SUSTAINABLE BANKING-

RELEVANCE AND
SIGNIFICANCE
ROLE OF BANKS IN PROMOTING SUSTAINABLE PROJECTS
 OUR TEAM

Ayush Mishra Shuvam kumar Arun Kumar Nayak Madhusmita Punam

(23DM083) (23DM057) (23DM033) Sahoo Priyadarshini
(23DM091) Das (23DM079)
CONTENT:-
Introduction

Importance Of Sustainable Banking In Today's World

Relevance and Significance of Sustainable Banking

Strategies for Banks to Promote Sustainability

Green Banking & Sustainability in Different banks

Role of Banks in Promoting Sustainable Projects

CONCLUSION
Introduction:-
 Sustainable banking refers to the practice of conducting banking
operations in a manner that aligns with environmental, social, and
economic sustainability principles.
 It involves integrating environmental, social, and governance (ESG)
criteria into banking activities to ensure long-term viability and positive
impact.
Importance Of Sustainable Banking
In Today's World:-

● In the face of global challenges such as climate change, social inequality,

and resource depletion, sustainable banking plays a crucial role in addressing
these issues.
● It serves as a catalyst for transitioning towards a more environmentally friendly,
socially equitable, and economically stable future.
● Sustainable banking is increasingly recognized as essential for mitigating risks,
enhancing reputation, and fostering innovation in the banking sector.
Relevance and Significance of
Sustainable Banking:-
Mitigating climate change

Promoting social equity

Enhancing long-term economic
stability
Meeting stakeholder expectations
Role of Banks in Promoting Sustainable
Projects:-

Financing Supporting green

renewable energy infrastructure
projects development

Investing in Providing loans for

sustainable energy-efficient
agriculture buildings
Green Banking & Sustainability in HDFC:-

 HDFC Bank aims to be carbon neutral by 2031-32.

 Initiatives include reducing emissions, energy, and water
consumption.
 Increasing the use of renewable energy.
 Offering lower interest rates on loans for green products like
electric vehicles.
 Incorporating ESG scores in credit decisions.
 Developing a framework for issuing green bonds.
 Three-pronged strategy: reduce consumption, transition to
renewable energy, offset carbon footprint.
PRODUCTS:-
Green Car Loans:HDFC offers car loans up to 25 lakhs at an interest rate of 9.40%.

Salaried Individuals:​​
 This includes employees of private limited companies, employees from public sector undertakings, including central, state and local
bodies
 Individuals who are a minimum of 21 years of age at the time of applying for the loan, and no older than 60 at the end of the loan tenure
 Individuals who have had a job for at least 2 years, with a minimum of 1 year with the current employer
 Those who earn a minimum of Rs. 3,00,000 per year, including the income of the spouse/co-applicant
 Individuals who have a telephone/post-paid mobile

Self Employed Individuals and Professionals (Sole Proprietorship):

 This includes self-employed sole proprietors in the business of manufacturing, trading or services
 Individuals who are a minimum of 21 years of age at the time of applying for the loan, and no older than 65 at the end of the loan tenure
 Those who have been in business for a minimum of 2 years
 Should earn at least Rs. Rs. 3,00,000 per annum
How To Apply:-
1. Check Eligibility: First, make sure you're eligible. You need to be at least 18, have an Indian PAN Card, agree

to Aadhaar verification, and be in India. Also, figure out how much you can borrow based on your income and
expenses.

2. Upload Documents: Gather and scan your documents. You'll need your PAN card, an ID with your photo and

birth date, an address proof, and proof of income like salary slips and Form 16. If you need more than the
allowed amount, you might need to share bank statements .

3.Approval Process: Once you send your documents, the bank will review them. If everything's okay, they'll

approve your loan in about 30 minutes. Then, the money will be sent to the car dealer within 48-72 hours. After
that, you might need to provide a few more documents within 10 days .
 PRODUCTS:-
Gold Loans: If you're an Indian resident aged 18 to 75, whether you're a businessman, trader,

farmer, salaried, or self-employed, you can get a Gold Loan from HDFC Bank. The interest rate is
9%, and you can borrow starting from ₹25,000 using your gold as security.

Documents:-
1. Choose One ID Proof: You need to submit one of these:
- Passport (must be valid)
- Driving License (must be valid)
- Voter's ID Card
- Aadhaar Card issued by UIDAI
- PAN Card (along with any of the above)

2. Passport Size Photo: Include a passport-size photograph.

3. For Agricultural Customers: If you're an agricultural customer and opting for bullet repayment, you’ll
need relevant agricultural occupation documentation.
BANK OF BARODA:-
 Bank of Baroda launches 'Green Initiatives' named bob Earth.

 Energy-efficient infrastructure with TAB banking, digitization, and

automation.

 Appointment of Green Consultants in 10 zones.

 171 branches running on solar power, reducing carbon emissions.

 Stringent waste segregation, utilizing wet waste for biogas.

 BCC Building awarded IGBC-Gold Rating for Green Building.

 BST building awarded Silver Rating for Green Building.

AXIS BANK:-

 Promotes e-statements and electronic communication.

 Utilizes green building concepts like 'Axis House.'
 Conducts tree plantation (Plant a Sapling initiative).
 Employs renewable energy for street lighting.
 Implements rainwater harvesting and sewage treatment.
 Uses recycled materials for furniture.
 Deploys solar-based UPS for ATMs.
 PRODUCTS:-
● Green car loans – Customers are offered lowered interest rates for purchases
of electric or low-emission vehicles.

● Green savings and bonds – These allow individuals to invest in

projects with a focus on environmental or social issues. Green mortgages – Available to
people purchasing homes with an energy efficiency rating of A or B.

● Green home modernization loans – These enable

homeowners to make energy-saving renovations to their properties.
STATE BANK OF INDIA:-
 Installs windmills for captive power consumption, a first in
Indian banking.

 Offers concessional interest rates for renewable energy projects.

 Provides separate exposure limits for the renewable energy

sector.

 Secures agreements with Multilateral/Bilateral Agencies for lines

of credit for RooftopSolar and other renewable energy projects.
PRODUCTS:-

1. SBI Green Car Loan:- This loan product encourages the adoption of electric vehicles (EVs) and
other eco-friendly cars by offering attractive financing options such as lower interest rates,
longer repayment periods, and special incentives for purchasing EVs.
2. SBI Solar Loan Scheme:-This scheme offers financing for the installation of solar power
systems, including rooftop solar panels, solar water heaters, and solar pumps. It enables
individuals, businesses, and institutions to invest in clean and renewable energy solutions.
3. SBI Green Deposit Scheme:- This scheme allows customers to invest their savings in
environmentally sustainable projects and initiatives. The funds deposited under this scheme are
used to finance green projects such as renewable energy, energy efficiency, waste management,
and sustainable infrastructure.
Features
 Age: 21-70 years. (For sanction of loan)
 Repayment Period: Minimum 3 Years; Maximum 8 Years
 Rate of Interest Fixed: Further concession of 25 BPs Basis Point
Calculation in applicable rate of interest for normal car loan across the
category of customers (Please refer Interest rate chart)

 Interest Rate: From 8.75% to 9.45%

 Margin: Up to 90% of On Road Price (100% on selected Models)
 Salaried
o Statement of bank account for last 6 months. (Submission of Bank
Account Statement is waived for our Salary Package customers who
are maintaining Salary account with us
o 2 passport size photo
o Proof of Identity
o Address Proof
o Income Proof: Latest Salary Slip, Form 16
o I.T. Returns or Form 16 for the last 2 years. (Waived for our Salary
Package customers who are maintaining their salary account with
the Bank for minimum 12 months.)
 Non-Salaried/ Professional/Businessmen
o Statement of bank account for last 6 months.
o 2 passport size photo
o Proof of Identity
o Address Proof
o Income Proof: ITR for last 2 years
o I.T. Returns or Form 16 for the last 2 years.
o Audited Balance sheet, P&L statement for 2 years, Shop &
establishment act certificate / sales tax certificate / SSI registered
certificate / copy of partnership.
 Person engaged in agricultural and allied activities
o Statement of bank account for last 6 months.
o 2 passport size photo
o Proof of Identity
o Address Proof
o Direct agricultural activity (crop cultivation):
Khasra/Chitta Adangal (showing cropping pattern) Patta/Khatoni (showing
land holding) with photograph. All land should be on free hold basis and
ownership proof to be in the name of borrower.
o Allied agricultural activity (like Dairy, Poultry, Plantation/ Horticulture)
Documentary proof of running of the activities to be provided.
 Proof of Identity : - (Copy of any one) Passport/ PAN Card/ Voters ID card/
Driving License etc.
 Address Proof :- (Copy of any one) Ration card/Driving License/Voters ID
card/Passport /Telephone Bill/ Electricity bill/Life Insurance policy
Activities supported through SBI Green
Fund:-
1. Tree Plantation:-
 Planting 5 million trees through SBI GREEN FUND contributions.
 Increasing green coverage to combat climate change.
 Engaging in tree plantation drives and social forestry initiatives.
2. Construction of Bio-Toilets:-
 Constructing 4,000 bio-toilets via SBI GREEN FUND.
 Bio-toilets decompose waste into methane gas and water.
 Prioritizing bio-toilets for sanitation revolution in India.
3. Providing Solar Lamps/Lights/Panels:-
 Providing solar power solutions to households in 5 cities/towns.
 Reducing carbon footprint and promoting sustainable living.
 Funded by SBI GREEN FUND contributions.
Strategies for Banks to Promote
Sustainability:-

Integration of Development
ESG factors Collaboration Education and
of sustainable
into decision- with awareness
stakeholders financial campaigns
making
products
processes
CONCLUSION:-
 Sustainable banking encompasses integrating environmental, social, and governance
(ESG) criteria into banking operations.
 It is essential for mitigating environmental impact, promoting social responsibility, and
ensuring economic sustainability.
 Sustainable banking faces challenges such as regulatory compliance and financial
viability of projects but offers opportunities for innovation and collaboration.
 Strategies for banks to promote sustainability include integrating ESG factors,
collaborating with stakeholders, developing sustainable products, and conducting
education campaigns.