Current Affairs - Finance

SIDBI’s net profit for FY25 grew by 19.5%, reaching an all-time high of ₹4,811 crore compared to ₹4,026 crore in FY24. This strong performance reflects not only the bank’s ability to generate sustainable growth but also its focus on maintaining asset quality, with net NPAs at 0%. Alongside this, SIDBI expanded its loan portfolio, strengthened MSME support through digital and green finance initiatives, and improved total income and EPS. The 19.5% profit growth underscores SIDBI’s robust role in India’s MSME ecosystem and its strategic alignment with national development goals.

Jio Payments Bank has introduced the “Savings Pro” facility to help customers earn higher returns on idle funds. Under this scheme, account holders can set a minimum balance threshold starting from ₹5,000, and any surplus above this amount is automatically invested in select overnight mutual funds. The facility offers returns of up to 6.5% per annum, with flexible redemption options allowing up to 90% instant withdrawal (maximum ₹50,000) and full redemption within 1–2 working days. Savings Pro combines the liquidity of a savings account with the growth potential of short-term investments, enhancing customer convenience through a fully digital process via the JioFinance app.

On September 22, 2025, the Government of India signed a $125 million loan agreement with the Asian Development Bank (ADB) to strengthen infrastructure in Assam. The initiative, called the Assam Urban Sector Development Project, aims to improve urban water supply, enhance flood management systems, and promote better urban governance. Around 360,000 residents are expected to benefit directly from this project. Key interventions include constructing six water treatment plants, laying 800 km of pipelines, and upgrading Guwahati’s drainage systems to reduce flooding. Additionally, institutional reforms such as GIS-based property tax databases and digital billing systems will ensure transparency and financial sustainability.

PhonePe received final approval from the Reserve Bank of India (RBI) on September 19, 2025, to operate as an online payment aggregator. This authorization allows the fintech platform to provide secure and scalable digital payment solutions, particularly benefiting small and medium enterprises (SMEs) that previously lacked easy access to online payment infrastructure. As a payment aggregator, PhonePe will act as an intermediary between customers, merchants, and banks, ensuring secure transactions, operational transparency, and consumer protection. The move strengthens India’s digital payments ecosystem and supports financial inclusion by enabling seamless digital transactions for a wider range of businesses across urban and rural areas.

India signed a $126 million loan agreement with the Asian Development Bank (ADB) to boost sustainable tourism in Uttarakhand, particularly focusing on Tehri Garhwal District. The project is expected to benefit nearly 87,000 local residents while enhancing the experience for about 2.7 million annual visitors. The funding will help in strengthening tourism planning, improving infrastructure, ensuring proper sanitation and waste management, and enhancing disaster preparedness in the region. By promoting environmentally responsible and culturally sensitive tourism, the project aims to balance economic development with ecological preservation, creating long-term benefits for both local communities and visitors.