Indian Bank Targets EV Charging Sector With New Rs 100 Crore Scheme

Indian Bank is stepping up its efforts to tap opportunities in the EV charging sector, setting a lending target of Rs 100 crore for FY27.

The public sector lender has introduced a dedicated financing scheme to support businesses setting up electric vehicle charging infrastructure across India.

Named 'IND Green Charge', the scheme will provide financial assistance for public, captive and fleet charging stations. It will cover both standalone and franchise-based business models, allowing entrepreneurs and businesses to enter the growing electric mobility market.

Indian Bank Managing Director and CEO Binod Kumar told PTI that the bank plans to offer loans of up to Rs 10 crore, with a maximum repayment tenure of eight years.

"We have set lending targets of Rs 100 crore for the remaining five months of the ongoing financial year and Rs 250 crore for the coming financial year under this scheme," Kumar said.

The bank expects the initiative to encourage entrepreneurship among micro, small and medium enterprises (MSMEs), create employment opportunities and support India's transition towards sustainable mobility.

Indian Bank Sees Growing Opportunities in EV Charging Sector

The launch comes as India's electric vehicle market continues to expand, increasing the need for supporting infrastructure. EV sales rose 29.7% to 26.59 lakh units in FY26, highlighting the growing adoption of electric mobility across the country.

The charging infrastructure market is also expected to witness significant growth. According to industry estimates, India's EV charging-station market is projected to increase from Rs 6,139 crore in 2025 to Rs 21,940 crore by 2030.

This growth presents an opportunity for financial institutions to support businesses investing in charging facilities. Indian Bank views this segment as both a commercial lending opportunity and a green finance initiative.

The bank has assessed different charging infrastructure projects to understand their financial viability. Its evaluation covered:

• AC charging stations.
• DC charging stations.
• High-capacity DC charging infrastructure.
• Project performance under different charging-station utilisation scenarios.

Kumar said the bank had conducted detailed project analysis and stress testing across different utilisation levels. The assessment indicated that financing such projects through the scheme was commercially viable.

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IND Green Charge to Support MSMEs and Emerging Markets

Through IND Green Charge, Indian Bank aims to make financing more accessible to businesses interested in developing charging infrastructure. The scheme also provides flexibility through its standalone and franchise models.

The bank will consider viable proposals from smaller cities and semi-urban areas. However, approvals will depend on several factors, including:

• Local demand: The expected need for EV charging facilities in the area.
• Location suitability: The feasibility of establishing a charging station at the proposed site.
• Projected utilisation: The expected usage and revenue potential of the facility.
• Repayment capacity: The applicant's ability to repay the loan.

By extending financial support to different business models and locations, the bank aims to encourage wider participation in the EV charging sector.

The initiative is also expected to help Indian Bank tap emerging credit demand while supporting the development of India's electric vehicle ecosystem.

With its new financing offering, the lender is looking to combine business growth with sustainable finance. The scheme is expected to support charging infrastructure development and contribute to India's efforts to reduce carbon emissions.