India, May 13 -- Even as India swelters in a severe heat wave, amidst a fossil fuel shortage brought on by geopolitical turmoil, new analysis shows that Indian banks are failing to recognise and integrate climate risks into their business model.

Bengaluru-based think tank Climate Risk Horizons has found that the small steps being taken on climate preparedness are mainly due to regulatory pressure, rather than a full recognition and integration of climate risks into decision making. The fourth edition of its banking report assesses the state of climate-risk preparedness of 35 Indian banks with a combined market capitalisation of around Rs 50 trillion.

The analysis evaluates the banks on ten criteria including Climate Scenario Analysis, B...