India’s top banks disclose climate data but ignore lending risks as floods and heat worsen

Banks share numbers, yet still approve risky lending

India’s biggest banks are publishing increasing climate disclosures, but the data is not being used to steer lending decisions. As physical risks like flooding and extreme heat intensify, they threaten loan portfolios. Only a small number conduct climate stress tests or reduce coal exposure. The RBI supplies information but has not made disclosures mandatory, raising fears of financial instability and stranded assets.