Home > State Bank of India staff reject its proposed loan to Adani coal

State Bank of India staff reject its proposed loan to Adani coal

17 December 2020

Over 90% of respondents to Market Forces’ State Bank of India (SBI) staff survey would oppose the public bank’s lending of A$1 billion to Adani’s Australian mega-mine. This puts SBI’s management on a collision course with its employees if it ends up supporting Adani’s climate-wrecking Carmichael thermal coal mine with the loan, after not one single private bank in the entire world was willing to fund the project.

The survey, which is being run via LinkedIn, also found that 97% of respondents wanted to see India replace coal-fired power with renewable energy like solar.

“Renewable Energy is the way to go, why are we funding a regressive and more importantly environment harming project? Fund Solar farms in India instead.”
– Anonymous SBI staff member

Another common theme from SBI staff responses were concerns that the bank’s decision was being influenced by the Indian Government, with 85% agreeing political pressure was likely a factor. These responses come amid arguably the biggest strikes in human history occuring on the streets of India, protesting Prime Minister Modi’s new farm and industrial relations laws seen to favour large corporations like the Adani Group.

“Public sector banks are not free from political influence. This Loan for Adani is such an example”
– Anonymous SBI staff member

“I believe SBI should not fund this coal project. The senior management in SBI needs to take an independent decision, without getting influenced by political connotations.”
– Anonymous SBI staff member

SBI staff also voiced the view that SBI’s money would be better spent powering India’s COVID-19 economic recovery, with 91% agreeing that taxpayer funds are better placed supporting industries and jobs in India.

“Why not finance the projects in India so that employment will generate and the country will come up.”
– Anonymous SBI staff member

SBI staff join a growing list of stakeholders that are speaking out against SBI’s proposed A$1billion loan to Adani’s controversial coal project. Since reports of the loan surfaced, major investors including Amundi and AXA have threatened to, or have, divested their bond holdings in SBI, and thousands of people across the globe have rallied outside SBI offices and Indian consulates.

The next big player that needs to speak out against SBI’s consideration of a loan to Adani is UK bank HSBC, which has recently arranged millions of dollars of green bonds for SBI and provided it with loans.

Contact HSBC now and let it know that it is risking its reputation if it does not join the call for SBI to rule out funding Adani’s coal mine.

Take action

Call on HSBC to state publicly that it won’t provide any further financial services or capital to SBI if it funds Adani’s toxic mine.

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Your message to HSBC (your name will automatically be added at the bottom)
Dear HSBC, I am writing to express my concern about the actions of your client, the State Bank of India (SBI), which is considering a AUD $1 billion loan to the Adani Carmichael mine in Australia. I am asking you to follow the lead of Europe’s biggest asset owner, Amundi, by calling on SBI to refuse to fund the Adani mine and to commit to not provide any further financial services or capital to SBI if the loan goes ahead. You are proud of your green bonds but your association with SBI, if it funds Carmichael, will be a risk to your reputation and the credibility of your work in the green bonds market. HSBC has consistently said it will uphold the goals of the Paris Agreement to limit global warming to 1.5ºC and that it is committed to becoming a ‘net zero’ bank. This means that HSBC cannot be silent when one of its clients moves to fund one of the most climate-destructive new thermal coal projects in the world. You have advised SBI in the past on bond holdings – you must advise them not to fund this project. Analysts have found Adani’s coal project will struggle to ever make a profit [1], with any loan to the Carmichael mine carrying significant financial risks. The lack of economic case for the loan combined with the scale of the destruction the project is causing, means that SBI’s global reputation, and that of its business partners, is at grave risk if the loan goes ahead. We are well past the point where any new coal mines can be built in order to have a chance of limiting global warming to 1.5ºC. HSBC’s own policy recognises this. Adani's Carmichael coal project would turbo-charge runaway global warming and destroy our chances at a safe and livable climate into the future. I urge HSBC to follow Amundi’s lead and publicly call on SBI to rule out funding the Carmichael mine. And if it doesn’t, I ask HSBC to commit to ceasing its provision of financial services and capital to SBI. Sincerely,
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Hey @HSBC, your reputation is on the line. Call on your client @TheOfficialSBI not to fund the Adani mine #StopAdani https://www.bloomberg.com/opinion/articles/2020-05-27/australia-s-carmichael-mine-may-never-make-a-profit
Your tweet
.@HSBC knows no new coal mines can be built if the world is to meet climate goals, but their client @TheOfficialSBI is considering a $1bn loan to Adani’s Carmichael mega-mine. Speak up, HSBC! Tell SBI to reject the loan! #StopAdani https://www.responsible-investor.com/articles/an-open-letter-to-hsbc-you-owe-it-to-green-bond-investors-to-engage-with-the-state-bank-of-india-over-carmichael
Your tweet
.@HSBC says it cares about climate change. If that’s true then it must speak up when it’s client @TheOfficialSBI is lining up a $1bn loan for the climate-wrecking Adani Carmichael mine. HSBC, time to speak out to #StopAdani https://www.bloomberg.com/opinion/articles/2020-05-27/australia-s-carmichael-mine-may-never-make-a-profit
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