SBI expects to have 7.5% of domestic loans in the green sector by 2030

The State Bank of India (SBI), the country’s largest lender, plans to provide at least 7.5% of its domestic loans to the green energy sector by 2030 as part of its effort to make India carbon neutral.

As of the end of FY24, the bank’s total loan book was Rs 37.67 trillion. As of March 2024, it had approved loans of Rs 47,419 crore for projects involving renewable energy.

During FY24, SBI established the ESG and Climate Finance Unit to focus on Environmental, Social, and Governance (ESG) and climate finance initiatives. This unit aims to guide SBI towards a net-zero target by 2055 and ensure that 7.5% of its domestic loans are green by 2030. Additionally, SBI formed a high-level climate change risk management committee to enhance governance and integrate climate risk considerations into its framework.

In FY24, SBI raised $250 million through green bonds and secured $770 million in credit from the World Bank for solar rooftop projects. To promote green financing, SBI introduced schemes like electric vehicle loans with interest concessions and extended terms and financing for solar rooftop installations. The “Surya Shakti Solar Finance” scheme supports SMEs needing solar systems, and the bank also offers credit for biofuel projects.

SBI’s green push aligns with global regulatory pressures, including SEBI’s mandate for Scope 3 emissions disclosure and the RBI’s draft guidelines on climate-related financial risk disclosures.


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