Mumbai – March 2, 2025
As India’s largest commercial bank takes strides toward a sustainable future, the State Bank of India (SBI) has set an ambitious target to achieve Net Zero emissions by 2055—coinciding with its centenary year. The announcement, made by Chairman Challa Sreenivasulu Setty last Sunday, February 23, during the flag-off of the ‘SBI Green Marathon Season 5’ in Mumbai, marks a defining moment for the PSU banking giant. Standing at the marathon’s starting line with over 10,000 runners—aptly dubbed ‘Green India ambassadors’—Setty laid out a vision that blends legacy with responsibility, signaling SBI’s intent to lead not just in finance but in climate action too.
As India’s largest commercial bank takes strides toward a sustainable future, the State Bank of India (SBI) has set an ambitious target to achieve Net Zero emissions by 2055—coinciding with its centenary year. The announcement, made by Chairman Challa Sreenivasulu Setty last Sunday, February 23, during the flag-off of the ‘SBI Green Marathon Season 5’ in Mumbai, marks a defining moment for the PSU banking giant. Standing at the marathon’s starting line with over 10,000 runners—aptly dubbed ‘Green India ambassadors’—Setty laid out a vision that blends legacy with responsibility, signaling SBI’s intent to lead not just in finance but in climate action too.
For those of us who’ve followed SBI’s journey—from its roots as the Imperial Bank of India in 1921 to its modern avatar as a financial powerhouse—this isn’t just another corporate pledge. It’s a tectonic shift for a bank that commands a deposit base of ₹47.62 lakh crore, a loan portfolio exceeding ₹35.84 lakh crore (as of December 2023), and a network of over 22,400 branches and 65,000 ATMs. With a market share of 26.5% in home loans and 19.5% in auto loans, SBI’s footprint is massive—making its Net Zero goal a potential game-changer for India’s PSU ecosystem. “We’re targeting Net Zero by 2055, our centenary year,” Setty declared, tying the bank’s environmental ambitions to a milestone that celebrates a century of service since its formal rebranding in 1955.
The announcement couldn’t have been timed better. Today, March 2, I’m in Bhopal covering the next leg of the SBI Green Marathon—Season 5’s journey across 12 cities, from Visakhapatnam to Delhi (set to conclude March 9). Launched in 2018, this initiative has morphed into a powerful symbol of SBI’s commitment to India’s ‘Mission LiFE’ (Lifestyle for Environment), a PM Modi-led call for sustainable living. Here in Bhopal, thousands of runners pounded the pavement in 5km, 10km, and 21km races, with cash prizes—₹15,000, ₹10,000, and ₹7,000 for the 21km toppers—adding a thrill to the green cause. It’s grassroots engagement like this that gives SBI’s lofty 2055 target a tangible pulse.
But what does Net Zero mean for a banking behemoth? In SBI’s case, it’s about slashing emissions across Scope 1 (direct), Scope 2 (indirect from energy use), and Scope 3 (value chain) operations—a tall order for an institution with 81,000+ business correspondent outlets and 258,000 employees. The bank’s already on the move: its 26 MW solar installations and 15 MW windmills have cut its carbon footprint, while 18 key buildings, including the iconic ‘State Bank Bhawan’ in Mumbai, now run entirely on green power, offsetting 1.74 crore units of electricity annually. Add to that a $250 million green bond raise in FY24 and a $770 million World Bank credit line for solar rooftops, and you’ve got a PSU flexing serious green muscle.
Setty’s vision isn’t just about internal ops—it’s about influence. SBI aims to steer 7.5% to 10% of its domestic loan portfolio toward green advances by 2030, a nod to the RBI’s push for climate-conscious banking and SEBI’s sustainability reporting mandates. With a home loan book of ₹6.93 lakh crore—housing dreams for over 30 lakh families—imagine the ripple effect if even a fraction goes green. From financing solar plants to backing EV infrastructure, SBI’s betting big on a low-carbon economy, even as India’s broader Net Zero target looms at 2070.
Yet, the road to 2055 won’t be smooth. PSUs like NTPC and Coal India have faced their own green transition hiccups—coal still powers 70% of India’s grid, and SBI’s financed plenty of it. Scope 3 emissions, tied to its vast lending and investment portfolio, are a beast to tame. Critics might scoff at a 30-year timeline when global peers like HSBC eye 2050, but for a bank embedded in India’s emerging economy—where emissions are still rising—2055 is a pragmatic stretch. Setty’s banking on incremental wins: more renewable assets, tighter ESG frameworks, and a climate risk committee formed last year to keep the ship on course.
As I watch Bhopal’s runners cross the finish line, it’s hard not to see parallels. SBI’s Net Zero race is a marathon, not a sprint—2055 is three decades out, but the groundwork’s happening now. From Jaipur (February 16) to Delhi next week, the Green Marathon’s drumming up awareness, mirroring SBI’s broader push to nudge customers, employees, and policymakers toward sustainability. Will it hit that centenary goal? At 1:40 PM IST today, the finish line’s distant, but with 125 million internet banking users and 133 million mobile banking clients in its orbit, SBI’s got the heft to pull it off—and maybe even drag India’s PSU pack along for the ride.