Banking

Fino Payments Bank has strongly denied allegations of goods and services tax (GST) evasion in connection with betting-related promotional activities, asserting that its operations remain fully compliant with Indian regulatory and tax frameworks. The bank clarified that it merely provides payment processing infrastructure and does not engage in, endorse, or promote gambling platforms. The clarification comes amid intensified government scrutiny of online gaming ecosystems and financial intermediaries facilitating digital payments.

Rishi Gupta, managing director and chief executive officer of Fino Payments Bank, has been arrested by tax authorities in connection with an ongoing investigation into alleged financial irregularities. The development has sent ripples across the banking and fintech sectors, raising questions about governance standards and regulatory compliance within India’s fast-growing payments ecosystem. While officials have not disclosed detailed charges, the enforcement action underscores intensifying scrutiny of financial institutions.

Bank of Baroda has announced plans to raise up to Rs. 10,000 crore through the issuance of green infrastructure bonds, reinforcing its commitment to sustainable finance and environmentally aligned lending. The fundraising initiative is designed to support renewable energy, clean transportation and other climate-focused projects, while diversifying the bank’s liability profile. As investor appetite for environmental, social and governance (ESG) instruments strengthens, the move positions the public sector lender to tap institutional demand for sustainable assets.

Yes Bank has initiated a review after reports of unauthorised transactions involving certain forex cards surfaced among customers. The lender said it is working to identify the root cause, contain any potential exposure and strengthen monitoring systems. While the bank has not indicated any systemic breach, the episode underscores the growing risks associated with cross-border digital payments.

India’s banking regulator has approved SBI Mutual Fund’s proposal to acquire a stake in Bandhan Bank, marking an important regulatory milestone for both institutions. The clearance from the Reserve Bank of India (RBI) allows the country’s largest mutual fund house to deepen its exposure to the private banking space. The move is being closely watched by investors, as it reflects growing institutional confidence in Bandhan Bank’s long-term fundamentals amid ongoing efforts to strengthen governance, asset quality and growth prospects.

State-owned lender Canara Bank has successfully raised Rs. 5,000 crore through the issuance of bonds, reinforcing its capital position amid steady credit growth and evolving regulatory requirements. The fundraise reflects continued investor confidence in public-sector banks as balance sheets improve and asset quality stabilizes. Proceeds from the bond sale are expected to support business expansion while ensuring compliance with capital adequacy norms.

HSBC’s India operations delivered a robust financial performance in 2025, with profit rising 11 percent year-on-year to $1.9 billion, reflecting sustained growth across core banking segments. The increase was driven by higher interest income, steady credit demand and disciplined cost management, even as global banking conditions remained challenging. Executives said India continues to stand out as a key growth market within HSBC’s global network, supported by economic resilience and expanding corporate and wealth activity.

Global rating agency Fitch Ratings has affirmed the credit ratings of Punjab National Bank and Bank of Baroda, retaining a stable outlook for both lenders. The decision reflects sustained improvement in asset quality, stronger capital buffers and consistent government support for India’s public-sector banking system. Fitch noted that while challenges remain from legacy stressed assets and operating efficiency, the overall risk profile of these banks has improved meaningfully.

The Reserve Bank of India’s Monetary Policy Committee has indicated that an interest rate hike is unlikely in the near term, signaling a cautious approach as it balances inflation management with economic growth. Policymakers appear comfortable with the current monetary stance, citing moderating price pressures and resilient domestic demand. While vigilance remains high amid global uncertainty, the central bank has emphasized continuity and predictability in policy.

India does not currently have a defined roadmap for further mergers among public sector banks, Finance Minister Nirmala Sitharaman said, signaling a pause in consolidation efforts that reshaped the banking landscape in recent years. The government’s focus, she emphasized, is now on strengthening existing institutions through improved governance, credit growth, and financial inclusion rather than structural amalgamations.