Current Affairs - Banking

Fino Payments Bank achieved a major milestone by becoming the first payments bank in India to secure the Reserve Bank of India’s in-principle approval to transition into a Small Finance Bank. This approval allows it to overcome the limitations of the payments bank model, such as the inability to lend or accept deposits above ₹2 lakh. By moving toward SFB status, Fino can expand its services, enter the lending market, and serve a broader range of customers, especially in underserved and rural regions. The shift is expected to enhance financial inclusion while strengthening Fino’s long-term growth, competitiveness, and operational capabilities.

Bank of India partnered with the State Bank of India to establish a Centre of Excellence in Strategic Partnership aimed at strengthening project financing capabilities. This collaboration is designed to enhance leadership, innovation and coordinated expertise in financing large-scale projects across sectors. By combining resources and focusing on teamwork, the two institutions aim to improve strategic decision-making and create more efficient frameworks for evaluating and supporting major developmental initiatives. The partnership underscores the growing need for robust financial mechanisms in infrastructure development and highlights the important role that collaborative banking models can play in advancing national economic growth.

Punjab National Bank selected Harmanpreet Kaur, captain of the Indian women’s cricket team, as its first female brand ambassador, marking a significant milestone in the bank’s branding and customer outreach efforts. The announcement was made at the bank’s New Delhi corporate office during an event symbolically titled “Banking On Champions.” Senior leadership attended the ceremony, highlighting the importance of the collaboration. Harmanpreet unveiled several new products, including PNB’s first metal credit card, an upgraded digital platform, and initiatives promoting solar solutions and bullion trading. This partnership reflects PNB’s broader focus on empowerment, modernisation, and innovation-driven financial services.

The Constitution (131st Amendment) Bill, 2025 proposes placing Chandigarh under Article 240 of the Indian Constitution, marking a major shift in its governance structure. Article 240 empowers the President to frame regulations for specific Union Territories, particularly those without legislative assemblies. By including Chandigarh within its scope, the amendment aims to align the city’s administration with other UTs governed directly through Presidential regulations. This transition may also enable the appointment of an independent Administrator for Chandigarh, moving away from the longstanding arrangement where the Governor of Punjab oversees the Union Territory. The proposal carries notable administrative, constitutional, and political implications, especially concerning Centre–State relations and federal balance.

The State Bank of India (SBI) achieved a landmark milestone by surpassing $100 billion in market capitalisation and ₹100 trillion in total business, marking a historic first in India’s banking history. This achievement highlights SBI’s dominant position in retail, SME, and corporate lending, backed by strong Q2 FY26 financial performance and 12.7% year-on-year credit growth. With total deposits around ₹55.9 lakh crore and advances of ₹44.2 lakh crore, SBI’s robust digital transformation, improving asset quality, and investor confidence have propelled it into the elite global banking league. Headquartered in Mumbai, SBI continues to be the backbone of India’s financial ecosystem.