A yellow, powdery mold on the soil surface and yellow balls at the pot's edge are typically saprophytic fungi feeding on organic matter in the potting mix—not the banana plant itself. This is common in overly moist, organic-rich soils.
The pup (offset) can be separated once it has several leaves of its own. Cut through the underground corm to include a portion of roots with the pup, then plant in its own container. This rejuvenates the mother plant and gives you a new banana plant.
The mold itself is not pathogenic; correcting cultural conditions resolves the issue.
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