Green Finance and Its Role in Sustainable Development: A Study of Suitable Organisation at SBI

Abstract

Green finance has emerged as a transformative mechanism for directing capital flows toward environmentally sustainable economic activities. As climate change, resource depletion, and environmental degradation intensify globally, financial institutions are increasingly called upon to align their lending, investment, and operational practices with sustainability principles. State Bank of India (SBI), as India's largest public sector bank with assets exceeding Rs. 61 lakh crore and over 500 million account holders, occupies a uniquely influential position in channelling green finance toward sustainable development goals. This study examines SBI's green finance initiatives, including its green bond issuance, sustainabilitylinked loans, renewable energy financing portfolio, and environmental risk management framework, over the period FY 2019-20 to FY 2023-24. Primary data was collected through structured questionnaires administered to 100 SBI customers and branch officials in Hyderabad. Secondary data was sourced from SBI Annual Reports, RBI Sustainable Finance publications, SEBI Green Bond guidelines, and academic literature. Findings confirm SBI's growing green finance portfolio, with renewable energy lending growing at 28% CAGR over the study period. Key challenges include green washing risk, borrower awareness gaps, and the absence of a standardised national green taxonomy. Recommendations include strengthening SBI's green bond framework, expanding financial literacy on sustainable finance, and integrating ESG risk scoring into the credit appraisal process