Indian Bank has introduced the 'IND Green Charge' scheme to finance electric vehicle charging infrastructure, aiming to deploy ₹100 crore by the end of FY27. The initiative offers loans of up to ₹10 crore to help expand the bank's MSME portfolio as demand for green energy solutions increases.
Indian Bank has launched a new financing scheme called 'IND Green Charge' to support the development of electric vehicle (EV) charging stations. The public sector lender aims to deploy ₹100 crore in loans for this sector by the end of the current financial year (FY27). This initiative is part of the bank's strategy to grow its MSME loan book while supporting the national shift toward sustainable energy.
Under this scheme, both individual entrepreneurs and business operators can apply for loans of up to ₹10 crore. The bank has set a maximum repayment period of eight years. The funding is available for various types of charging projects, including public charging stations, fleet charging facilities, and captive stations used by private entities. The bank aims to use this product to address the infrastructure gap in the EV market.
For investors, the bank's financial health is a central factor. As of March 2026, Indian Bank reported a gross non-performing asset (NPA) ratio of 1.98% and a net NPA ratio of 0.15%. These indicators suggest the bank has maintained stable asset quality, which provides the necessary financial flexibility to enter new lending segments like green infrastructure.
However, this new initiative carries specific business risks. Lending to relatively new infrastructure projects like EV charging stations involves uncertainty regarding long-term project viability. The success of these loans will depend heavily on the utilization rates of the charging stations. If the adoption of electric vehicles does not meet expectations, or if competition among charging service providers leads to lower profit margins for borrowers, there is a risk that they may struggle to repay their loans.
The bank has noted that it conducted stress testing on various charging models to evaluate credit risk. Investors should monitor future quarterly results to track the actual disbursement figures for this scheme. Additionally, updates from the management regarding the quality of these assets will be important to ensure the bank maintains its current asset quality levels as it scales up this new lending vertical.