Indian banks are warming up to financing renewable energy projects in line with the government’s vision to become more climate sensitive.
Companies, too, are switching to more eco-friendly options, creating the space for higher lending to this sector.
The outstanding bank loans to the sector have grown at over 100% year-on-year, indicating momentum in underwriting renewable energy loans. According to Reserve Bank of India data, outstanding bank loans to this sector more than doubled to ₹4,191 crore at the end of October 21, 2022, as compared with ₹2,073 crore a year back.
