Gandhinagar: State Bank of India (SBI) has signed a €100 million Line of Credit agreement with Agence Française de Développement (AFD) at its GIFT City branch in Gandhinagar to strengthen green financing initiatives in India. The funding will be directed towards projects that mitigate greenhouse gas emissions and build resilience against the impacts of climate change. By securing this facility, SBI aims to scale up financing for renewable energy, energy efficiency, and other sustainability-linked projects.
SBI has set a target to expand its green portfolio to 7.5–10 percent of its domestic gross advances by 2030, and the agreement with AFD marks a step toward achieving this goal. The deal reflects the increasing role of Indian lenders in mobilising capital for climate-sensitive sectors and comes at a time when financial institutions are facing greater scrutiny over environmental risks in their portfolios.
The collaboration also enables SBI to draw on AFD’s expertise in structuring climate finance and aligning with international sustainability frameworks. This includes the adoption of ESG practices and support for innovative green technologies that ensure measurable environmental and social outcomes. The arrangement further highlights GIFT City’s growing importance as a hub for cross-border sustainable finance.
The agreement points to a wider trend of global development institutions partnering with Indian banks to channel funds into low-carbon transition efforts. For SBI, the partnership strengthens its position in advancing India’s climate agenda while reinforcing the financial sector’s role in addressing long-term environmental challenges.
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