SBI Pushes for Credit Guarantees and Green Finance Inclusion

State Bank of India (SBI) is discussing with the government the establishment of a credit guarantee scheme for new-age sectors. SBI's Managing Director Ashwini Kumar Tewari advocates for green finance inclusion in priority lending, despite RBI's hesitance. Meanwhile, SBI plans to open a Centre of Excellence focused on high-priority sectors, including renewable energy.

State Bank of India (SBI), the country's largest lender, is engaging in discussions with the government regarding a credit guarantee scheme for new-age and riskier sectors, according to Managing Director Ashwini Kumar Tewari's statement on Monday.

SBI is advocating for the inclusion of green finance in the priority sector lending mandate; however, the Reserve Bank of India (RBI) and the government are concerned about potential crowding-out effects. Tewari, speaking at the CII Finance Summit, highlighted upcoming initiatives including the establishment of a Centre of Excellence (CoE) to assist in policy drafting, risk assessment, and pricing.

The CoE will target sectors such as electric vehicles and renewable technology. Tewari announced that SBI has significantly financed the renewable energy sector, supporting solar rooftop installations for households, and emphasized the positive trend of refinancing in the bond market and private equity funds.

(With inputs from agencies.)