DBS is bolstering support for customers to adopt sustainable business practices, says Dalal
In line with its focus on responsible banking, Singapore-origin DBS Bank India has launched Green Deposit Programme for corporate clients providing a simple way for companies to support environmentally-friendly projects or avenues.
DBS Bank is one of the few banks globally to integrate Sustainable Development Goals by offering lending and trade credit solutions to sustainable and environmentally-friendly green sectors and now offering a Green Deposit product.
Under the Bank’s sustainability programme, Green Deposits will fund green industries and initiatives such as green building sustainable water initiatives that include wastewater management, renewable energy and clean transportation.
The Green Deposits proposition combines all the benefits of a regular fixed deposit with a commitment from DBS to support green and sustainable loans disbursed by the bank.
Green Deposits serve as an ideal opportunity for corporates looking to include sustainability agenda into their treasury activities or those having limited options for investing in environmentally-beneficial projects.
“Through sustainable financing, banks play an important role in accelerating the transition to an ESG friendly future,” said Divyesh Dalal, Managing Director and Head – Global Transaction Services, DBS Bank India.
“DBS is bolstering support for customers to adopt sustainable business practices, enabling them to contribute towards Sustainable Development Goals. Our Green Deposits programme aims to finance green industries and initiatives for renewable energy, managing wastewater and clean transport,” he said on 15 Mar 2022 of the Green Deposit Programme.
The deposits can provide a threefold benefit:
- Demonstrate customer’s commitment towards environmental sustainability;
- Customers can invest surplus cash in deposits supporting sustainable projects with positive environmental impact;
- Customers can receive stable returns on investment without compromising the security of the deposit placement.
A pioneer in understanding international green finance benchmarks, DBS Bank has established its capacity and expertise in providing Green Loans. In 2020, DBS had partnered with CapitaLand Group to place its first green deposit for one of their group entities.
The total net worth of outstanding green loans disbursed by DBS Bank in India is worth Rs.1,546 crores.
To drive further progress in Asia’s sustainable financing landscape, DBS advocates scaling up transition finance and supporting clients in adopting incremental and instrumental solutions – all of which are necessary to broaden and deepen the market.
To scale up India’s cotton industry, the Bank partnered with fashion retailer Inditex, one of the world’s largest retailers, to arrange financing for the Farmer Producer Organisations (FPOs) to procure organic cotton from the farmers in a timely fashion.
The World Economic Forum reported that an estimated US$2.5 billion in additional annual investment is necessary to fully achieve the United Nations’ Sustainable Development Goals in developing countries.
India is increasingly working towards achieving an inclusive, sustainable economy. India’s performance on the NITI Aayog SDG India Index has improved from an overall score of 60 in 2019-20 to 66 in 2020-21.
DBS is a leading financial services group in Asia with a presence in 18 markets.
DBS Bank has been present in India for 28 years, starting with first office in Mumbai in 1994. DBS Bank India Limited is the first among the large foreign banks in India to start operating as a wholly-owned, locally incorporated subsidiary of a leading global bank. fiinews.com
