An Assessment of Indian Banks’ Exposure to Sectors in Transition

This paper examines the exposure of India's banking sector and non-bank financial companies (NBFCs) to transition risks arising from the shift to a low-carbon economy. It analyses lending and investment exposures to high-emitting sectors, identifies concentrations of risk across financial institutions and corporates, and assesses loan tenors to understand the financial system's capacity to adapt. The findings provide evidence to inform climate-related financial risk management, regulatory policy, and strategies for supporting an orderly transition to a net-zero economy.