The 2030 agenda stipulates some SDGs to achieve sustainability at local and global level. The SDGs address an interrelated and complex series of challenges that cannot be overcome without the joint contributions of the public sector, the private sector, academics and the community at large (Gambetta et al., 2021). For SDGs, there is a very high level resource implications across the world, representing global investment needs of approximately $5–7 trillion per year. Finance plays a crucial role in most theories of persistent inequality. In fact, economic theory provides conflicting arguments with regard to the nature of relationship between finance and inequality (Demirguc-Kunt & Levine, 2009). Indian commercial banks have been contributing to the priority sectors through lending (PSL) support for several decades. In this backdrop, the present paper is an attempt on the search of relationship between banks’ PSL and achievement of SDGs, particularly, quality education, gender equality and reduce inequalities in Indian states. Data relating to SDG index of Indian states have been collected from the reports of NITI Ayog for the period 2018-19 to 2020-21 whereas the data relating to bank lending have been taken from the reports of RBI for the study period. Correlation and multiple linear regression models have been used to understand this issue.  The study shows that there is a significant relationship among the selected variables. In some cases, highly significant positive impact has been found in the study. The paper can be useful for governmental policy making and also helpful for further study to find better planning of banking initiatives with respect to the achievement of SDGs.

___________________________________________________________________________________

Keywords: SDGs, Sustainable Development, Priority Sector Lending, Gender Equality, Inequalities.