Current Affairs - Banking

CTBC Bank became the first Taiwanese bank to establish a branch in GIFT City, Gujarat, on May 13, 2026. This marked a significant milestone as it was also the first Taiwanese bank to set up operations anywhere in India. The branch was opened to strengthen cross-border financing, trade, and investment activities between India, Taiwan, and other Asian markets. CTBC Bank has maintained a financial presence in India for around 30 years through branches in New Delhi and Kattupakkam (Chennai). Headquartered in Taipei, Taiwan, the bank was established in 1966 and currently operates under the leadership of CEO Tanmoy Adhikari in India.

AU Small Finance Bank launched a new credit card portfolio on May 14, 2026, introducing four variants tailored to different customer segments and lifestyle needs. The portfolio includes AU Ananta for affluent users, AU Laksya for digitally active professionals and Gen Z customers, AU Tejas for young salaried individuals, and AU Prathama for first-time credit users. These cards provide benefits such as reward points, cashback offers, airport lounge access, EMI facilities, and fuel surcharge waivers. AU Small Finance Bank is recognised as India’s largest Small Finance Bank and is also notable for receiving in-principle approval to transition into a Universal Bank.

The Reserve Bank of India approved Kotak Mahindra Bank to acquire up to 9.99% stake in both AU Small Finance Bank and Federal Bank. The approval allowed the Kotak Mahindra Group to increase its aggregate holding in the two banking institutions through paid-up share capital or voting rights. Following the announcement, market valuations of the involved banks witnessed positive movement. Kotak Mahindra Bank, founded by Uday Kotak in 1985, became the first Non-Banking Financial Company in India to convert into a commercial bank in 2003. The development highlights ongoing consolidation and strategic investments within India’s banking and financial sector.

Scheduled Commercial Banks (SCBs) recorded a strong non-food credit growth of 15.9% during the financial year 2025-26. This marked a significant improvement compared to the previous year’s growth rate of 10.9%. The increase was driven by rising demand for credit across the industrial, agricultural, and services sectors. Industrial credit saw notable expansion in infrastructure and manufacturing, while agriculture benefited from improved rural consumption and formal credit systems. The services sector also experienced strong growth due to NBFCs, trade, and commercial real estate activities. Overall, the data reflect increased economic activity and stronger lending momentum within the Indian banking sector.

The Asian Development Bank (ADB) announced a $70 billion investment initiative aimed at strengthening cross-border power grids and digital infrastructure across Asia and the Pacific by 2035. The announcement was made during the ADB Annual Meeting held in Samarkand, Uzbekistan. The initiative includes the Pan-Asia Power Grid project, which seeks to integrate renewable energy systems and transmission networks, and the Asia-Pacific Digital Highway project, focused on improving broadband access, data infrastructure, and AI readiness. The ADB also established a Centre for AI Innovation and Development in Seoul to promote responsible AI adoption and digital skill training. Founded in 1966, the ADB is headquartered in Metro Manila, Philippines.