The State Bank of India, under the aegis of the Department of Financial Services (DFS), today hosted a seminar on ‘Climate Finance and Risk’ in New Delhi, attended by leading public and private sector banks, NABARD, NaBFID, SIDBI, RBI, and policymakers, including top functionaries from the Ministry of Finance, Ministry of Environment, Forest, Climate Change, the Reserve Bank of India, and the World Bank.
India ranks 7th among the world’s most affected by climate change, yet a relatively small share of climate capital flows into India.
The workshop was part of an industry-wide effort to delve into the complexities of climate finance, examine its opportunities and challenges, and find practical and impactful solutions to climate change.
SBI Chairman Dinesh Khara said, “There is a need to mobilise domestic and international flows from retail as well as institutional investors to meet the green finance needs, and robust climate-focused frameworks backed by central regulations.”
Key observations at the workshop, organised in collaboration with McKinsey & Company, included the gap in climate finance in India, avenues for mobilizing private capital in emerging markets towards climate-friendly initiatives, and the importance of fostering green investments and accelerating the transition to a low-carbon economy.
The key themes to escalate the green financing in India were also deliberated in the seminar; such as the role of banks and government, the role of public-private institutions and the role of financial institutions in building internal capabilities.
Dr Vivek Joshi, Secretary, DFS, emphasized “the steps taken by India to address the climate change issue and urged banks to collaborate and create policies for mobilizing capital towards mitigation and adaptation finance. He also highlighted the fact that the financial sector is well positioned to incite a behavioural change in corporates and contribute towards building a sustainable society.”
State Bank of India is the largest commercial bank in terms of assets, deposits, branches, customers, and employees. It is also the largest mortgage lender in the country which has so far fulfilled the home-buying dreams of over 30 lakh Indian families. The home loan portfolio of the bank has crossed Rs. 6.40 lakh crore.
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