**Title:** Standard Chartered Bank Pursues Green Lending Partnerships in India
**Meta Description:** Standard Chartered Bank seeks partners for green lending to SMEs in India, following a successful pilot in Singapore.
**URL Slug:** standard-chartered-green-lending-india
**Headline:** Standard Chartered Bank Explores Green Lending Opportunities for SMEs in India
Standard Chartered Bank is actively seeking partners to develop green lending initiatives aimed at small and medium enterprises (SMEs) in India. This move follows the bank’s successful pilot project in Singapore, as revealed by Xie Wen, the global head of SME banking at the bank. In an interview, Wen highlighted that the bank already offers green deposits and structured products and is considering the introduction of green financing options.
To effectively implement these green financing products, the bank is looking for partners who can assist in monitoring the utilization of these loans and assessing their carbon footprint. “For ESG, there are several areas to consider, and tracking the purpose of each loan is crucial,” Wen explained. “In India, we are exploring potential data providers to facilitate this tracking.”
Wen, who has been with Standard Chartered Bank since 1997, has held various leadership roles in risk management and business development across different markets. Before her current position, she served as the country chief risk officer for Singapore and China, as well as the head of commercial banking in China.
She emphasized the importance of tracking carbon footprints for transition financing, noting that while data is readily available for large corporations, it remains scarce for smaller businesses. Green lending encompasses financial products that promote environmentally friendly projects, while transition finance refers to services that help borrowers align their operations with international climate change objectives, as defined by the United Nations.
The Organisation for Economic Co-operation and Development (OECD) has underscored the vital role of both public and private financial institutions in facilitating the green transition for SMEs.
As of September 2024, Standard Chartered Bank boasts total green assets of $17.39 billion globally, focusing on themes such as clean transportation, energy efficiency, green buildings, and renewable energy. The bank is also committed to expanding its SME business in India. Following the recent divestment of its personal loan business to Kotak Mahindra Bank, the bank aims to intensify its focus on affluent banking, SME loans, and wealth management. Currently, Standard Chartered serves approximately 27,000 SME customers in India.
Wen noted that the bank operates SME businesses in 18 markets, with a comprehensive suite of services available in eight of them. India ranks among the top three markets for small businesses, alongside Hong Kong and Singapore. “Different markets have unique strengths and focuses, influenced by their specific conditions. However, in terms of asset and financing growth, India is a key player,” she stated.
In conclusion, Standard Chartered Bank’s initiative to explore green lending for SMEs in India represents a significant step towards promoting sustainable business practices and addressing climate change challenges. The bank’s commitment to tracking the impact of these loans will be essential in ensuring their effectiveness and alignment with environmental goals.
**FAQ Section:**
**Q: What is green lending?**
A: Green lending refers to financial products and services that support environmentally friendly projects, helping businesses align with sustainability goals.