As per a recent report, there are no Indian PSU banks<\/strong> amongst the top 10 lenders to India\u2019s renewable energy sector<\/em> in 2018. The biggest lender was L&T Finance,<\/strong> which is a non-banking finance institution owned by the infra conglomerate L&T,\u00a0that lent more than a billion dollars accounting for almost 40% of the total lending to the green sector. There were other private banks such as Yes Bank <\/strong>and<\/em> Indus Ind Bank<\/strong><\/em> besides some major multilateral institutions such as the World Bank <\/strong>and ADB<\/strong>. Other major Indian private banks such as HDFC Bank, ICICI Bank, and Axis<\/em>\u00a0Bank<\/em> were also surprisingly missing from the list as RE projects are generally thought to be more risk-free\u00a0when compared to fossil fuel power projects which are at the risk of becoming stranded due to the rapid decrease in RE power costs. Also, read about banks that provide loans for rooftop solar<\/em><\/a> projects in India.<\/p>\n India\u2019s RE sector will have to find new sources of lending as the demand grows with some estimating that India would need around $450 billion<\/em> <\/strong>over the next decade to achieve its ambitious green energy capacity targets. This would mean a quantum jump in the $2.64 billion lendings to RE from last year and would require all big banks and lending institutions to get into the sector. Also, the loans which have been made need to be recycled as they cannot get stuck into the existing projects. Pension funds and other sources of long term patient capital will need to buy the loans from the banks once they start to produce cash flows for a number of years reducing their risk profile. Securitization and INVITS are other sources through which more capital can flow through the RE sector leading to increased lending for the green sector in India<\/strong>.<\/p>\n Also, read our list of top Ten Banks in India<\/a><\/strong><\/em><\/p>\n
![\"GWI\"](\"http:\/\/www.greenworldinvestor.com\/wp-content\/uploads\/2019\/08\/GWI-300x300.png\")
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