Augmenting Green Financing Portfolio
Give us insights into Bank of Baroda's approach to sustainability financing. How do these initiatives align with the bank's overall sustainability goals?
Bank of Baroda recognises the importance of climate change as a global systemic risk and is financing renewable energy and other sustainable projects as India transitions to a low-carbon economy. The bank is also in the process of developing a sustainability framework that will help us in augmenting our green financing portfolio by lending to environment-friendly sectors/projects as well as aligning our business and operations with the principles of Environmental, Social and Governance (ESG).
What are the objectives behind BoB’s Earth Green Term Deposit Scheme?
We launched the BoB Earth Green Term Deposit Scheme with the aim to raise deposits that will be used to finance eligible green projects/sectors such as renewable energy, clean transportation, sustainable water and waste management, energy efficiency, climate change adaptation, pollution prevention and control, green buildings, biodiversity conservation, etc.
To cater to the requirements of a wider set of environmentally-conscious customers, we have introduced a range of tenors starting from 1 year to 2,201 days, offering interest rates up to 7.15 per cent p.a. The BoB Earth Green Term Deposit Scheme offers depositors the opportunity to contribute to a greener future while also giving them stable and secure returns.
Also, do explain the thought behind the numerous 'green initiatives' under the BoB Earth banner.
On Bank of Baroda’s 116th foundation day last year, the bank launched a number of green initiatives under the name of “bob Earth”, with the aim to promote sustainable practices in banking through the implementation of energy-efficient infrastructure and adoption of digital initiatives.
The bank has significantly digitised customer processes, introduced video KYC, customer acquisition through tablet banking etc, which not only has a positive impact on the environment but also improves the overall customer experience. Another initiative was the introduction of the paperless office at the bank. All internal approvals are routed through this system, thereby reducing consumption of paper substantially.
Further, 171 Bank of Baroda branches operate on solar power today. We also undertake stringent segregation of dry and wet waste, with wet waste being used to produce biogas.
Could you highlight any significant recent initiatives undertaken by BoB to enhance its digital capabilities and improve customer experience?
We have introduced a number of digital initiatives like the bank’s digital lending platform, a one-stop destination for loans in retail, MSME and agriculture. We were the first PSU to launch UPI ATMs, through which customers can withdraw cash using any UPI-enabled mobile app without having to use their debit card. And there are several more.
As Told to Ashish Sinha
