He noted that customers are actively opting for green deposit options as environmental consciousness deepens.
“First of all, there is a lot of public awareness and we find especially the youth more conscious about social causes and green deposits. So, we have just seen… somehow we went to our app and went to our website and we just promoted this concept of green deposits and we have four choices. Customers are choosing green deposits. So, we are actually quite happy to note there is a movement for green deposits.”
The comments came during a discussion with ET Now, where the conversation focused on the broader push by regulators and the government to accelerate green financing across the financial system.
On the importance of sustainable lending, Vaidyanathan emphasised that green initiatives are now a core area of focus for the bank, particularly through electric vehicle financing.
“It is very important. See, what IDFC is doing is that we do two-wheeler financing in a big way. So, we have done 400,000, that is four lakh electric vehicle financing and it is profitable also because the default of electric vehicle, the two-wheeler finance is even lesser than the internal combustion engine. So, we are actually impressed with it actually.”
When asked about the bank’s medium-term direction, he indicated that the institution continues to provide broad guidance rather than rigid targets.“We give a direction.”
On whether the bank has set specific targets for green financing or deposits, he explained that while no formal numbers have been disclosed, the growth trajectory is encouraging across segments.
“I know you are getting there, but the thing is that we have not put out any specific numbers for green financing as such but you see, there are actually the three areas. One is the corporate sector which is renewals. Second is the retail sector which is products like the one we talked about and deposits. So, on all of these things we are finding green as a concept is growing by about 20% to 25% a year. So, you can project it as a future.”
The bank, which has increasingly positioned itself as retail-focused, also continues to see value in maintaining a balanced corporate presence, according to Vaidyanathan.
“In today’s discussion you should focus on green which is the subject of the discussion, but the short point is that we believe that corporate bank is also important segment for the bank. It gives you trade. It gives you FX. It gives you salary accounts. We like it.”
On the policy environment, he said regulatory and government support for sustainable finance is already substantial, pointing to initiatives that encourage blended finance and greater focus on climate-linked funding.
“Already quite a lot. If you see the focus from the regulator on green, you will be surprised, so focus is there, interest is there. You could see from the government’s point of view there is this support for the blended finance. So, it is coming. According to me, it is coming quite well.”
As India accelerates its transition toward cleaner energy and sustainable growth, lenders appear to be aligning strategies with both policy direction and shifting customer preferences—suggesting that green finance could become an increasingly significant pillar of banking in the years ahead