India’s Top 500 Value Creators 2023
India’s Top 500 Value Creators 2023 | 5 [ EXPERT’S VIEW ] other domain. The use of technology is quite deep and widespread in SBI now. In respect of customer offering, our app SBI YONO offers hyper customization of services. PAPL which is pre-approved loan where customer is targeted using AI algorithms. SBI YONO also has spent analyser, an onl ine market space and covers entire range of services in agriculture, personal banking, and corporate banking. It is fully integrated with UPI platform and is also beingmarketed in the UK, Nepal where we have business operations. We are continuously improving our digital offering using agile model where usage data feeds into improving services. How has SBI enhanced its collaboration with businesses to foster mutual growth, innovation, and sustainable value creation? SBI collaboration can be grouped under two heads – one is our co- lending strategy with NBFCs and other is our technology collaboration with fintechs. In respect of first, in FY23 SBI had signed MoUs with 18 NBFCs/ HFCs under its co-lending model to enhance its reach to the unserved and underserved populace. Under this model, our Bank has sanctioned loans tomore than 1,52,000 borrowers amounting to INR 865 Crore, of which more than 1,49,000 accounts were sanctioned in completely digitised mode (loans up to INR 1 Lakh). In respect of technology collaborations, SBI is actively looking to partner with agri-techs and start-ups to cater to the financial needs across the agriculture value chain. How has SBI integrated ESG principles into its business strategy, and what role does SBI plays in helping India achieve its Sustainable Development Goals (SDGs)? SBI deploys a sector -agnos t i c , entry-level barrier assessment of environmental and social issues to loans amounting to between INR 5 crore and INR 50 crore, which is crucial to its decision-making process. For loans exceeding INR 50 crore, the borrower is evaluated on a number of ESG issues and allotted a score, to ensure responsible investment. Under the revised framework, SBI rate borrowers on ESG criteria, which lays emphasis on mandatory rating of ESG criteria for the specified borrowers. This includes existing borrowers and prospective borrowers in India, with an exposure of over INR 100 crores (for listed borrowers) and over INR 500 crores (for unlisted borrowers) at the time of CRA rating. Twice a year, SBI also puts its credit portfolio through stress tests, the scenarios in which are regularly updated in line with RBI guidelines, industry best practices and changes in macroeconomic variables. This, combined with the constant endeavour to strengthen its ESG integration, is helping the Bank manage its risks better and secure its value creation. SBI is supporting projects related to renewable energy and clean mobility. The Bank has also directed its efforts towards funding affordable housing and SHG finance and created custom products and services to uplift the weaker sections of society. The Bank has issuedGreen Bonds and is aligning its products with the SDGs. It is also actively engaging with its peers in the BFSI sector to leverage their collective strengths and reach for the greater good. Further, SBI has already put in place Green Bond Framework to draw a road map to issue Green Bonds and to use the proceeds for green projects falling under the ambit of the Green Bond framework of the Bank. This framework is constructed in accordance with the Climate Bonds Standard Version 2.1 developed by Climate Bonds Initiative (CBI). The framework serves in determining eligibility criteria for green projects and provide the requisite transparency and disclosures for investors. The Bank’s exposure to identified climate- related risks, the associated exposure of its major portfolios and progress in managing them from an adaptation andmitigation perspective is routinely presented to SBI’s senior management and the Board. SBI has set the vision to create Pathway to Net Zero (Scope 1,2 and 3) for the bank by 2055. To demonstrate c omm i t me n t t o s u s t a i n a b l e development and reflect upon the SDG centric approach, Bank has been annually mapping its products to the goals. For FY23, the Bank has mapped additional five products showcasing its contribution to various goals by promoting economic growth through poverty al leviation, employment generation, gender equal ity and climate action. With this, the Bank has a rich suite of 21 products acting as value enablers and supporting 14 out of the 17 goals. What are SBI’s top priorities for creating value for its stakeholders in the next five years? In the coming years SBI will focus on the following key priorities to create stakeholder value creations: Technology upgradation Enhancing Customer experience Climate riskassessment, reduction and greening of balance sheet Alter strategic asset allocation to sun rise sectors such renewables. Increase market reach with co- lending business. Cost reduction Employee upskilling Dun & Bradstreet
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