SBI and Other PSU Banks Green Deposits Surge in FY26, Backing Renewable Energy and EV Financing

Public Sector Banks nearly doubled their green deposit collections in FY26 as more lenders expanded products linked to environmentally eligible projects, as per PTI's analysis of banks.  

An analysis of annual reports of 8 state-owned banks showed green deposits of ₹3,733.11 crore during the year, compared with ₹1,831.79 crore in FY25.  

The increase follows the implementation of the Reserve Bank of India's Green Deposit Framework in June 2023. 

RBI Framework Shapes Fund Use 

The RBI framework allows banks to raise deposits that are earmarked for financing specific green sectors. These include renewable energy, clean transportation, sustainable water management, and climate adaptation projects.  

The framework was introduced to create a transparent process for raising and deploying green deposits. 

Bank of Baroda Tops Collections 

Bank of Baroda mobilised ₹1,164.44 crore through green deposits in FY26, up from ₹1,083.09 crore in the previous year. Its green deposit portfolio stood at ₹1,899.12 crore as of March 31, 2026. 

The bank said the entire amount has been deployed in renewable energy and clean mobility projects, according to its annual report. 

SBI Links Deposits to EV Loans 

State Bank of India raised ₹317.39 crore through green deposit products by the end of FY26, while outstanding green deposits stood at ₹218 crore. During the year, the bank mobilised ₹189.08 crore, which was used for financing its green car loan portfolio.  

SBI reported that its electric vehicle loan book had reached ₹3,587 crore as of March 31, 2026. 

Read More: NSE Indices Introduces 11 New Sectoral Indices, Expanding Total to 34 for Broader Economic Coverage! 

Conclusion 

Annual reports of state-owned lenders show higher green deposit collections in FY26, with funds largely allocated to renewable energy, electric vehicles and other eligible green sectors. 

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