Looking forward, India is well-positioned to lead the charge in Asia’s transition to a sustainable future.
In India, DBIL provides collateral-free loans of up to SGD 333,000 to micro and small enterprises (MSEs) through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, offering guarantee coverage to enhance credit accessibility for growing businesses.
By Rusen Kumar
NEW DELHI (India CSR): As part of its commitment to fostering inclusive growth, DBS, one of Asia’s leading financial institutions, Bank has been actively involved in promoting financial inclusion in India. The bank’s Priority Sector Lending program has disbursed over SGD 3.4 billion (approximately Rs. 20,400 Crores) in loans, focusing on low-income communities and underserved areas. This financing supports India’s ongoing efforts to provide affordable access to housing, healthcare, and education, especially in rural and semi-urban areas.
The recent DBS Sustainability Report 2024, titled “Partnering for Asia’s Transition,” highlights how the bank’s financing supports India’s ongoing efforts to provide affordable access to housing, healthcare, and education, especially in rural and semi-urban areas.
Financial inclusion is critical to ensuring that the benefits of sustainability reach every corner of society, particularly marginalized communities. DBS’s efforts in India align with the country’s goal of reducing inequality and ensuring that the transition to a green economy benefits all citizens, regardless of their socio-economic status.
By providing easy access to credit and other financial products, DBS is empowering individuals and small businesses to participate in the country’s economic growth while simultaneously driving social and environmental responsibility, the report revealed.
In the DBS Sustainability Report 2024, Piyush Gupta, Chief Executive Officer of DBS Group Holdings, emphasized the bank’s commitment to sustainable growth and its pivotal role in the region. He stated, “As an Asia-centric bank, we have an important role to play in supporting the balancing of social, economic, and environmental priorities in the region, providing the essential financing required to drive sustainable development.”
During a media briefing, Shilpa Gulrajani, Head of Sustainable Finance, Institutional Banking Group, DBS said, “Amid a growing urgency for climate action, the need for climate adaptation and mitigation continues to accelerate. Businesses across Asia face increasing pressure to transition to low-carbon business models, yet many lack the necessary resources to implement meaningful change. Recognising this, DBS is deepening its commitment to transition finance, helping companies – particularly those in hard-to-abate sectors – access the capital and expertise required to transform their businesses.”
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Supporting Economic Growth and Livelihood through Priority Sector Lending in India
India’s priority sectors, critical for driving economic growth and social development, face unique challenges in accessing financial services. To bridge this gap, DBS Bank India Limited (DBIL) has actively increased lending to underserved sectors and borrower categories with limited access to formal credit over the past five years.
By December 2024, the Priority Sector Lending (PSL) portfolio reached SGD 3.4 billion, representing a 24% year-on-year growth, with a focus on:
- Agriculture: Lending to farmers, including women in rural India, for allied agricultural activities and for sanitation and health improvements.
- Micro and Small Businesses: Lending to micro, small, and medium-sized enterprises (MSMEs).
- Affordable Housing: Providing housing loans for the middle class and supporting affordable housing through Housing Finance Companies (HFC) portfolio securitisation.
In India, DBIL offers collateral-free loans of up to SGD 333,000 with guarantee coverage for micro and small enterprises (MSEs) under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme. This scheme promotes improved credit flow to the MSE sector and supports entrepreneurs during their growth phase.
Boosting Female Representation in India
The female representation at DBS Bank India has grown from 27% in 2021 to 31% in 2024, and the target is to achieve 35% female representation by 2026. A cornerstone of this strategy is the India DEI Council, which focuses on having a diverse slate of candidates, creating a psychologically safe culture, and building a resilient, diverse talent pipeline.
Green Energy Initiatives
Efforts to power office buildings and branches with green energy continue to grow. In 2024, the green energy portfolio in India was expanded, with five new sites added, bringing the total to seven locations powered by renewable energy.
Key Partnerships and Impact
Several impactful partnerships have furthered the sustainability and development goals in India:
- Urdhvam Environment Technology provides safe and sustainable water for drinking, domestic use, and irrigation, ensuring that households and villages can thrive for future generations. DBSF support enabled the expansion of access to clean and safe water, especially for vulnerable smallholder farmers.
- A partnership with Haqdarshak Empowerment Solutions focused on increasing accessibility to financial literacy and social welfare schemes for marginalized communities in rural and semi-rural areas.
- ReCircle empowers waste workers by creating an ethical, technology-driven supply chain, enhancing sustainability and worker dignity. DBSF support helped ReCircle support more waste pickers with access to livelihood opportunities.
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Innovative Financing and Advisory Services
In addition to direct financing, DBS is leveraging its expertise in sustainable advisory services to guide Indian businesses through their transition to a low-carbon future. The bank’s strategic partnerships with Indian companies, governmental bodies, and NGOs have facilitated the development of innovative financing models that cater to both large corporations and SMEs.
One of the significant challenges in India’s transition is supporting small and medium-sized enterprises (SMEs), which are crucial to the country’s economic development. To address this, DBS launched the ESG Ready Programme in Singapore, an initiative that will soon be extended to India. This program provides SMEs with access to financing solutions and expert advice, helping them integrate sustainability into their business strategies. The bank’s holistic approach includes access to carbon credits, sustainable supply chain solutions, and green technology, all of which are crucial for India’s SMEs to thrive in a green economy.
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India’s Role in Asia’s Sustainable Transition
As the world grapples with the accelerating impacts of climate change, India is emerging as a pivotal player in the global push towards sustainability. With a burgeoning population, growing energy demands, and an urgent need for climate action, India’s role in Asia’s transition to a low-carbon economy is more crucial than ever. The Sustainability Report also highlights how key financial institutions like DBS are supporting India’s sustainability journey through innovative financing, technology, and strategic partnerships aimed at creating a sustainable future.
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A Commitment to Net-Zero by 2050
DBS has consistently supported India’s sustainability goals by providing tailored financing solutions for renewable energy projects, energy-efficient technologies, and green mobility initiatives. India’s renewable energy sector, particularly solar and wind power, has witnessed significant growth, with investments from both domestic and international stakeholders. DBS’s sustainable financing efforts have bolstered India’s green energy capacity, helping to mitigate the challenges posed by a rapidly growing population and urbanization.
India’s commitment to transitioning to a net-zero economy by 2070 has sparked significant interest in its evolving environmental policies. The country is already on track to surpass a 50% clean energy share in total power generation by 2025. This milestone is part of India’s broader strategy to reduce its carbon footprint while ensuring that economic growth does not come at the cost of environmental degradation.
Piyush Gupta, Chief Executive Officer of DBS Group Holdings, said, “India, benefitting from strong efforts in recent years, is expected to surpass a clean energy share of 50% in the country’s total power generation in 2025. India also continues to make strides in other areas such as the electrification of mobility and battery storage.”
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Transition Finance: India’s Role in Green and Low-Carbon Economies
One of the standout features of the DBS report is the focus on transition finance—a key concept for supporting countries like India that are moving from high-emission to low-carbon economies. Transition finance targets sectors that are essential for India’s economy but are currently carbon-intensive, such as steel, transportation, and agriculture.
India’s rapid industrialization necessitates a comprehensive approach to transition finance. DBS has been at the forefront of providing financial solutions to help industries in India shift towards greener alternatives. For example, DBS has played a critical role in financing the decarbonization of industries through its Transition Finance Framework (TFF). This framework not only supports the development of green projects but also focuses on encouraging the transition of traditional sectors to more sustainable operations.
India’s steel and cement industries, which are among the largest contributors to the country’s emissions, have been identified as key areas for transition finance. By financing the development and adoption of cleaner technologies in these sectors, DBS is helping Indian companies reduce their carbon footprints while maintaining their competitive edge in the global market.
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Partnerships for Climate Resilience in India
While mitigation efforts are vital, India also faces significant challenges in adapting to the physical impacts of climate change. Extreme weather events, such as floods, droughts, and heatwaves, are becoming increasingly frequent and severe in many parts of the country. As a result, climate resilience has become a key focus of India’s environmental strategy.
In 2024, DBS strengthened its collaboration with Indian stakeholders to enhance climate resilience through blended finance initiatives, such as the Financing Asia’s Transition Partnership (FAST-P). This partnership, supported by the Singapore government, focuses on providing concessional funding to developing countries like India to build climate-resilient infrastructure and systems.
India’s vulnerability to climate impacts, particularly in rural areas, has prompted DBS to direct more funding towards projects that strengthen the country’s adaptive capacities. From building resilient infrastructure to enhancing agricultural practices that can withstand changing climatic conditions, DBS’s financing solutions are enabling India to tackle the dual challenges of mitigating climate change and building resilience against its effects.
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The Role of Technology and AI in India’s Sustainability Journey
India’s rapid adoption of digital technology plays a vital role in its transition to a sustainable future. In line with this trend, DBS is using its advanced digital capabilities, including artificial intelligence (AI) and data analytics, to support India’s green transformation. These technologies are being used to improve risk assessments, monitor environmental impacts, and streamline the management of sustainable finance.
The integration of AI into sustainability efforts is particularly relevant in India, where data-driven solutions can enhance the efficiency of energy use, optimize resource management, and reduce waste. DBS is working with Indian companies to harness the power of AI for sustainable development, ensuring that the country remains competitive in an increasingly green global economy.
(India CSR)
About Auhtor
Rusen Kumar is a seasoned journalist and the Managing Editor of India CSR, a leading platform for corporate social responsibility insights. With a focus on global sustainability challenges, he consistently writes on topics including Corporate Social Responsibility (CSR), Sustainable Development Goals (SDGs), Environmental, Social, and Governance (ESG) issues, and other emerging sustainability trends.
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