Current Affairs - Banking

IndusInd Bank has collaborated with UNICEF to mitigate climate risks and strengthen community resilience in five disaster-prone districts across India, including Dharashiv, Begusarai, Virudhunagar, Baran, and Bahraich. This partnership underscores the bank’s commitment to social responsibility and environmental sustainability, aligning its initiatives with global efforts to combat climate change and protect vulnerable communities.

Punjab National Bank (PNB), India’s second-largest public sector bank, has joined the Partnership for Carbon Accounting Financials (PCAF), demonstrating its commitment to sustainability and climate action. By adopting globally recognized standards for greenhouse gas emissions accounting, PNB aligns with the Reserve Bank of India’s draft climate risk guidelines. This initiative enhances the bank’s ability to disclose climate-related financial risks, participate in international knowledge-sharing forums, and access advanced tools and insights for carbon accounting, solidifying its role as a leader in responsible banking practices.

The State Bank of India successfully raised Rs 10,000 crore through its seventh infrastructure bond issuance, attracting strong demand from investors, including provident funds, pension funds, and insurance companies. The bonds were oversubscribed two times, reflecting market confidence in the bank. Proceeds from the issuance will support long-term financing for infrastructure development and affordable housing initiatives. This move aligns with the government's focus on boosting infrastructure growth and demonstrates SBI's commitment to supporting key sectors of the Indian economy.

The Reserve Bank of India (RBI) has identified the State Bank of India, HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs) due to their significant size, complexity, and systemic importance to the Indian economy. Axis Bank, on the other hand, indicates it does not meet the RBI's criteria for systemic importance. D-SIBs are subject to stricter regulations and are considered "too big to fail," requiring government support during economic downturns to prevent systemic disruption.

The State Bank of India (SBI) has taken a significant step in driving financial innovation and digital transformation by launching the 'SBI Innovation Hub' in partnership with APIX at the Singapore Fintech Festival. This initiative provides a dedicated space for global FinTechs, startups, and innovators to create next-generation financial solutions catering to SBI's diverse customer base. The hub offers access to over 250 financial service APIs, a sandbox environment, and opportunities for collaboration, hackathons, and strategic partnerships. This move underscores SBI's commitment to financial inclusion, customer-centric solutions, and its vision for digital transformation.