SBI Secures EUR 100 Million Green Credit Line from AFD

1 min read     Updated on 31 Aug 2025, 12:25 AM
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Overview

State Bank of India (SBI) has signed a €100 million Line of Credit agreement with Agence Française de Développement (AFD) at SBI's GIFT City branch in Gandhinagar. The credit line aims to support climate mitigation and adaptation projects, aligning with SBI's goal to achieve a green portfolio of 7.5-10% of its domestic gross advances by 2030. This collaboration provides SBI with access to AFD's expertise in climate finance, enables competitive financing for green projects, and supports the integration of ESG factors into financing decisions. The partnership is expected to contribute significantly to India's transition towards a low-carbon economy.

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*this image is generated using AI for illustrative purposes only.

State Bank of India (SBI), India's largest public sector bank, has taken a significant step towards promoting sustainable finance by signing a EUR 100 million Line of Credit agreement with Agence Française de Développement (AFD). The deal, inked at SBI's GIFT City branch in Gandhinagar, underscores the bank's commitment to supporting climate action and sustainable development.

Key Highlights of the Agreement

Item Detail
Credit Amount EUR 100.00 million
Partner Agence Française de Développement (AFD)
Signing Location SBI's GIFT City branch, Gandhinagar

Objectives of the Credit Line

The funds from this credit line are earmarked for two primary purposes:

  1. Climate Mitigation: Supporting actions aimed at reducing greenhouse gas emissions
  2. Climate Adaptation: Financing measures to minimize damage from climate change

Alignment with SBI's Green Portfolio Goals

This partnership aligns closely with SBI's ambitious environmental targets. The bank aims to achieve a green portfolio comprising 7.5-10% of its domestic gross advances by 2030. This credit line is expected to play a crucial role in helping SBI meet this objective and contribute to India's transition towards a low-carbon economy.

Benefits of the Collaboration

The collaboration between SBI and AFD is set to yield several advantages:

  1. Access to Expertise: SBI gains access to AFD's extensive knowledge in climate finance
  2. Competitive Financing: Enables SBI to offer attractive financing solutions for green projects
  3. Support for Green Technologies: Facilitates funding for innovative and sustainable technologies
  4. Project Structuring: Assistance in structuring environmentally friendly projects
  5. ESG Integration: Promotes the integration of Environmental, Social, and Governance (ESG) factors into financing decisions

Implications for India's Green Economy

This agreement represents a significant step in strengthening India's efforts to transition to a low-carbon economy. By channeling funds towards climate-friendly projects and initiatives, SBI and AFD are contributing to the country's broader sustainability goals and international climate commitments.

The partnership between State Bank of India and Agence Française de Développement marks a notable development in the Indian banking sector's approach to green financing. As climate change concerns continue to grow globally, such collaborations between financial institutions and international development agencies are likely to play an increasingly crucial role in shaping sustainable economic growth.

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SBI Hikes Home Loan Rates by 25 Basis Points, Impacting New Borrowers

1 min read     Updated on 18 Aug 2025, 11:07 PM
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Overview

State Bank of India (SBI) has announced a 25 basis point increase in its home loan interest rates, effective August 1, 2025. The new rates for standard home loans will range from 7.50% to 8.70%, primarily affecting new borrowers with lower credit scores. SBI has also adjusted rates for other loan products, including Home Loan Maxgain, Top Up Loans, and Loan Against Property. This move could impact SBI's competitiveness in the home loan market, especially for customers with lower credit scores. Private banks like HDFC Bank, ICICI Bank, and Axis Bank offer varying starting rates for home loans, ranging from 7.70% to 8.35%.

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State Bank of India (SBI), India's largest public sector bank, has announced a significant increase in its home loan interest rates, primarily affecting new borrowers with lower credit scores. The move, set to take effect from August 1, 2025, marks a 25 basis point rise in the upper band of loan rates.

New Rate Structure

The revised interest rates for standard home loans will now range from 7.50% to 8.70%, up from the previous range of 7.50% to 8.45%. This adjustment primarily impacts borrowers with lower credit scores, who may find themselves subject to higher interest rates.

Impact on SBI's Loan Portfolio

Home loans constitute the largest component of SBI's retail loan portfolio, making this rate hike a significant development for both the bank and potential borrowers. The increase could potentially affect the bank's competitiveness in the home loan market, especially for customers with lower credit scores.

Other Loan Products Affected

SBI has also adjusted rates for other loan products:

Loan Type New Interest Rate Range
Home Loan Maxgain 7.75% - 8.95%
Top Up Loans 8.00% - 10.75%
Loan Against Property 9.20% - 10.75%

Comparison with Private Banks

Private banks maintain different pricing structures for home loans:

Bank Starting Interest Rate
HDFC Bank 7.90%
ICICI Bank 7.70%
Axis Bank 8.35%

These private sector competitors offer varying rates based on credit scores, with some providing fixed-rate options and customized pricing for different borrower profiles.

Implications for Borrowers

The rate hike by SBI underscores the importance of maintaining a good credit score for prospective home loan applicants. Borrowers with higher credit scores are likely to secure more favorable interest rates, while those with lower scores may face higher borrowing costs.

As the lending landscape evolves, potential homebuyers are advised to compare offers from various banks and financial institutions to secure the most competitive rates. The diverse pricing structures and customized options available in the market highlight the need for thorough research and consideration before committing to a home loan.

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