SBI mentioned in Hall Of Shame list of Banks for funding Cluster Bomb Makers
The State Bank of India (SBI) was on 16 June 2016 named in the Hall of Shame list of 158 banking institutions that have invested billions of dollars in companies making cluster bombs. The list was prepared by Dutch campaign group PAX Worldwide Investments in Cluster Munitions report.
State Bank of India (SBI) is the only Indian entity on the list that includes global giants like JP Morgan, Barclays, Bank of America and Credit Suisse.
Highlights of the Report
• The report looks at investments into companies involved in the production of cluster munitions.
• 158 financial institutions invested over 28 billion US dollars in the seven companies researched in the report between June 2012 and April 2016.
• These 7 companies are China Aerospace Science and Industry, China Aerospace Science and Technology, Hanwha (South Korea), Norinco (China), Orbital ATK (US), Poongsan (South Korea) and Textron (US).
• Textron produces the CBU-105 Sensor Fuzed Weapon. Between June 2012 and April 2016, 49 financial institutions invested over 12 billion US dollars in Textron.
• The maximum number of 74 banks are from the US, followed by China (29) and South Korea (26).
• The majority of the financial institutions included in the Hall of Shame are from countries that have not yet joined the Convention on Cluster Munitions (CCM), the international treaty that bans this weapon.
• However, the report points towards the serious concern that there are still 20 financial institutions from seven countries which have joined the CCM.
What led to the inclusion of SBI in the list?
• SBI has been included in the list because of its exposure to Orbital ATK, a US-based company specialising in the design, manufacture and launch of space and rocket systems for commercial, military and other government customers.
• Orbital ATK is one of the world's largest manufacturers of ammunition and a leading supplier of precision systems and electronic warfare. The company is also active in propulsion systems.
• State Bank of India has made an estimated 87 million US dollars available to the companies on the red flag list since June 2012.
About Convention on Cluster Munitions
The Convention on Cluster Munitions (CCM) categorically bans use, production, stockpiling and transfer of cluster munitions. This convention was signed by 94 countries in 2008 and it came into force from August 2010.
Most financial institutions named in the Pax list are from countries that have not signed this convention. However, there are also banks from the countries that have adopted this treaty over years.