SBI to encourage corporates to implement emission reduction technology

State Bank of India, the country's largest lender will encourage corporates to implement emission reduction technologies and get better terms for availing finance, an official of the bank said on Thursday.

Ashwini Kumar Tewari, the managing director (risk, compliance and stressed assets resolution group), SBI, said that the bank will see how it can help corporates in this regard but at the moment does not ask them of their plans for net zero.

At present SBI gives 25 basis points concession on interest rates for electric vehicles. At a later stage, corporates with a better ESG (environment, social and corporate governance) score will get better terms for getting finance from it, he said.

"We don't ask for net zero plan from the companies now. Ultimately, we will go to it. We will start conversation with the corporates and that process will start," he said at the sidelines of the banking conclave organised by CII here.

'Net zero' emissions refer to the acheiving of an overall balance between greenhouse gas (GHG) emissions produced and GHG emissions taken out of the atmosphere.

Earlier speaking at the conclave, Tewari said that banks still remain a major source of funding for the country though

the banking industry is facing competition with the growth of the equity market and NBFCs.

"The banking sector needs to be shepherded. Unlike the NBFCs which can reach the last mile, banks have high cost of operations", he said.