Current Affairs - Banking

The State Bank of India (SBI) was honoured as the World’s Best Consumer Bank for 2025 by Global Finance magazine, a prestigious recognition reflecting its leadership in customer-focused and technology-driven banking. As India’s largest public sector bank, SBI has prioritised digital transformation, financial inclusion, and rural outreach to deliver seamless and accessible services to its vast customer base. Key innovations like vernacular voice banking, AI-powered personalisation, and 24/7 digital support have positioned SBI as a global benchmark in retail banking. This accolade highlights not only the bank’s evolution but also India’s growing presence in the international financial landscape.

The State Bank of India (SBI) made history on July 22, 2025, by raising ₹25,000 crore through a Qualified Institutional Placement (QIP), marking the largest such fundraising in the Indian capital market. The issue was oversubscribed 4.5 times, reflecting immense investor confidence in SBI’s robust fundamentals, long-term growth strategy, and India’s economic outlook. The QIP attracted significant interest from both foreign and domestic institutional investors and was priced at a premium of ₹817 per share. The capital raised will enhance SBI’s Common Equity Tier-1 ratio, support credit expansion across retail, MSME, and corporate segments, and bolster its leadership in digital banking and financial resilience.

Raghavendra S Bhat was appointed as the interim Managing Director and Chief Executive Officer of Karnataka Bank effective 16 July 2025, following the resignation of the former MD & CEO, Srikrishnan Hari Hara Sarma. With over four decades of experience at Karnataka Bank, Bhat joined as a clerk in 1981 and rose through the ranks to become Chief Operating Officer in 2019. His appointment as interim CEO is for a three-month period or until a permanent successor is appointed. His longstanding association with the bank ensures operational stability during this leadership transition phase.

Starting from July 16, 2025, all Indian government payments exceeding ₹75 crore are required to be processed through the RBI’s e-Kuber system. This decision aims to enhance transparency, efficiency, and accuracy in handling large-value government transactions. e-Kuber, developed by the Reserve Bank of India, offers features like real-time tracking, 24-hour reconciliation, and quicker settlements. By centralising and digitizing high-value transactions through e-Kuber, the government seeks to reduce processing delays and improve accountability in public fund disbursement and usage.

Indian Bank implemented two major customer-friendly reforms in July 2025. First, it eliminated penalties for not maintaining a minimum balance in savings accounts starting July 7, helping to expand financial access for students, senior citizens, rural families, and small business owners. Second, Indian Bank reduced its one-year Marginal Cost of Funds-Based Lending Rate (MCLR) by 5 basis points, bringing it down to 9%, effective July 3, 2025. This cut in lending rates means borrowers will benefit from slightly lower interest costs on new loans. Both measures reflect the bank’s effort to promote financial inclusion and make banking more accessible and affordable.