Our efforts to measure, manage and mitigate the impact of business on environment and embedding sustainability in our operations and product offerings is a deep-rooted commitment.
The Bank marks 70 years of service, contributing to India’s development. Driving sustainable and inclusive growth has been a long-standing commitment, since its inception as a development finance bank in 1955. Over the years, while the focus on social transformation continues steadfast, environmental action has also gained significance. Since 2010, the Bank has been increasing emphasis on prudent use of natural resources and exploring adoption of clean technology, with the objective to create a positive environmental impact. Through a dedicated team set up for the purpose, measuring the environmental footprint of the Bank’s operations was measured in terms of trees and water saved. This led to a steady reduction in energy consumption and waste generation. Apart from reducing paper consumption in internal processes and operations, savings in paper use was also driven through adoption of e-statements and sending e-greetings, even before these became established practices in the Indian banking sector. The Bank also registered a trademark ‘Go Green’ in 2010, to build awareness and foster a culture of environmental consciousness among our stakeholders.
The Bank has been building capabilities towards measuring its carbon footprint and taking purpose-oriented actions. During fiscal 2025, the Bank’s focus was towards improving data availability, enhancing data governance to facilitate measurement of impact on the environment, as well as identifying opportunities for sustainable development. The Bank recognises the importance of embedding environmental stewardship in its operations and lending activities to drive resilience and support the transition to a low-carbon economy. With this in mind, the Bank continues building its understanding on improving resource efficiency, opportunities for sustainable lending, supporting nature-positive projects and advancing awareness.
The Bank’s sustainable lending portfolio, defined based on the Bank’s Framework for Sustainable Financing, continued to expand in fiscal 2025. At March 31, 2025, the Bank’s outstanding portfolio was ₹906.24 billion, encompassing sectors like renewable energy and allied activities, electric vehicles, green certified real estate, waste management, water sanitation, green hydrogen/electrolysers and positive impact sectors like lending to weaker sections under priority sector norms of Reserve Bank of India. The Bank’s green financing portfolio accounted for 34.2% of the total sustainable lending portfolio.
In a rapidly evolving landscape, addressing concerns related to impact on environment and recognising climate adaptation and mitigation efforts are strategic requirements for long-term stability and sustainable growth. The Bank recognises the role a financial institution can play in driving sustainable socio-economic development that benefits all stakeholders. In this context, consideration of ESG parameters in lending decisions and risk management framework are important factors, and the Bank has adopted several approaches. Assessment of ESG risks include social and environmental evaluation of project financing proposals, integrating climate change and ESG issues into the credit evaluation process, establishing framework for consistent and comprehensive tracking of sustainable lending by the Bank, and evaluating climate change impact in operations and business.
Social and Environmental Management Framework
ESG Risk Assessment Tool for 20 Sectors
Framework for Sustainable Financing
Climate Risk Management Framework
The Bank’s policies and frameworks are periodically reviewed and updated to ensure relevance and to factor in the evolving market dynamics.
Strengthening operational resilience to climate risks has become an important component of enhancing business continuity framework, especially in vulnerable geographies. During fiscal 2025, the Bank, in consultation with an external agency, carried out an assessment of the impact of simultaneous occurrence of extreme natural disasters like floods and cyclone at key primary and alternate locations identified, based on the nature of activities that can have a significant impact on the Bank’s critical operations from customers’ perspective.
To embed sustainability in business activities, a dedicated climate risk team has been established. Key responsibilities of the team include policy and framework development, risk identification and assessment, data and metrics, and capacity building. The team works closely with the ESG team, and supporting in engagement with external stakeholders like regulators and rating agencies.
Guided by the principles of efficiency, simplification and long-term sustainability, the Bank is committed to minimising the environmental impact of its internal operations. The legacy of resources conservation continues, centred around ongoing digitisation and simplification of operations, to improve customer experience, energy and water conservation at our premises, and promoting circularity measures like waste management and promulgation of the 4R principles.
The Bank is also promoting adoption of internationally acceptable standards on occupational health and safety for our workforce.
The Bank has been actively taking initiatives considering its nation-wide footprint. Few key initiatives during fiscal 2025 included:
Nature-based projects to address issues like climate change, biodiversity loss, water security, disaster risk and community well-being are extensively undertaken under the Bank’s corporate social responsibility initiatives. Projects have been executed in the areas of water conservation, forest conservation, plantation and protecting biodiversity, which are contributing towards restoring ecological balance in the specific regions.
