Current Affairs - Banking

The Life Insurance Corporation of India (LIC) increased its equity shareholding in the Central Bank of India to 6.06% through a market purchase on May 22, 2026. Earlier, LIC held a 3.16% stake, and the transaction involved acquiring an additional 2.901% equity in the public sector bank. This move reflects LIC’s continued investment strategy in government-owned financial institutions. LIC, headquartered in Mumbai and established under the LIC Act of 1956, is India’s largest state-owned insurance and investment entity. Central Bank of India, also headquartered in Mumbai and founded in 1911, is one of the oldest public sector banks and was nationalised in 1969 along with other major commercial banks.

The State Bank of India (SBI) signed an MoU with the Delhi e-Governance Society (DeGS) on May 26, 2026, to integrate the ‘e-Pay’ system into the Delhi Government eProcurement Portal. This collaboration aims to modernise procurement by automating payment processes and enabling transparent, paperless transactions. SBI’s role includes providing secure digital payment infrastructure and Management Information System (MIS) integration, ensuring real-time verification of Earnest Money Deposits (EMD) for bidders. The initiative eliminates manual payment methods like demand drafts and strengthens efficiency, transparency, and accountability in government procurement, aligning with broader goals of improving Ease of Doing Business in digital governance.

TVS Venu Group acquired a 9.9% stake in Jana Small Finance Bank for ₹193.3 crore as part of its strategy to strengthen its presence in the financial services sector. The transaction included both primary warrant subscriptions and secondary share purchases from Jana Holdings. Additionally, TVS Motor Company directly secured a 4.9% holding in the bank. Jana Small Finance Bank, headquartered in Bengaluru, began operating as a Small Finance Bank in 2018. This investment also aligns with the broader expansion plans of the TVS Group in banking, lending, and asset management services.

Mahindra & Mahindra collaborated with DBS Bank India to introduce the Indian automotive sector’s first sustainability-linked dealer financing initiative. The program offers favourable financing rates to vehicle dealers based on their environmental performance and sustainability practices. Assessment criteria include greenhouse gas emissions, water conservation, renewable energy usage, waste management, rainwater harvesting, and EV charging infrastructure. The initiative also encourages higher sales of electric SUVs. This partnership aligns with India’s broader climate commitments and net-zero goals for 2070. It also supports Mahindra’s Green Dealership Program and reflects the growing role of sustainable finance in promoting environmentally responsible business operations in India.

India’s first AI-powered “phygital” bank branch was inaugurated in Guwahati, Assam, on May 16, 2026. Opened by Assam Chief Minister Himanta Biswa Sarma, the innovative branch of Slice Small Finance Bank combines physical banking services with advanced digital infrastructure. The facility uses AI-enabled self-service kiosks, paperless onboarding systems, and automated banking processes to enhance customer convenience and efficiency. One of its key features allows users to access working capital directly through UPI without a separate loan application. The initiative is designed to support digital transformation and improve financial accessibility for small business owners and women entrepreneurs.