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

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.

farm workers examine an agricultural crop

Image source: Getty Images

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

Man working on a laptop from home.
Bank Shares

Why I'd buy Macquarie shares after today's results

The latest results contained some impressive figures and a few disappointments. Here's why I'm looking at it after the sell-off.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Bank Shares

Everything you need to know about the 85-cent NAB dividend

The latest NAB dividend has just been announced…

Read more »

Sad man sitting at desk and grabbing his head as he looks at a laptop.
Bank Shares

NAB shares sink 5%: Would I buy after its results?

The bank's profit figures disappointed, but I'm taking a closer look at whether the market has overlooked some positives.

Read more »

Man analysing data on his laptop.
Bank Shares

Is now a good time for me to buy Westpac shares?

Here's what I think of Australia's oldest bank.

Read more »

Man and woman sitting at table with the man looking a bit puzzled at his laptop.
Bank Shares

Which is better value, the CBA share price or the Westpac share price?

One trades on a much lower earnings multiple than the other, but I think there's more to consider before choosing…

Read more »

View of a business man's hand passing a $100 note to another with a bank in the background.
Bank Shares

Everything you need to know about the Westpac dividend

How big is the upcoming Westpac dividend?

Read more »

Three happy multi-ethnic business colleagues discuss investment or finance possibilities in an office.
Bank Shares

Westpac FY26 results: Would I buy the bank's shares?

The bank has made progress in some important areas, but I'm not convinced its latest results tell the whole story.

Read more »

A man jumps at his own shadow, haunted by past decisions.
Bank Shares

Which ASX 200 bank shares are a buy ahead of tomorrow's RBA interest rate decision?

Here’s how Australia’s largest banks fared in October, and what brokers tip next.

Read more »