State-owned banks in India recorded a sharp rise in green deposit mobilisation in FY26, reflecting growing depositor awareness and the increasing maturity of the Reserve Bank of India’s (RBI) Green Deposit Framework introduced in 2023.
According to an analysis of annual reports, eight public sector banks collectively raised ₹3,733.11 crore in FY26 through green deposits, nearly double the ₹1,831.79 crore mobilised in the previous financial year. The increase highlights a broader shift towards sustainable finance, with banks aligning their fundraising and lending activities with environmentally responsible projects.
State Bank of India (SBI), the country’s largest lender, mobilised ₹317.39 crore in green deposits up to March 2026, with outstanding green deposits at ₹218 crore. The bank reported that ₹189.08 crore raised during FY26 was deployed entirely in clean transportation, particularly electric vehicle loans. SBI’s green car loan portfolio stood at ₹3,587 crore as of March 31, 2026.
Bank of Baroda (BoB) reported green deposits of ₹1,164.44 crore in FY26, marginally higher than the previous year. The bank said the entire proceeds were directed towards renewable energy and clean mobility projects, with its total green deposit portfolio reaching ₹1,899.12 crore.
Other public sector banks also channelled green deposit proceeds primarily into renewable energy, solar power, and sustainable infrastructure projects.
The RBI’s framework, effective from June 2023, allows banks to raise deposits specifically for funding eligible green activities, including renewable energy, clean transportation, sustainable water management, and climate adaptation initiatives, reinforcing India’s transition towards sustainable banking practices.
