CBA (ASX:CBA) share price dips despite the launch of discount green loans

Here are all the details of the bank's latest green push

| More on:
farm workers examine an agricultural crop

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Commonwealth Bank of Australia (ASX: CBA) share price is sliding today despite the bank launching a pilot for 'green' agricultural loans.

The bank will be trialling Agri Green Loans, giving farmers and producers discounted rates for investing in environmentally friendly initiatives.

At the time of writing, the CBA share price is $97.72, 1.28% lower than its previous close.

While the CBA share price is suffering, the broader market is gaining. The S&P/ASX 200 Index (ASX: XJO) is currently 0.23% higher.

However, the biggest bank isn't alone in its struggles. All of the big four are in the red on Thursday.

Right now, the share prices of National Australia Bank Ltd (ASX: NAB), Australia New Zealand Banking Group Ltd (ASX: ANZ), and Westpac Banking Corp (ASX: WBC) have slipped by 0.8%, 1.2%, and 0.7% respectively.

Let's take a look at what CBA announced on Thursday.

CBA share price falls amid loan trial

The bank is trialling a new loan offering aimed at helping those in the agriculture sector reduce their environmental footprint.

The loans will go to those working to reduce emissions, sequester carbon, improve soil health, and protect waterways, among other activities.

Doing so will help enhance natural resources, make properties more resilient to climate variability, and boost production and income.

CBA group executive of business banking, Mike Vacy Lyle, commented on the pilot, saying:

From planting shelter belts of trees, to water use efficiency projects, we want to support customers who are adapting to the changing climate and protecting the environment in which they operate. An important part of the loan will be verification with the customer that the funds are used for defined, eligible purposes.

The first pilot loan is going to Victorian tomato grower, Katunga Fresh. The loan will help the business fund the improvement of its glasshouses, making them more efficient and less carbon intensive.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Bank Shares

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Gainers

CBA shares hit another all-time high. Can they surpass $200 in 2025?

CBA shares have a tailwind pushing up their price that has nothing directly to do with the bank's business performance.

Read more »

A hip young man with a beard and manbun sits thoughtfully at his laptop computer in a darkened room, staring at the screen with his chin resting on his hand in thought.
Bank Shares

Should I buy JP Morgan or CBA shares?

CBA shares hit another new all-time high today.

Read more »

guy helping girl invest in shares and dividends
Bank Shares

Is the Westpac share price a buy for passive income?

Should investors look at Westpac shares for income?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Bank Shares

Could the growth of Kiwibank impact ANZ shares?

Could a competitor hurt ANZ’s outlook?

Read more »

Shocked office worker staring at computer screen with colleagues working in the background.
Bank Shares

Why CBA shares could keep on rising

Can the ASX banking giant continue to defy analyst expectations?

Read more »

A man looking at his laptop and thinking.
Share Gainers

Thinking of selling your CBA shares? This expert says you should hold on

CBA shares are up by about 80% since November 2023.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Bank Shares

The catalysts that could bring CBA shares back to earth

CBA is now the world's most expensive banking stock.

Read more »

A money jar filled with coins, indicating an investment return from an ASX dividend share
Bank Shares

Is the CBA share price a buy for passive dividend income?

CBA is one of the biggest dividend payers in Australia. Is it a good buy?

Read more »