City Union Bank MD and CEO N Kamakodi with IFC and CUB officials at the MoU signing with IFC | Photo credit: EASHWAR RAVI
Private sector bank City Union Bank has received a $50 million commitment from the International Finance Corporation (IFC), a member of the World Bank Group. The financing is intended to support SMEs in the transition to energy-efficient and cost-effective solutions.
Kamakodi N, Managing Director and Chief Executive Officer of CUB said the primary use of the funds will be for new onward lending and refinancing of solar related loans for MSMEs. “We have seen significant growth in solar lending over the last four to six quarters,” he said. Wind energy is another area where there is demand among SMEs. We have borrowed a total of around ₹500 crore for solar energy in the last four to five quarters, he said. “We are now moving towards green financing to support our country in achieving sustainable growth and low carbon emissions,” he added.
MSMEs play a crucial role in the Indian economy, contributing 30 percent of the country’s GDP. However, high energy costs pose a significant challenge to their competitiveness. Access to renewable and efficient energy provides a cost-effective alternative, allowing businesses to reduce costs, improve efficiency and support sustainable growth.
CUB said IFC’s investment will help advance the Bank’s commitment to supporting sustainable development.
Imad N. Fakhoury, IFC Regional Division Director for South Asia, said: “Access to reliable, affordable energy is critical for MSMEs to scale, compete and contribute to India’s growth story. By partnering with City Union Bank, IFC aims to increase access to sustainable finance and demonstrate the feasibility of financing the energy transition for this crucial sector, while also contributing to India’s energy security.”
City Union Bank is one of the oldest private sector banks with over 120 years of service.
Published on October 31, 2025
#City #Union #Bank #receives #million #commitment #IFC #green #financing #MSMEs