Sector map: banks and NBFCs
Intuition
A bank's own offices emit little and use little water. Its ESG risks come through what it lends to and how it treats customers. A loan book heavy in coal power, steel or flood-prone farm lending carries climate risk. Millions of customer records make data privacy and cybersecurity central. And because banks use depositors' money, governance and fair treatment of borrowers are core to the business.
Mechanics
Material issues
| Issue | Financial channel | Where to find data | Metric to track |
|---|---|---|---|
| Climate credit risk and financed emissions | Credit costs, collateral values, future capital needs | Annual report sector exposures; voluntary climate reports | Exposure to high-emitting sectors; financed emissions and PCAF data quality |
| Data privacy and cybersecurity | Fines, fraud losses, customer loss | BRSR Principle 9; RBI penalty orders | Data breaches; customer complaints; penalties |
| Responsible lending and customer protection | Credit losses, conduct penalties, reputation | RBI orders; ombudsman data; BRSR Principle 9 | Complaints per lakh accounts; mis-selling penalties |
| Financial inclusion | Growth, priority sector compliance | Annual report; BRSR Principle 8 | Share of lending to MSMEs, farmers and underserved areas |
| Governance | Asset quality surprises, related lending | Annual report; auditor reports; RBI actions | Divergence in asset classification; board independence; related-party loans |
Indian rules to know
- RBI climate finance Directions (28 November 2025): rules on green deposits and green finance, with eligible and excluded activities and yearly verification.
- RBI climate disclosure framework: released as a draft in February 2024 and not yet final at the time of review.
- Digital Personal Data Protection Rules: notified on 14 November 2025, with core obligations such as notices, consent and security safeguards applying after 18 months. The DPDP Act allows penalties of up to ₹250 crore for failing to protect personal data.
Sources
From the research
A Comparative Financial Analysis of Three Listed Companies
Three IT services leaders, five years of numbers: similar growth, very different margins and returns on capital, and their October 2026 valuations.
MarketsIPO Issue Price vs. Listing Price vs. Subsequent Performance
Seven of India's most talked-about IPOs since 2021, tracked from issue price to listing to October 2026. Buying on listing day lost money in six of seven.
ValuationPaytm: Valuing a Company With No Clean Comparable
Paytm is part payments processor, part device business, part loan distributor. Why no single peer fits, and how to value it in parts and in reverse.
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