The country’s largest private sector bank is aiming to become carbon-neutral by 2032, its Deputy Managing Director Kaizad Bharucha has said.
“We are working towards becoming carbon-neutral by 2032. The work has started. We've conducted an afforestation project in Assam, launched green bonds, and organised a tree plantation drive, among other projects,” Bharucha said while addressing the press in Varanasi on the 10th anniversary of Parivartan, the lender’s corporate social responsibility (CSR) programme.
Bharucha said the bank raised $300 million via green bonds on February 7, 2024. “The bond proceeds will be utilised to fund green and social loans in accordance with sustainable finance norms,” the bank had said in a press release in February. In addition, the bank is also looking at special financing for MSMEs (micro, small, and medium enterprises) operating in the green space and EVs (electric vehicles), besides afforestation projects in the north east and elsewhere in the country.
For a company, being carbon-neutral means that it compensates for its emissions through different carbon-offsetting projects.
Under its Parivartan programme, by 2025, the bank plans to increase the income of five lakh marginal farmers earning less than Rs 60,000 annually. It is also aiming to upskill nearly 2 lakh individuals and plans to promote local economies and sustainable livelihoods through 20,000 institutions.
“With a CSR expenditure of over Rs 5,100 crore over the last decade, Parivartan has consistently aimed to empower individuals by fostering sustainable livelihoods and development,” the bank said in a press release.
On green deposits
In April 2023, the Reserve Bank of India (RBI) had announced a framework for offering green deposits to customers, aimed at developing a Green Finance Ecosystem (GFS) in the country. Banks and non-banks can receive interest-bearing deposits for a fixed period, with the monies earmarked for green projects. Bharucha said the bank is compliant with the RBI framework.
According to the bank's website, it offers green and sustainable deposits of different tenures at interest rates ranging between 6.95 to 7.55 percent.
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