SBI and AFD Sign €100 Million Line of Credit to Boost Green Financing in India.
Banking & Finance
On August 30, 2025, the State Bank of India (SBI) and Agence Française de Développement (AFD) formalized a €100 million (approximately ₹900 crore) Line of Credit (LoC) agreement at SBI's GIFT City branch in Gandhinagar, Gujarat. This collaboration aims to accelerate India's transition to a low-carbon economy by supporting climate mitigation and adaptation projects.
- The funds from this LoC will be directed towards initiatives that reduce greenhouse gas emissions and enhance resilience to climate-related risks. SBI has set an ambitious target to increase its green loan portfolio to 7.5–10% of its domestic advances by 2030, aligning with national and international climate goals.
- The partnership also allows SBI to leverage AFD’s global expertise in green technology, project structuring, and environmental, social, and governance (ESG) practices.
Main Point :- (i) As of June 2025, SBI, India's largest lender, holds a deposit base exceeding ₹54.7 lakh crore. The bank has been actively raising LoCs from multilateral and development finance institutions to support sustainable activities. Through this collaboration with AFD, SBI aims to advance its green finance roadmap and enable impactful climate solutions across India.
(ii) The agreement was finalized at SBI's GIFT City branch in Gandhinagar, Gujarat, on August 30, 2025.
(iii) This strategic move underscores SBI's commitment to financing sustainable growth and achieving a green portfolio constituting 7.5–10% of its domestic gross advances by 2030. The partnership reflects an unwavering commitment to sustainability and the vision of a developed India by 2047.
About SBI
Chairman : Challa Sreenivasulu Setty
Headquarter : Mumbai
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