SBI Launches CHAKRA for Renewable Energy Financing
The State Bank of India (SBI), the largest lender in the country, has recently launched CHAKRA, a Centre of Excellence (CoE) dedicated to financing eight promising sunrise sectors. These sectors include renewable energy, electric mobility, and advanced cell chemistry, among others. With an ambitious goal of mobilizing Rs 100 lakh crore in investments over the next five years, CHAKRA represents a significant step towards enhancing India’s economic landscape.
According to C S Setty, chairman of SBI, India’s future growth will hinge on innovation, sustainability, and advanced manufacturing. By establishing CHAKRA, SBI aims to bolster its institutional capabilities, enabling the bank to understand these emerging sectors better and design specialized financing solutions that can effectively contribute to the nation's developmental goals.
The bank intends to facilitate responsible capital flows into these capital-intensive sectors while enhancing its risk assessment capabilities. This strategic approach will help SBI to develop innovative financing structures that align with the evolving business models and policy frameworks in place.
It is noteworthy that many industries within these sectors are already investing their own equity. As these sectors scale up, they will require substantial debt capital. SBI aims to meet this need by introducing both domestic and international debt capital to these industries.
During the launch event, M Nagaraju, Secretary of the Department of Financial Services, emphasized the importance of state-run lenders focusing on multiple sunrise sectors rather than limiting themselves to just one. This diversification approach would help mitigate risks and enhance overall growth.
CHAKRA will also foster structured engagement with various entities, including development finance institutions, multilateral agencies, banks, non-banking financial companies (NBFCs), and industry bodies. SBI has already signed memorandums of understanding (MoUs) with around 21 financing institutions, which will facilitate collaboration and capacity building.
Notably, Japanese banks such as MUFG and Sumitomo Mitsui Banking Corporation are among the key partners that will contribute foreign capital and expertise to the initiative. Through CHAKRA, SBI aims to strengthen its capabilities, support innovation-driven enterprises, and enhance the capital flow to sectors that will drive India’s sustainable and technology-led future.
This initiative builds upon the bank’s earlier Centre of Excellence for Micro, Small, and Medium Enterprises (MSMEs) at the State Bank Academy, marking a progressive step in SBI’s commitment to fostering economic growth and innovation in India.
