massive Ordnance Penetrator, designed to destroy fortified underground targets.