An Indian private sector bank has included sustainability in its list of key lending criteria. In FY23, the bank had more than 1,400 corporate borrowers, with total outstanding loans of Rs 3,68,327.66 crore, under the ESG framework.
In its efforts to promote sustainability, the private banking major identified some key segments, like solar and wind power generation, biomass, etc, for financing. In FY23, the bank had total underwritten loans of Rs 15,115 crore for renewable energy projects with a generating capacity of 6,110 MW. Credit limits worth Rs 160 crore were also approved for the electric buses. The bank completed the underwriting of the project term loan facility of Rs 2,143 crore for a natural gas, PNG (Piped Natural Gas), and CNG (Compressed Natural Gas) network project.
On the other hand, the country’s largest public sector bank is also taking big strides in the area of renewable energy financing. In FY23, the bank financed renewable energy projects Rs 36,243.42 crore, with a generating capacity of 23,679.55 MW. The amount sanctioned for solar power projects was Rs 23,916.66 crore, and Rs 3,979.49 crore for the wind power projects. The bank is also giving sustainability-linked loans outside India, and 59 such loans worth USD 2,244 million are active as of now.
Banks are driving their lending capacity in the ESG focused areas that are adding a multiplier effect on their balance sheet, and the overall environment as well.
