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State Bank of India's Renewable Energy Finance Exceeds ₹319.18 Billion

Strategic Insights

— 2 min read

The State Bank of India has declared its financial results for FY 2020-2021, showcasing its significant investments in renewable energy financing. The bank has approved over ₹319.18 billion (~$4.26 billion) in renewable energy project finance in India as of March 2021. This substantial investment is a testament to the bank's commitment to promoting sustainable energy and reducing its environmental footprint. With a focus on various segments such as ground-mounted solar power, wind energy, and grid-connected rooftop solar power, SBI has made a notable impact in the renewable energy sector.

Key Takeaways:

  • SBI has financed 752 renewable energy projects with a total installed capacity of 13,801.7 MW until March 31, 2021.
  • The financing includes ₹185.65 billion (~$2.48 billion) for solar photovoltaic (PV) ground-mounted projects; ₹18.64 billion (~$249.21 million) for rooftop solar projects; ₹91.37 billion (~$1.22 billion) for wind energy; ₹20.93 billion (~$279.8 million) for small hydro projects; ₹1.65 billion (~$22.05 million) for biomass projects; and ₹940 million (~$12.56 million) for waste-to-energy projects.
  • SBI has approved ₹6.88 billion (~$91.94 million) for the grid-connected rooftop solar PV projects program, aimed at popularizing the use of renewable energy among commercial and industrial (C&I) entities with smaller roofs.
  • The bank has also allocated ₹142.1 million (~$1.89 million) towards e-rickshaws under the e-rickshaw program as of March 31, 2021.
  • SBI has signed a memorandum of understanding with the Luxembourg Stock Exchange to boost the environmental, social, and governance (ESG)-focused funds and bonds market.
  • The bank received an A rating from the Morgan Stanley Capital International ESG Ratings in December 2020, a significant improvement considering it was rated BB in September 2020.
  • SBI has partnered with several international banks and funding agencies to amplify its responsible investment activities, including the World Bank, KfW German Development Bank, European Investment Bank (EIB), and others.

Statistics:

  • ₹319.18 billion (~$4.26 billion) approved for renewable energy project finance in India as of March 2021.
  • 752 renewable energy projects financed with a total installed capacity of 13,801.7 MW until March 31, 2021.
  • ₹185.65 billion (~$2.48 billion) for solar photovoltaic (PV) ground-mounted projects.
  • ₹18.64 billion (~$249.21 million) for rooftop solar projects.
  • ₹91.37 billion (~$1.22 billion) for wind energy.
  • ₹20.93 billion (~$279.8 million) for small hydro projects.
  • ₹1.65 billion (~$22.05 million) for biomass projects.
  • ₹940 million (~$12.56 million) for waste-to-energy projects.
  • ₹6.88 billion (~$91.94 million) approved for grid-connected rooftop solar PV projects program.
  • ₹142.1 million (~$1.89 million) allocated towards e-rickshaws under the e-rickshaw program as of March 31, 2021.
  • ₹800 million (~$10.56 million) raised through green bonds since FY 2018-19.
  • ₹50 million (~$59.18 million) raised through a green loan in FY 2020-21.

Sources:

  • The State Bank of India
  • Morgan Stanley Capital International ESG Ratings
  • Luxembourg Stock Exchange
  • World Bank
  • KfW German Development Bank
  • European Investment Bank (EIB)
  • Legal Monitor Worldwide
  • SyndiGate Media Inc. (Syndigate.info)

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