BENGALURU: State Bank of India (SBI), the state-run banking giant has been listed in ‘Hall of Shame’ list by PAX, comprising of 158 financial and banking federations spread worldwide. This list is made for the institutions that made billions of dollars investment on the companies involved in making cluster bombs. SBI is the only Indian bank in the list that comprises of global behemoths: Barclays, Bank of America, JP Morgan and Credit Suisse. As reported by The Economic Times website, these companies invested about $28Bn in seven ammunitions producing firms, since June 2012.

PAX, the Dutch campaign group said that, despite being an international ban on the investments to be made on cluster bomb producer firms these banks invested money in ammunition projects. However, SBI said that they worked according to the local rules and regulations and said that there is not any such prohibition in India or in the US to finance this kind of commercial projects. PAX prepared a 275-page report and mentioned that the Convention on Cluster Munitions (CCM) categorically prohibits the production, stockpiling, transfer and use of cluster munitions. About 94 countries signed this convention in 2008, it came into the act from August 1, 2010, and most of the financial institutions on the list are from countries who have not signed the CCM. The US has the most number of 74 banks, followed by China with 29 and South Korea with 26 banks. While, there are some banks from countries that have signed this treaty years back.

SBI is included in the list because of its investment in Orbital ATK, a US based firm. This company is specialized in the designing, manufacturing and launching of small and medium class rocket systems for government, military and commercial customers. PAX stated that SBI has invested about $87Mn in Orbital ATK since June 2012. SBI spokesperson said that many major global banks like JP Morgan, Wells Fargo, Citigroup, Bank of Tokyo, Robinson Humphrey and others contributed in this deal. The person also elaborated that bank participates in syndicated deals to increase its businesses and we are not breaking any kind of laws because all projects are in legal criteria.

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