Banking Reforms Needed as Capital Flows to Green Hydrogen and Biotech, SBI Chief States

At the 13th SBI Banking and Economics Conclave, Chairman C.S. Setty warned that the inflow of overseas funds into green hydrogen, biotechnology, robotics and other high‑tech arenas will test the resilience of India’s financial system. He argued that banks must shift from a transaction‑focused mindset to a partnership model that supports research, development and large‑scale production.

Setty pointed out that financing green hydrogen plants or biotech pipelines requires patient capital, risk‑sharing mechanisms and a deep understanding of regulatory landscapes. He called for the creation of sector‑specific credit lines, insurance products and subsidy‑linked loans that can lower the cost of capital for innovators.

According to the SBI chief, the overarching objective is to turn financial strength into an enabler of industrial leadership. By aligning credit policies with the needs of sunrise sectors, India can convert its demographic dividend into a sustainable, technology‑driven growth engine.