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ACCEPT THE UPDATED PRIVACY & COOKIE POLICY Dear user, ET BFSI privacy and cookie policy has been updated to align with the new data regulations in European Union. Please review and accept these changes below to continue using the website. You can see our privacy policy & our cookie policy. We use cookies to ensure the best experience for you on our website. If you choose to ignore this message, we'll assume that you are happy to receive all cookies on ET BFSI. * Analytics * Necessary * Newsletter NameProviderExpiryTypePurpose Google AnalyticsGoogle1 YearHTTPSTo track visitors to the site, their origin & behaviour.iBeat AnalyticsIbeat1 YearHTTPSTo track article's statisticsGrowthRx AnalyticsGrowthRx1 YearHTTPSTo track visitors to the site and their behaviour NameProviderExpiryTypePurpose optoutTimes Internet1 YearHTTPSStores the user's cookie consent state for the current domainPHPSESSIDTimes Internet1 dayHTTPSStores user's preferencesaccessCodeTimes Internet2.5 HoursHTTPSTo serve content relevant to a regionpfuuidTimes Internet1 YearHTTPSUniquely identify each userOSTIDTimes Internet1 YearHTTPSOauth secure tokenOSSOIDTimes Internet1 YearHTTPSOauth user identifierOSTPID Times Internet1 YearHTTPSused to sync accross portalsfpidTimes Internet1 YearHTTPSBrowser Fingerprinting to uniquely identify client browsers NamePurpose Daily NewsletterReceive daily list of important newsPromo MailersReceive information about events, industry, etc. I've read & accepted the terms and conditions NEWS SITES * Auto News * Retail News * Health News * Telecom News * Energy News * CIO News * Real Estate News * Brand Equity * CFO News * IT Security News * Government News * Hospitality News * HR News * Legal News * ET TravelWorld News * Infra News * B2B News * CIOSEA News * HRSEA News * HRME News Upcoming Event: CFO Meet & discussion on Revised Companies Act Sign in/Sign up * Follow us: * * * * * * * ETBFSI Exclusive * BANKING * INSURANCE * InsurTech * NBFC * FINTECH * Payments * Digital Lending * RegTech * Open API * BFSI Videos * Editor's View * Brand Solutions * ETBFSI AWARDS 2022 * ACCELERATE END-TO-END CUSTOMERS' JOURNEYS WITH AN AGILE LENDING SOLUTION * GLOBAL INSURANCE BROKERS PVT. LTD * ETBFSI.COM CONVERGE Thriving in the world of digital * ETBFSI CXO CONCLAVE Connecting Financial Institutions Digitally * LAY THE GROUNDWORK TO ACCELERATE BANKING INNOVATION * ETBFSI FINNEXT SUMMIT The Future of NBFCs and FinTechs * SIDBI-ET MSMES/STARTUPS Roudtable Discussion * REIMAGINE NEXT * LEARNFEST * REIMAGINE NEXT - THE FUTURE OF LEARNING * ETBFSI.COM CONVERGE BFSI: The world of Hyper-personalization * ETBFSI EXCELLENCE AWARDS 2021 AWARDS FOR EXCELLENCE IN INNOVATION * FUTURE READY SECURITY FOR DIGITAL-FIRST BFSI * 3RD EDITION OF ETBFSI CXO CONCLAVE Unlocking the BFSI Potential * THE DIGITAL NEXT: SERIES 2.1 Live Virtual Summit * JOIN THE ECONOMIC TIMES FINANCIAL INCLUSION SUMMIT 2021 * 2ND EDITION OF ETBFSI VIRTUAL SUMMIT 2021 * ET BANKING LEADERSHIP SERIES PRESENTED BY MANIPAL ACADEMY * Millennial Finance * FinTech Diary * ETBFSI Research * Green Finance * IBC * ETBFSI Explains * BFSI Movement * More * Blogs * BFSI Tech Tales * Innovation Masters * POLICY * FINANCIAL SERVICES x * BFSI News * Latest BFSI News * Banking EXCLUSIVE L&T FINANCE REPLACED SBI AS THE BIGGEST RENEWABLE ENERGY FINANCIER IN 2021: STUDY The fifth edition of Coal vs Renewable Financial Analysis, authored by Climate Trends and Centre for Financial Accountability (CFA), was released at CFA's annual energy finance conference hosted in collaboration with IIT Madras on Tuesday. * IANS * December 07, 2022, 07:50 IST * * * * * * * * New Delhi: Coal vs Renewables Financial Analysis 2022 identifies L&T Finance replacing SBI as the biggest financier in project finance for renewable energy in 2021. The fifth edition of Coal vs Renewable Financial Analysis, authored by Climate Trends and Centre for Financial Accountability (CFA), was released at CFA's annual energy finance conference hosted in collaboration with IIT Madras on Tuesday. While the total funding for new energy projects in 2021 is 60 per cent lower compared to 2017 levels, for the first time since reporting it was found that there was no new project finance for coal power projects in year 2021. Finance for renewable energy projects on the other hand has seen a 39 per cent year-on-year increase from 2020. In order to meet its 2030 targets of 450 GW installed capacity, RE will need to be deployed at 2.5 times the current rate. "The writing is on the wall. Lending institutions are increasingly moving away from coal lending given the risks. After Federal Bank, the first commercial bank to have announced a coal exit policy, Sarvodaya Small Finance Bank has also announced an end to financing coal projects. This should signal to institutions who have either provided loans or underwriting services, or have shareholdings in coal companies to rethink their lending," said Joe Athially, Executive Director, Centre for Financial Accountability. Of the total Rs 33,893 crore that went to RE projects, L&T Finance was noted as the largest financier in 2021 pouring Rs 4,214 crore into the sector. Rajasthan followed by Gujarat were the top beneficiaries of renewable energy lending, with Rs 22,187 crore and Rs 4,025 crore being poured into the states, respectively. Collectively they accounted for 77 per cent of all renewable energy loans. By some estimates, India would need $10 trillion to transition to Net Zero by 2070. "The sheer scale of climate finance needed to meet India's mitigation goals will require an all-hands-on deck approach.The recent announcement of the Sovereign Green Bond Framework is encouraging. The green bond issue size is US$2 billion for the fiscal year (FY) 2022-23. While this is dwarfed by the finance India will need ultimately, as such it signals India's ambitions to expand renewable energy and reduce our carbon intensity," said Shivani Shah, Communications Strategist, Climate Trends. Earlier in August, India updated its Nationally Determined Contributions (NDCs) in regards to the Paris Agreement committing to 450 GW non-fossil installed capacity. Further, the draft National Electricity Plan 2022 sees about 18GW reduction in coal capacity by 2030 when compared to the OGC report released in 2020. In order to realise this, state-owned institutions and private banks need to make available cheaper finance for renewable energy projects. Follow and connect with us on Twitter, Facebook, Linkedin, Youtube Banking climate trends centre for financial accountability sbi renewable energy project finance paris agreement l&t finance Read on App Read on App PEOPLE WHO READ THIS ALSO READ * Standalone FinTechs won't exist; licensing, collaboration with banks is the way ahead: Experts * 2023 may bring good tidings to Indian banks on a booming economy, credit growth * UPI fund block to ease broker workload but raises question over payment failure: Nitin Kamath of Zerodha * UPI fund block facility may revolutionise secondary market investments, boost e-commerce SUBSCRIBE TO OUR NEWSLETTER 50000+ Industry Leaders read it everyday I have read Privacy Policy and Terms & Conditions and agree to receive newsletters and other communications on this email ID. BANKING * 3 hrs ago BANKS ON ALERT AS 2 KEY PULSES EXPORTING NATIONS ON FATF LIST * 3 hrs ago BORROWERS DON'T HAVE TO BE TOLD INDIVIDUALLY ABOUT CHANGE IN RATES: CONSUMER COURT * 1 day ago IS THIS THE RIGHT TIME TO INVEST IN FLOATING RATE FDS TO BENEFIT FROM RISING INTEREST RATES? * 1 day ago BANK OF BARODA HIKES MCLR BY UP TO 30 BPS; HOME LOAN, OTHER LOAN EMIS TO GO UP View More EDITOR'S PICK * 3 hrs ago HOW CBDC IS DIFFERENT FROM UPI: RBI GOVERNOR’S VERSION EXPLAINED * 3 hrs ago EMBEDDED FINANCE SPIKE TO SUPER APPS: SEVEN TRENDS THAT WILL PROPEL FINTECH FIRMS IN 2023 * 3 hrs ago VERONICA SCOTTI OF SWISS-RE HIGHLIGHTS ROLE OF INSURANCE IN MANAGING PUBLIC FINANCES IN INDIA * 1 day ago THE ROLE OF FINANCIAL INSTITUTIONS IN ADDRESSING CLIMATE CHANGE * 22 hrs ago HOW CAN FINTECH HELP MAKE THE MSME SECTOR GREEN? BFSI VIDEOS * SFBS AND NBFCS DEEPENING THE FINANCIAL INCLUSION AGENDA: FINCARE SFB CEO A quick chat with Rajeev Yadav, MD & CEO, Fincare Small Finance Bank at the 3rd Edition of the two day ETBFSI Converge 2022. * 3 days ago BANKS' LEADERS DISCUSSION: THRIVING IN THE WORLD OF DIGITAL * 5 days ago KEY FOCUS ON CUSTOMER CENTRIC CUSTOMIZATION OF SERVICES: IPPB CHIEF VENKATRAMU * 6 days ago ALLIANCES BETWEEN BANKS AND FINTECH WILL BOLSTER EFFICIENCY: CITY UNION BANK CEO View More EXCLUSIVE BANKS TURN CAUTIOUS IN CORPORATE LENDING AS CREDIT GROWTH HITS RECORD HIGH Wary of higher NPAs like the ones ratcheted up in the last decade, banks are avoiding risky proposals from corporates with ratings of BB and below. * ETBFSI Click Here to Read This Story * * * * * * * * The yields have also increased by 255 basis points (bps) since April 2022 and was at 6.92 per cent in October 2022, he says in the report.With credit demand at record highs, banks have turned cautious and are raising parameters for lending. Banks are avoiding risky proposals and turning down loan requests from corporates with lower credit rating. However, with interest rates rising and loans becoming more expensive, banks are worrying about the repayment capacity. “The only thing when we do underwriting is we should see that it should suit our appetite. Appetite is not in terms of how much NPA we can have; it should rather be how much lower NPA we should have,” said Dinesh Khara, Chairman, SBI, while addressing the media on November 5, according to a report. “We should identify the risk and have the mitigations in place. And as long as we’re in a position to do that, we will not like to touch the credit which is not in line with our risk appetite,” he added. SBI is now turning down loan requests from companies with ratings of BB and below, said the report. The gross and net NPAs at 3.52 per cent and 0.8 per cent, respectively in Q2 FY23, which is the best level since fiscal 2002. Industry credit growth The credit outstanding of the industry segment registered a robust growth of 12.6 per cent y-o-y in September 2022 from 1.7 per cent in the year-ago period. The growth was due to robust growth in the MSMEs (29.6%) which were driven by ECLGS, inflation-induced working capital requirements, ease of doing business supported by increasing digitisation in the banking system for faster loan turnarounds and demand for new capex. The demand for the new capex is taking place with rising demand from infrastructure (road, telecom, renewables), auto and consumer durable companies. The large enterprise segment (share of 75.7 per cent within the industry) reported a growth of 7.9% from a drop of 2.1 per cent over a year ago. All the industry sub-segments witnessed growth in credit in September 2022. Petroleum, coal products and nuclear fuels witnessed the highest growth of 75.9 per cent y-o-y vs 20.3 per cent in the year-ago period due to higher working capital requirements driven by high crude oil prices and currency depreciation, followed by the chemical and chemical products which rose 22.5 per cent y-o-y versus marginal growth of 1.9 per cent in the year-ago period. The infrastructure subindustry (share of 37.5% within the industry) registered a growth of 10.9 per cent from 3.4 per cent in the year-ago period. Within infrastructure, telecommunication and other infrastructure grew at a robust rate of 16.3 per cent and 19.0 per cent y-oy. Within the infrastructure, roads and airports reported growth of 13.4 per cent y-o-y each in the month. 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