SBI aims to hike its green advances portfolio up to 10 pc by 2030

SBI Sets Bold Green Financing Goal

State Bank of India, the nation's largest lender, has announced plans to significantly expand its green advances portfolio.

The bank aims to raise this share to between 7.5 and 10 percent by 2030, a substantial jump from the current 1.56 percent of total advances recorded as of March 31, 2025.

This move underscores SBI's commitment to fueling India's transition to a low-carbon economy, channeling funds into environmentally friendly projects.

Green advances refer to loans extended for initiatives that promote sustainability, such as renewable energy installations and energy-efficient infrastructure.

By prioritizing these loans, SBI positions itself as a key player in bridging the funding gap for green projects across the country.

To achieve this target, SBI plans to fund 25 percent of its green advances through dedicated green lines of credit.

These specialized credit facilities are designed specifically for eco-friendly ventures, making it easier for businesses and projects to access capital without the hurdles of traditional lending.

This strategy not only accelerates the growth of sustainable financing but also aligns with global trends where banks are increasingly tying their portfolios to climate goals.

SBI's initiative comes at a time when India is ramping up its efforts to meet international climate pledges, including expanding non-fossil energy capacity.

The bank's focus reflects a broader shift in the financial sector toward responsible investing that balances profitability with planetary health.

Launch of CHAKRA Centre Boosts Sunrise Sectors

In a strategic step to support this ambition, SBI has unveiled CHAKRA, a dedicated Centre of Excellence.

This new unit will spearhead financing for emerging "sunrise" sectors like renewable energy, electric mobility, and green hydrogen.

These areas are critical for India's clean energy future, with green hydrogen poised to decarbonize hard-to-abate industries such as steel and transportation.

The centre aims to streamline funding for projects that align with national missions, including the National Green Hydrogen Mission, which targets producing five million tonnes annually by 2030.

By creating this specialized hub, SBI can offer tailored financial products, expertise, and risk assessment tools to innovators in these fields.

This launch is expected to unlock billions in investments, fostering job creation and technological advancements in sustainable technologies.

CHAKRA's establishment highlights SBI's proactive role in India's green transition.

It will focus on sectors backed by government incentives and global demand, ensuring that financing flows efficiently to high-impact projects.

For instance, electric mobility could see loans for EV manufacturing and charging networks, while renewable energy financing might cover solar farms and wind projects.

Green hydrogen initiatives, in particular, hold immense promise as a clean fuel alternative, reducing reliance on fossil fuels.

Through CHAKRA, SBI not only meets its internal targets but also contributes to the country's vision of self-reliance in energy.

Green Marathon and Long-Term Sustainability Pledges

Complementing its financial strategies, SBI continues to engage communities through events like the sixth edition of the SBI Green Marathon.

Launched in 2018, this nationwide initiative promotes environmental awareness under the theme 'Run For A Greener India.'

The latest season started in Lucknow and spanned 17 cities, including Mumbai, where over 10,000 participants ran in 5km, 10km, and 21km categories.

The marathon aligns with India's Mission LiFE, encouraging lifestyle changes for a sustainable future.

Sustainability is integral to our purpose and the Green Marathon is a symbol of our belief that meaningful climate action begins with individual responsibility and scales through collective commitment. As we progress towards carbon neutrality by 2030 and Net Zero by 2055, we remain committed to financing India's green transition and enabling collective climate action. - Rama Mohan Rao Amara, SBI Managing Director

SBI has also made firm commitments to its own operations, targeting carbon neutrality by 2030 and net zero emissions by 2055, coinciding with its centenary year.

These pledges cover scopes 1 and 2 emissions initially, with a pathway to full net zero including scope 3.

The Green Marathon and similar efforts build public momentum, tying grassroots action to corporate strategy.

By blending community events with robust financing plans, SBI demonstrates a holistic approach to sustainability.

This multi-faceted strategy positions the bank as a leader in climate finance, inspiring other institutions to follow suit.

In summary, SBI's target to elevate green advances to up to 10 percent by 2030, powered by CHAKRA and community initiatives like the Green Marathon, signals a strong push toward sustainable banking.

These efforts support India's green energy ambitions and long-term climate goals, promising a greener economic landscape for generations ahead.