Green Banking Practice in Bangladesh

A case study on Shahjalal Islami Bank Ltd,

Page 1
Green Banking Practice in Bangladesh
A case study on Shahjalal Islami Bank Ltd,
Page 2
Letter of Transmittal
Date: 0107-2014
To
The Supervisor
Faculty of Business !"inistration
Pre"ier #niversity
$hittagong
Bangla!esh%
Subject: Submission of the internshi reort on Green Banking Practice in
Bangladesh: A case study on Shahjalal Islami bank Ltd!
Dear Sir & 'a!a"
(t is "y great pleasure to su)"it "y internship report on *+reen Ban,ing Practice in
Bangla!esh: case stu!y on Shah-alal (sla"i )an, .t!%/%
The entire report is )ase! on "y practical e0perience in the Shah-alal (sla"i )an, .t!%/% (
have put "y )est effort in co"pleting the report 1ith all the infor"ation that ( have
collecte! !uring "y stay at the Shah-alal (sla"i )an, .t!%/%
( have a great hope that the report 1ill "eet your e0pectation an! ai! you in getting a
clearer i!ea a)out the su)-ect%
Sincerest gratitu!e for your illu"inating gui!ance%
Sincerely yours
2222222%%
Page 3

Acknowledgement
Firstly ( 1oul! li,e to convey "y gratefulness to the l"ighty for giving "e the a)ility
an! patience to 1or, har! successfully% ( a" also grateful to "y honora)le teachers 1ho
encourage! "e to reach the goal%
( a" not have )een successful in co"plete the report 1ithout the active support an!
cooperation fro" "any persons in the Shah-alal (sla"i )an, .t!%
( have trie! "y )est an! also 1or,e! har! for preparing this report% ( have receive!
1hole-hearte! cooperation fro" "y (nternship supervisor %
( also 1ant to e0press "y strong gratitu!e to "y honora)le teacher an! "y internship
supervisor for her enthusiastic cooperation an! supervision !uring the preparation of the
report% ( a" grateful to hi" for his suggestions an! all instance o)servations to prepare
the report%
Page 4
Executive Summary
+reen )an,ing4 also ,no1n as a social4 an ethical )an,4 alternative4 civic4 or sustaina)le
)an,4 is a )an, concerne! 1ith the social an! environ"ental i"pacts of its invest"ents
an! loans% 5thical )an,s are part of a larger societal "ove"ent to1ar! "ore social an!
environ"ental responsi)ility in the financial sector% This "ove"ent inclu!es: ethical
invest"ent4 socially responsi)le invest"ent4 corporate social responsi)ility4 an! is also
relate! to such "ove"ents as the fair tra!e "ove"ent ethical consu"eris"4 )oycotting4
etc% 5thical )an,ing is a -uvenile sector 1ithin this "ove"ent% 6ther areas4 such as fair
tra!e4 have co"prehensive co!es an! regulations to 1hich all in!ustries that 1ish to )e
certifie! as fair tra!e "ust a!here% 5thical )an,ing has not !evelope! to this point7
)ecause of this it is !ifficult to create a concrete !efinition !istinguishing e0actly 1hat it
is that sets an ethical )an, apart fro" conventional )an,s% 5thical )an,s are regulate! )y
the sa"e authorities as tra!itional )an,s an! have to a)i!e )y the sa"e rules% (n this
report at first ( trie! to su""ari8e an overvie1 of S9(B.% Then ( trie! to !efine !efinition
of green Ban,ing4 history an! )ac,groun! of green )an,ing% (n the "i!!le of our report4
( "otivate! )y our stu!y to !escri)e a)out the i"portance4 "a-or areas4 pro!ucts of green
)an,ing% Then ( give various initiatives ta,en )y internationally4 nationally to i"ple"ent
green )an,ing% Then 1e trie! to !escri)e the green )an,ing policy of S9(B.% ( also give
so"e fin!ings of report% (n conclusion ( !escri)e the a!vantages of S9(B. to use +reen
Ban,ing as an instru"ent to reach the 1: core people of Bangla!esh% Because one of the
"a-or econo"ic agents influencing overall in!ustrial activity an! econo"ic gro1th is the
financial institutions such as )an,ing sector% Since )an,ing sector is one of the "a-or
sta,e hol!ers in the (n!ustrial sector4 it can fin! itself face! 1ith cre!it ris, an! lia)ility
ris,s% Further4 environ"ental i"pact "ight affect the ;uality of assets an! also rate of
return of )an,s in the long-run% Thus the )an,s shoul! go green an! play a pro-active
role to ta,e environ"ental an! ecological aspects as part of their len!ing principle4 1hich
1oul! force in!ustries to go for "an!ate! invest"ent for environ"ental "anage"ent4
use of appropriate technologies an! "anage"ent syste"s% This paper e0plores the
i"portance of +reen Ban,ing4 sites international e0periences an! highlights i"portant
lessons for sustaina)le )an,ing an! !evelop"ent in Bangla!esh% Finally this paper tries
to !ra1 picture ho1 Sustaina)le !evelop"ent can )est )e achieve! )y allo1ing "ar,ets
to 1or, 1ithin an appropriate fra"e1or, of cost efficient regulations an! econo"ic
instru"ents%
Page <
"!" Introduction
Deforestation4 !issertation4 floo!4 soil erosion4 siltation4 se!i"entation4 river )an,
erosion4 increase! evaporation4 $o2 e"issions4 rising sea-level4 !isplace"ent4 cyclones4
Stalini8ation4 arsenic conta"ination are "ost )urning 1or! in the present 1orl!% n! all
1or!s are relate! natural !isaster an! cli"ate change% Because4 cli"ate change is the
"ost co"plicate! issue the 1orl! is facing% cross the glo)e there have )een continuous
en!eavors to "easure an! "itigate the ris, of cli"ate change cause! )y hu"an activity%
nother na"e of this atte"pt is *Sustaina)le Develop"ent/ to us% The process of
sustaina)le !evelop"ent involves all sectors in the econo"y = +overn"ent4 >+6s4
corporate4 citi8ens an!4 of course4 the financial sector% 6ur )elove! "other lan!
Bangla!esh is one "ost affecte! country )y this cli"ate change% n! Bangla!esh
)an,ing in!ustry is ahea! one step fro" other financial institutions for ta,ing en!eavors
to "easure an! "itigate the ris, of cli"ate change cause! )y hu"an an! )an,ing
activity% This activity is fa"iliar in )an,ing in!ustry 1ith title of *+reen Ban,ing/%
Page :
"!# $rigin of the %eort
'anage"ent of any )usiness of any )usiness activity re;uires so "uch e0pertise fro"
the part of its e"ployees% To ,eep pace 1ith the ne1 tren! financial institutions ? other
organi8ation nee! e0ecutive 1ith "o!ern ,no1le!ge% The ,no1le!ge shoul! have so"e
practical e0perience also% To fulfill this re;uire"ent "ost of the !epart"ents has )een
intro!uce! a three "onth internship progra" as an in!ispensa)le part of BB progra"%
The authority of Pre"ier #niversity authori8es "e to !o a practical orientation at
Shah-alal (sla"i Ban, .t!%
Page 7
"!& Scoe of the %eort
Scope "eans area of operations or fiel! of the stu!y% The scope of this report 1as
e0ten!e! to the +reen Ban,ing activities of Bangla!esh an! Shah-alal (sla"i Ban,
.i"ite!%
Page @
"!' $bjecti(e of the %eort
The o)-ectives of the stu!y are as follo1s:
To ,no1 the )asic concept an! o)-ectives of green )an,ing%
To fin! out an! evaluate the services an! perfor"ance of green )an,ing practice
in Bangla!esh
To i!entify the green )a,ing services of S9(B.
To evaluate the perfor"ance of green )an,ing practice in S9(B.
To i!entify the pro)le"s of green )an,ing practice an! reco""en! so"e
suggestions for overco"ing the pro)le"s%
Page A
"!) *ethodology of the %eort!
This is an e0ploratory type of research% (nfor"ation collecte! to furnish this report is
)oth fro" pri"ary an! secon!ary sources% The overall process of "etho!ology has )een
given )elo1:
Primary Sources of +ata:
6fficers of Shah-alal (sla"i )an, .t!
Secondary Sources of +ata:
nnual report of Shah-alal (sla"i )an, .t!%
Be)site of Shah-alal (sla"i )an, .t!%
*ethod of data collection:
Face to face intervie1 "etho!
Target oulation:
6fficers of Shah-alal (sla"i )an, .t!
Samle Si,e:
Four officers an! t1enty si0 foreign e0change clients select to ta,e
intervie1%
Samling Techni-ue: $onvenience sa"pling
Page 10
"!. Limitations of the %eort
The respon!ent "ay )e unintereste! to ans1er the ;uestions%
Ti"e 1ill )e a "a-or constraint in accu"ulating all sorts of infor"ation in an
organi8e! 1ay%
$onfi!entiality of !ata 1ill )e another ,ey )arrier that 1ill )e face! !uring the
con!uct of this stu!y% s every organi8ation has their o1n secrecy that is not
reveale! to others4 so ac;uiring the a)solute ra1 infor"ation 1ill )e a !ifficult
an! al"ost i"possi)le tas, for "e%
.arge-scale research 1ill not )e possi)le !ue to constraints an! restrictions of
)oth ti"e perio! an! )y the organi8ation as 1ell%
+reen Ban,ing Technology is ne1ly co"e to our country4 so4 there is no accurate
infor"ation availa)le%
The infor"ation sources regar!ing this stu!y are not so "uch large% (t 1oul! )e
"ore correct if the stu!y con!uct 1ith large infor"ation sources%
Page 11
Background of the organi,ation
Shahjalal Islami Bank Limited CS9(B.D co""ence! its co""ercial operation in
accor!ance 1ith principle of (sla"ic Shariah on the 10th 'ay 2001 un!er the Ban,
$o"panies ct4 1AA1% During last eight years S9(B. has !iversifie! its service coverage
)y opening ne1 )ranches at !ifferent strategically i"portant locations across the country
offering various service pro!ucts )oth invest"ent ? !eposit% (sla"ic Ban,ing4 in
essence4 is not only (>T5E5ST-FE55 )an,ing )usiness4 it carries !eal 1ise )usiness
pro!uct there)y generating real inco"e an! thus )oosting +DP of the econo"y% Boar! of
Directors en-oys high cre!ential in the )usiness arena of the country4 'anage"ent Tea"
is strong an! supportive e;uippe! 1ith e0cellent professional ,no1le!ge un!er
lea!ership of a veteran Ban,er 'r% 'uha""a! li% >a"e of the $o"pany Shah-alal
(sla"i Ban, .i"ite! .egal For" pu)lic li"ite! co"pany incorporate! in Bangla!esh
on 1st pril 2001 un!er the co"panies ct 1AA4 an! liste! in Dha,a Stoc, 50change
.i"ite! an! $hittagong Stoc, 50change .i"ite!% $o""ence"ent of Business 10th 'ay
2001%
#!" S/IBL0s 1ision
To )e the uni;ue "o!ern (sla"i Ban, in Bangla!esh an! to "a,e significant contri)ution
to the national econo"y an! enhance custo"ersF trust ? 1ealth4 ;uality invest"ent4
e"ployeesF value an! rapi! gro1th in sharehol!ersF e;uity%
#!# S/IBL0s *ission
To provi!e ;uality services to custo"ers%
To set high stan!ar!s of integrity%
To "a,e ;uality invest"ent%
To ensure sustaina)le gro1th in )usiness%
Page 12
To ensure "a0i"i8ation of Sharehol!ersF 1ealth%
To e0ten! our custo"ers innovative services ac;uiring state-of-the-art technology
)len!e! 1ith (sla"ic principles%
To ensure hu"an resource !evelop"ent to "eet the challenges of the ti"e%
#!& S/IBL0s Strategies
To strive for custo"ers )est satisfaction ? earn their confi!ence%
To "anage ? operate the Ban, in the "ost effective "anner%
To i!entify custo"erGs nee!s ? "onitor their perception to1ar!s "eeting those
re;uire"ents%
To train ? !evelop all e"ployees ? provi!e the" a!e;uate resources so that the
custo"erGs nee!s are reasona)ly a!!resse!%
To pro"ote organi8ational efficiency )y co""unicating co"pany plans4 polices
? proce!ures openly to the e"ployees in a ti"ely fashion%
To cultivate a congenial 1or,ing environ"ent%
To !iversify portfolio )oth the retail ? 1holesale "ar,ets%
#!' S/IBL0s *otto
$o""itte! to $or!ial Service%
#!) Shariah 2ouncil
Shariah $ouncil of the Ban, is playing a vital role in gui!ing an! supervising the
i"ple"entation an! co"pliance of (sla"ic Shariah principles in all activities of the Ban,
since its very inception% The $ouncil4 1hich en-oys a high status in the structure of the
Ban,4 consists of pro"inent ule"a4 repute! )an,er4 reno1ne! la1yer an! e"inent
econo"ist%
'e")ers of the Shariah $ouncil "eet fre;uently an! !eli)erate on !ifferent issues
confronting the Ban, on Shariah "atters% They also con!uct Shariah inspection of
)ranches regularly so as to ensure that the Shariah principles are i"ple"ente! an!
co"plie! 1ith "eticulously )y the )ranches of the Ban,%
Page 13
#!. S/IBL0s +eosit Schemes
'u!ara)a 'onthly (nco"e
'u!ara)a Dou)le 'oney
'u!ara)a 'onthly Deposit
'u!ara)a 'illionaire
'u!ara)a Ha-i Deposit
'u!ara)a Housing Deposit
'u!ara)a S"all Business
'u!ara)a $ash Ba;f Deposit
'u!ara)a .a,hopoti Deposit
'u!ara)a Bi)aho Deposit
'u!ara)a 'ohor Deposit
'u!ara)a Shi,h,ha Deposit
2.7 Account services:
l Ba!iah $urrent Deposits C$DD
'u!ara)a Saving Deposits C'SDD
'u!ara)a Ter" Deposits C'TDD
'u!ara)a Short >otice Deposits C'S>DD
Page 14
&!" 2omments of e3erts about Green Banking
IBe have to change our "in!set a)out environ"ental issues for "a,ing a )etter future
through greening our "in!4I sai! Bangladesh Bank Go(ernor Atiur %ahman%
I(t is ti"e to focus on protecting our planet through initiating green )an,ing4 )ecause the
"ain o)-ective of green )an,ing is to protect environ"ent through pursuing
environ"ent- frien!ly financing policies%I *Sai! *amun %ashid, 43! managing
director of 2itibank 5A%
IBe nee! to focus on sustaina)le !evelop"ent approach )ecause it has a close lin, 1ith
the !evelop"ent of other sectors4 )an,ing sector can play a vital role to encourage other
in!ustries to go green through pro"oting eco-frien!ly financing sche"es says Bandana
Saha, director general for BIB*%
IThe )an,s shoul! priorities loaning the sectors that pro"ote environ"ental
practices4 The )an,s can also launch green initiatives 1ith their o1n )usiness
operations through pursuing cost cutting4 recycling of "aterials an! e;uip"ent an!
1aste "ini"i8ation strategies4 the financial institutions shoul! initiate Fgreen office
gui!eF to help protect the eco-syste"% #se of online co""unication instea! of printe!
!ocu"ents4 installation of energy efficient e;uip"ent4 use of filtere! 1ater in place of
)ottle! 1ater an! encouraging usage of energy efficient cars are so"e of the e0a"ples of
practicing green )usiness/ sai! Shah *d Ahsan 6abib, director 7training8 of BIB*!
&!# 4(olution of Green Banking
(n 'arch 200A4 $ongress"an $hris Jan Hollen in #S intro!uce! a +reen Ban, ct
1ith the ai" of esta)lishing a green )an, un!er the o1nership of the #S govern"ent% (ts
o)-ective 1as to offer financial support to efforts to increase efficient energy usage4 an!
re!uce car)on e"issions an! environ"ental pollution resulting fro" energy creation%
Ban, Technology >e1s has recently given $itigroup the #S )an,ing giant4 top honors in
its first ran,ing of F"ericaFs +reenest Ban,sG% The a1ar! highlighte! the
Page 1<
acco"plish"ents of $itiFs Sustaina)le 6perations an! Technology progra"4 1hich
inclu!es !o8ens of initiatives ai"e! at shrin,ing environ"ental footprints an!
controlling costs%
(n -ust one e0a"ple4 $iti up!ate! co"puter har!1are across the 14000K $iti)an,
)ranches in >orth "erica4 re!ucing energy costs )y 1< percent a year4 1hile i"proving
the spee! 1ith 1hich it services custo"ers%
The Financial Ti"es of .on!on announce! the Sustaina)le Ban,ing 1ar!s last year%
#LFs $ooperative Ban, 1on the FSustaina)le Ban, of the MearF a1ar! an! only HSB$4
a"ong large glo)al )an,s4 1as a runner-up in any category%
he goo! ne1s is4 BE$ Ban, .t! fro" Bangla!esh )eca"e the regional 1inner for
Fsian 5"erging 'ar,ets Sustaina)le Ban, of the MearF4 1hich they are also portraying
in all their )ill )oar!s an! pro"otion ca"paigns% +oo! ne1s for all of us%

&!& $bjecti(es of Green Banking
The )roa! o)-ective of the +reen )an,s are avoi!ing 1aste an! giving priority to
environ"ent an! society%
Focusing on environ"ent-frien!ly initiatives )y provi!ing innovative financial an!
ensure sustaina)le !evelop"ent% %
#sing organi8ational resources 1ith responsi)ility%
,eeping the 1orl! liva)le for a long perio! of ti"e%
To "ini"i8e paper 1or,s as "uch as possi)le insi!e an! outsi!e the )an,%
To achieve cost an! ti"e efficiency%
Page 1:
&!' Imortance of Green Banking
The pu)lic concern at the state of the environ"ent has )een gro1ing significantly in the
last fe1 years4 "ostly !ue to apparently unusual 1eather patterns4 rising greenhouse
gases4 !eclining air ;uality etc% Ban,s hol! a uni;ue position in an econo"ic syste"4 an!
can affect pro!uction an! )usinesses through their financing activities%
Ho1ever4 if green )an,ing si"ply "eans incurring a!!itional costs )y a )an,4 it "ight
never )e accepte! as co""on )usiness practice )y the glo)al )an,ing in!ustry% Though4
positive relationship )et1een green )an,ing strategy an! profita)ility has not al1ays
)een the case4 there is evi!ence that socially an! environ"entally responsi)le )an,s can
also )e financially successful an! have gro1th rates si"ilar to4 or even )etter than4 those
of their conventional co"petitors%
'oreover4 )an,s that "ainly !o )usiness 1ith the !epositorsF "oney cannot avoi!
responsi)ility to the society% Bhen the co""on people ta,e care of )an,s in their )a!
!ays4 )an,s "ust )e "a!e responsi)le to ta,e care of the society as 1ell%
Ban,s that 1ere once seen only as profit "otive institutions have )een a!-usting to a
"ore !e"an!ing "ar,et an! a "ore socially conscious society over the last t1o !eca!es%
5nviron"ental concern is at the centre of the green )an,ing strategy% n increasing
nu")er of glo)al )an,s aroun! the 1orl! are going green )y launching environ"ental
frien!ly initiatives an! provi!ing innovative green pro!ucts%
(n the long run4 the tren! to1ar!s green )an,ing 1ill )e largely !riven )y consu"er
Page 17
)ehavior% $o""on people an! consu"ers are )eco"ing increasingly a1are of the
responsi)le )ehavior of )usinesses%

'!" +raft guideline of Green banking in Bangladesh
Bangla!esh Ban, CBBD has prepare! a !raft policy gui!eline for intro!ucing green
)an,ing this year in line 1ith glo)al !evelop"ent an! response to the
environ"ental !egra!ation% The gui!eline4 poste! on the central )an, 1e) site4
outlines a three-stage roa!"ap for green )an,ing4 re;uesting pu)lic fee!)ac, )y
9anuary 2<4 2011%
The gui!eline4 in the first phase4 suggests all )an,s to !evelop green )an,ing policies
an! esta)lish separate green )an,ing cells an! incorporate environ"ental ris,
"anage"ent strategies )y 9une 30 this year% (n this phase4 the )an,s are also a!vise!
to intro!uce green an! create cli"ate ris, fun!s to finance floo!4 cyclone an! !rought
prone areas at regular interest rate 1ithout charging a!!itional ris, pre"iu"%
Pro"oting eco-frien!ly pro!ucts4 supporting training an! events for raising a1areness
for environ"ental ris, "anage"ent are also suggeste! to inclu!e in the regular activities
of the )an, in the ne0t si0 "onths%
(n the secon! phase4 the !raft suggests )an,s to ta,e specific policies )y 9une 2012 for
!ifferent environ"ental sensitive sectors such as agriculture4 poultry4 !airy4 far"ing4
tannery4 fisheries4 te0tile an! apparels4 rene1a)le energy4 pulp an! paper4 sugar an!
!istilleries4 construction an! housing4 engineering an! )asic "etal4 che"icals4 ru))er an!
plastic in!ustry4 hospital&clinic4 che"ical tra!ing4 )ric, "anufacturing an! ship )rea,ing%
During this perio!4 all )an,s 1ill also set up green )ranches to use "a0i"u"
natural light4 rene1a)le energy4 energy saving light )ul)s an! other e;uip"ents% During
the sa"e perio!4 they 1ill have to !eter"ine a set of achieva)le targets an! strategies4
an! !isclose these in their annual reports an! 1e)sites% They 1ill have to set up green
Page 1@
)ranches% The )an,s shoul! increasingly rely on virtual "eeting through vi!eo
conferencing%
ccor!ing to the !raft gui!eline4 )an,s in the ne0t one year 1ill a!opt a green strategic
plan4 !eter"ining their target for green )an,ing% The !raft says a syste" of environ"ent
"anage"ent shoul! )e in place in all )an,s )efore they step into the thir! phase of green
)an,ing4 to )e co"plete! )y 9une 2013%
(n this final stage4 )an,s 1ill focus on fine tuning of their green activities an! 1ill loo,
for "ore innovative pro!ucts an! services to e0pan! eco-frien!ly )usiness an!
in!ustries%
$o""ercial )an,s 1ill have to a!opt a co"prehensive green )an,ing policy )y
Dece")er 2013 as part of the central )an,Fs efforts to "a,e )an,ing practices
"ore responsi)le to social an! environ"ental causes% The central )an, 1ill na"e top ten
)an,s for their overall perfor"ances in green )an,ing4 an! 1ill ta,e into account
to give it per"ission to open ne1 )ranches% (n its policy gui!eline for green )an,ing4
the BB sai! co-frien!ly )usiness activities an! energy efficient in!ustries shoul! get
preference in financing )y the )an,s% The )an,s 1ill have to infor" the BB of
their initiatives on a ;uarterly )asis 1ithin 1< !ays after the en! of a ;uarter% The first
;uarterly report has to )e su)"itte! )y 9uly 1<4 2011%Besi!es avoi!ing negative i"pacts
on environ"ent through )an,ing activities4 the )an,s are e0pecte! to intro!uce
environ"ent frien!ly green pro!ucts to a!!ress the core environ"ental challenges of the
country%
The co""ercial )an,s 1ill no1 re;uire ta,ing "easures to protect environ"ental
pollution 1hile financing a ne1 pro-ect or provi!ing 1or,ing capital to the e0isting
enterprises% The gui!elines a!vise! the )an,s to facilitate their clients 1ith ut"ost care in
opening letter of cre!it for installation of effluent treat"ent plant C5TPD in the in!ustrial
units% They 1ere also as,e! to finance in solar energy4 )iogas4 5TP an! Hy)ri! Hoff"an
Liln CHHLD in )ric,fiel! un!er BB e -finance sche"e%
Page 1A


'!# Green banking in Bangladesh
Bangla!esh Ban,4 the central )an,4 has a greater role in shaping up a concrete gui!eline
for green )an,ing practices in Bangla!esh% ccor!ing to central )an,4 each )an, an!
financial institution can for"ulate a strategy an! gui!eline for +reen Ban,ing an! +reen
Financing%
The co""ercial )an,s are to !evelop green )an,ing policies an! sho1 general
co""it"ent on environ"ent through in-house perfor"ances )y Dece")er 31 this
year% high-po1ere! co""ittee 1ill )e responsi)le for revie1ing the )an,sG
environ"ental policies4 strategies an! progra"s%
The co""ittee 1ill )e co"prise! of !irectors fro" the )oar! in case of sche!ule!
Bangla!eshi )an,s an! regional chief of glo)al office an! "e")ers fro" the top
"anage"ent inclu!ing chief e0ecutive in case of foreign )an,s% The )an,s 1ill allocate a
consi!era)le fun! in their annual )u!get for green )an,ing4 an! set up a separate green
)an,ing unit% senior e0ecutive shoul! hea! the unit4 1hich 1ill report to the
high-Po1ere! co""ittee ti"e to ti"e% They 1ill have to co"ply 1ith the instructions
stipulate! in the !etaile! gui!elines on 5nviron"ental Eis, 'anage"ent% The )an,s 1ill
also incorporate environ"ental an! cli"ate change ris,s as part of the e0isting cre!it ris,
"etho!ology prescri)e! to assess a prospective )orro1er% The )an,s shoul! ta,e
"easures to save electricity4 1ater an! paper consu"ption4 accor!ing to the BB
gui!elines% F+reen 6ffice +ui!eF or at least a set of general instructions shoul!
Page 20
)e circulate! a"ong the e"ployees% (nstea! of relying on printe! !ocu"ents4 online
co""unication shoul! )e e0tensively use! C1here possi)leD for office "anage"ent%
5nergy saving )ul)s shoul! replace the regular ones in )ranches&offices of the
)an,s% They shoul! "a,e plans to use solar energy on their pre"ises4 an! encourage
e"ployees to purchase energy efficient cars%
'!& %oles of Green banking
The people of the 1hole 1orl! are concerne! a)out the environ"ental !egra!ation4
especially the rising of glo)al te"perature an! there)y "elting of glaciers an! ice-)erg in
the polar region an! conse;uently rising of sea level4 1hich 1ill !irectly affect the lo1
lying countries of the 1orl!% The 1orl! conscious people are also concerne! a)out the
increase of +reen House +ases an! $hlorofluorocar)ons C$F$sD an! there)y !epletion
of 68one layer% s such4 every person an! especially the professionals "ust have
greater role to chec, the environ"ental !egra!ation%
Ban,ers are the i"portant professional group 1ho has interaction 1ith the other groups
of people an! also 1ith general "asses% They can a!opt !ifferent green activities 1ithin
their in-house environ"ent an! also can initiate the protection of the air pollution4 1ater
pollution )y their clients% Ban,ers can finance the green pro-ects4 1hich are
environ"ental frien!ly an! !iscourage the pro-ects that !a"age the environ"ent% (t 1ill
)e o)ligatory for each person to sho1 respect to the environ"ental issues% 6ther1ise4 the
environ"ents 1here the concerne! person lives 1ill )e inha)ita)le an! as 1hole
the country an! the glo)e 1ill no longer )e safe place% Be have to use resources
carefully an! ,eep in the "in! that the reserve of the resources is not unli"ite! an! its
e0cessive use "ay en!anger the future generation% Be have to thin, that each of our
activity has a specific i"pact on the environ"ent% s a )est creation of l"ighty4 1e
have greater role to conserve the environ"ent4 "aintain )io!iversity4 not to
Page 21
en!anger other fauna an! flora an! a)ove all a green4 healthy planet for safe an!
soun! living of our future generations% Since )an,ing in!ustry is a vital institution in the
econo"ic an! )usiness activity roun! the 1orl!4 )an,ers cannot re"ain in!ifferent to
this )urning issue% )an,er or a )an,ing in!ustry "ay a!!ress "any issues to save
environ"ental !egra!ation an! conserve the ecological )alance% +reen )an,ing is a
goo! 1ay of "a,ing people a1are of glo)al 1ar"ing% 5ach )usiness"an 1ill contri)ute
to the environ"ent an! "a,e this earth a )etter place to live an! en-oy% (n a!!ition4 it
is envisage! that this institution is going to 1or, to1ar!s re!ucing the countryFs
!epen!ence on foreign energy sources4 fighting cli"ate change
an! creating a!!itional -o)s through the provision of healthier energy generation
facilities% +reen finance "ay cover all the financial services relate! to the pro"otion an!
!evelop"ent of green in!ustry an! green econo"y 1here the environ"ental )enefits in
ter"s of re!uce! car)on !epen!ency or re!uce! ecological scarcity are the "ost
significant% +reen )an,ing practices of )an,s are connecte! 1ith )oth internal operation
an! pro!uct ecology% So"e )an,s are engage! in car)on offsetting4 1hich refers to the
effort of canceling out the cli"ate-changing effects of its o1n greenhouse gas e"issions%
Ban,s4 )y using their co""ercial len!ing an! securities un!er1riting4 "ay cataly8e the
necessary transition to an econo"y that "ini"i8es greenhouse gas pollution an! relies
on energy efficiency%
Page 22
There is no !ou)t that the co")ine! threats associate! 1ith cli"ate change an!
)io!iversity loss call for a !eeper co""it"ent of resources an! invest"ent fro" all
sta,ehol!ers% (n the en!eavor of e"ission re!uction an! conservation4 sta,ehol!ers have
)een contri)uting in !ifferent 1ays in !ifferent countries an! regions% +reen )an,ing is
-ust one of the initiatives )y sta,ehol!er - )an,s an! financial institutions% The
environ"entally responsi)le )an,s !o not only i"prove their o1n stan!ar!s )ut
also affect socially responsi)le )ehavior of other )usinesses% The )an,s 1ill have
to go for online )an,ing )y eli"inating paper 1aste4 saving gas an! car)on
e"ission4 re!ucing printing costs an! postage e0penses%
'!' Green Banking ractices
Practices of in house Green Banking:
9aste *anagement:
green )an,er "ust )e cautious a)out 1astage an! 1aste "anage"ent% Be shoul! try to
control the 1astage of resources li,e 1ater4 gas4 electricity4 paper4 foo!s etc% For
e0a"ple4 if 1e !raft our letters on a co"puter rather than in paper4 it 1ill save "illions
Page 23
of paper as 1ell as thousan!s of trees that provi!e ra1 "aterials for paper
pro!uction% Si"ilarly4 if 1e select a location of the )ranch of a )an, 1ith sufficient
access to light an! air4 it 1ill save huge electricity an! create a healthy environ"ent%
Bastages "ust )e groupe! li,e organic an! inorganic 1astage% 6rganic "aterials li,e
foo!4 vegeta)les4 ani"als etc% can )e recycle! for "anure4 gas an! electricity etc% The
inorganic "aterial li,e paper4 )ottles4 pots etc% can )e recycle!% Bet an! !egra!a)le
"aterials can )e processe! !irectly ,eeping un!er the soil% The recycling "aterials
shoul! )e !ispose! off at the respective !isposal site an! the rotten ite"s shoul! )e
)urie! un!er the soil an! as such4 pollution can )e protecte!%
2lean and hygienic en(ironment:
green )an,er 1ill not thro1 any 1aste4 )ottles or pac,ing "aterials here an!
there% 5ach group of 1aste shoul! )e ,ept in a separate place4 1hich !oes not
pollute the environ"ent an! all the 1astes "ust )e !ispose! off separately% green
)an,er 1ill not spit or cough on the floor4 1alls or on the roa!%
$n line statements, emailing documents:
Be "ust sen! account state"ents an! )alance confir"ation etc% to the clients through
online an! through e"ail4 1hich 1ill save paper4 ti"e4 cost an! a)ove all the
environ"ent% Be "ay use these technologies for our clients as 1ell as inter)an,
correspon!ence%
Sound Pollution:
Be shoul! ,eep our voice lo1 1hen 1e converse an! also convince our clients "aintain
this for the sa,e of healthy 1or,ing environ"ent in the )ranches%
Installation of solar anel in the rural branches and using high mileage (ehicles or
using shared (ehicles instead of ersonal (ehicle:
Since Bangla!esh is an energy !eficit country 1e can install solar panels in all Branches
as an alternative energy source% Be can also use the vehicles 1hich consu"e less
fuel 1hich 1ill save huge fuel i"port of the country% Be can also use )ig vehicles to
carry the e"ployees of the Ban,s instea! of personal vehicle to re!uce fuel as 1ell traffic
-a" in the roa!s%
Page 24
Practices by the Bankers in their business area
:inancing only the green rojects:
Ban,ers "ust )e a1are of the environ"ental issues an! they "ust go for financing the
pro-ects that !o not pollute the environ"ent% The in!ustries that are finance! )y the
)an,s "ust have effluent treat"ent plant C5TPD4 recycling facilities an! s"o,e an! gas
arresting unit% The in!ustries "ust not release any ,in! of effluents4 che"icals or
s"o,e to the environ"ent% Ban,s "ust not finance any !irty pro-ect that pollutes the
environ"ent%
1oluntary acti(ities of Banks:
Ban,s shoul! ta,e initiative to "a,e their clients a1are )y organi8ing se"inar an!
sy"posiu"% They can organi8e a1areness ca"paign in schools an! colleges% They can
participate in the tree plantation an! cleanliness progra""es in city areas%
9orking on secific green roject:
6ur country has lot of pro)le"s of proper 1aste "anage"ent4 !rainage an! sanitation4
an! affecte! )y river pollution4 1ater pollution )y pestici!es etc% 5very )an, can
un!erta,e a specific green pro-ect for re"oval of e0isting polluting su)stances fro" the
ecosyste"%
'!) Areas of Green Banking
+reen Ban, co"es in "any for"s% #sing online )an,ing instea! of )ranch )an,ing%
Paying )ills online instea! of "ailing the"% 6pening up $Ds an! "oney "ar,et
accounts at online )an,s4 instea! of large "ulti-)ranch )an,s%
+reen Ban, loo,s at green )an,ing in three areas - operational4 technological an! client
acceptance% Ban,s have "a!e i"prove"ents in the operational area such as replacing
our !aily courier service 1ith scans an! electronic !elivery% ll e"ployees receive
paychec,s an! rei")urse"ent chec,s electronically%
Page 2<
'!. Green Banking roducts and ser(ices
Financial institutions are rushing to "ar,et 1ith ne1 or re-pac,age! pro!uct an! service
6fferings fro" green auto insurance to innovative pro-eco "ortgages an! ne1
sustaina)ility-)ac,ing invest"ent fun!s%
Green +eosits: Ban,s can offer higher rates on $Ds4 "oney "ar,et accounts4 chec,ing
ccounts an! savings account if custo"ers opt to con!uct their )an,ing activities online%
Green *ortgages and Loans: green "ortgage offers )etter rates or ter"s for energy
efficient houses% +reen "ortgages can allo1 ho"e )uyers to a!! as "uch as an
a!!itional 1< percent of the price of their house into loans for upgra!es inclu!ing
energy-efficient 1in!o1s4 solar panels4 geo-ther"al heating or 1ater heaters% The
savings in "onthly
energy )ills can offset the higher "onthly "ortgage pay"ents an! save "oney in
Page 2:
the long run% The 5nergy 5fficient 'ortgage C55'D is a type of H#D-approve!
green "ortgage that 1ill cre!it you for your ho"eGs energy efficiency in the
"ortgage itself% 'any ho"e i"prove"ents also ;ualify for the energy ta0 cre!it%
nyone un!erta,ing an energy-saving house pro-ect shoul! shop aroun! for a )an, that
offers a special rate for a green "ortgage or loan%
Green 2redit 2ards: green cre!it car! allo1s car!hol!ers to earn re1ar!s or points
1hich can )e re!ee"e! for contri)utions to eco-frien!ly charita)le organi8ations% These
car!s offer an e0cellent incentive for consu"ers to use their green car! for their
e0pensive purchases% ("agine the "illions of !ollars that coul! )e raise! for 1orth1hile
environ"ental groups if green cre!it car!s really too, off%
Green %e;ard 2hecking Accounts: pro!uct calle! re1ar! chec,ing accounts pays a
)onus rate to custo"ers 1ho go green% $usto"ers can earn higher chec,ing account rates
if they "eet "onthly re;uire"ents li,e receiving electronic state"ents4 paying )ills
online or using a !e)it or chec, car!% Bith this )an,ing pro!uct higher rates an! eco-
frien!ly livings go han!-in-han!%

'!< Prosects of Green Banking
The )an,ing sector "ay also have significant i"pacts on )io!iversity 1hile provi!ing
financial support to high i"pact sectors such as forestry4 "ining4 oil an! gas4
fisheries4 an! infrastructure% (n pro-ect finance4 )an,s "ay e0ercise their po1ers through
assu"ing roles as environ"ental police"an to ensure that their )orro1ers co"ply
1ith the environ"ental stan!ar!s4 an! coul! enter into a partnership 1ith !ifferent
in!ustries an! encourage co"panies to )e "ore sustaina)le%
Eegulatory enforce"ent )y govern"ents4 pressure fro" the civil society an! consu"ers4
voluntary support4 an! responses )y the )usiness entities are precon!itions for creating a
congenial at"osphere for offering an! accepting pro!uctive green )an,ing services%
co""on platfor" or uni;ue approach )y the policy "a,ers an! civil society groups in
all countries or regions 1oul! give the )est result% Ho1ever4 creating a co""on
platfor" an! launching a unifor" approach 1oul! re;uire "a-or political effort )y
all glo)al econo"ies - a tough -o)% Bangla!esh Ban, has alrea!y provi!e! T, 200
Page 27
crore for rene1a)le energy in 1hich the share of green energy 1oul! )e 2 per cent in
total energy%

Page 2@
Shahjalal Islami Bank Limited CS9(B.D co""ence! its co""ercial operation in
accor!ance 1ith principle of (sla"ic Shariah on the 10th 'ay 2001 un!er the Ban,
$o"panies ct4 1AA1% During last eight years S9(B. has !iversifie! its service coverage
)y opening ne1 )ranches at !ifferent strategically i"portant locations across the country
offering various service pro!ucts )oth invest"ent ? !eposit% (sla"ic Ban,ing4 in
essence4 is not only (>T5E5ST-FE55 )an,ing )usiness4 it carries !eal 1ise )usiness
pro!uct there)y generating real inco"e an! thus )oosting +DP of the econo"y% Boar! of
Directors en-oys high cre!ential in the )usiness arena of the country4 'anage"ent Tea"
is strong an! supportive e;uippe! 1ith e0cellent professional ,no1le!ge un!er
lea!ership of a veteran Ban,er 'r% 'uha""a! li% >a"e of the $o"pany Shah-alal
(sla"i Ban, .i"ite! .egal For" pu)lic li"ite! co"pany incorporate! in Bangla!esh
on 1st pril 2001 un!er the co"panies ct 1AA4 an! liste! in Dha,a Stoc, 50change
.i"ite! an! $hittagong Stoc, 50change .i"ite!% $o""ence"ent of Business 10th 'ay
2001%
Phase= ":
separate +reen Ban,ing #nit or $ell 1ill )e esta)lishe! having responsi)ility of
!esigning4 evaluating an! a!"inistering relate! green )an,ing issues of the )an,% senior
e0ecutive shoul! )e assigne! 1ith the responsi)ility of hea!ing the unit% The unit 1ill
report to the high po1ere! co""ittee ti"e to ti"e%
)!" Incororation of 4n(ironmental %isk in 2%*:
S9(B. has a!opte! 5E' +ui!elines as per DF(' $ircular >o%4 !ate! pril :4 2011
issue! fro" of Financial (nstitutions an! 'ar,ets of Bangla!esh Ban,% S9(B. shall co"ply
1ith the stipulate! in the !etaile! gui!elines on 5nviron"ental Eis, 'anage"ent C5E'D in
consi!eration of a part of the +reen Ban,ing Policy% The Ban, has alrea!y
incorporate! 5nviron"ental an! $li"ate $hange Eis, as part of the e0isting cre!it ris,
"etho!ology C$E+D a!opte! to assess a prospective )orro1er% This 1ill inclu!e integrating
environ"ental ris,s in the chec,lists4 au!it gui!elines an! reporting for"ats% ll of this 1ill
help "ainstrea" 5nviron"ental Eis, that cover possi)le of 5nviron"ental Eis, such as
.an! use4 $li"ate change relate! events Ccyclone4 !roughtD4 ani"al !iseases&pathogens such
as avian influen8a4 soli! 1aste inclu!ing 1aste fee!4 ani"al 1aste4 carcasses4 se!i"ents4
Page 2A
1aste1ater !ischarges4 ha8ar!ous4 "aterials4 etc 1ill )e revie1e! un!er 5nviron"ental Due
Diligence C5DDD chec,lists%
)!# Initiating In=house 4n(ironment *anagement:
S9(B. shall prepare an inventory of the consu"ption of 1ater4 paper4 electricity4 energy etc%
)y its offices an! )ranches in !ifferent places% Then it 1ill ta,e "easures to save electricity4
1ater an! paper consu"ption% F+reen 6ffice +ui!eF or at least a set of general instructions
1ill )e circulate! to the e"ployees for efficient use of electricity4 1ater4 paper an! reuse of
e;uip"entGs%
)!& Green $ffice Guide:
The gui!e co"prises of the follo;ing instructions:
(n place of relying on printe! !ocu"ents4 online co""unication 1ill )e e0tensively
use! C1here possi)leD for office "anage"ent to re!uce use of paper along-
1ith "a,ing unnecessary !uplicates of sa"e !ocu"ent%
'a,e sure that the printers are !efaulte! to !uple0 for !ou)le-si!e printing to save
papers%
Ban, 1ill apply 5co-font in printing to re!uce use of in,4
#se scrap paper as notepa!s
voi! !isposa)le cups&glasses to )eco"e "ore eco-frien!ly%
(nstallation of energy efficient electronic e;uip"entGs
(nstallation of FPo1er save 'o!eF of co"puters an! ensuring shut!o1n of
co"puter 1hile not using an! leaving the office place%
5nsuring s1itching-off fans4 lights4 air coolers etc%4 1hile not using an! leaving the
office place that 1ill help re!ucing electricity consu"ption%
5nergy saving )ul)s shoul! replace nor"al )ul)s in )ranches&offices of the )an,s%
issues shoul! )e ta,en steps to save energy fro" corporate )usiness travel an!
5"ployees are encage! to avoi! using vehicle to re!uce gas an! petroleu"
consu"ption
'ini"u" utili8ation of electric )ul) in !ay-ti"e
'ini"u" utili8ation of $ !uring the rainy season an! 1inter%
voi!ing use of electric appliance !uring pea, S9(B.%
Leeping the te"perature level of $ not )elo1 20 !egree centigra!e%
voi!ing 1earing of coat-tie !uring su""er to lessen use of $%
5ncage clients of ta,e e-state"ents
5ncage the clients to use T' car!s instea! of $he;ue-Boo,s%
!vertising through electronic "e!ia avoi!ing the print 'e!ias%
Page 30
Tele-$onference an! Ji!eo conference shoul! )e arrange! to avoi! travels an!
re!uce use of fossil fuel%
Ee!uce 1astage of 1ater
Ee!uce 1astage of tissue papers%
)!' 2reation of 2limate %isk :und:
Ban, 1ill finance the econo"ic activities of the floo!4 cyclone an! !rought prone areas at
the regular profit rate 1ithout charging a!!itional ris, pre"iu"% Ho1ever4 )an,s 1ill
assess their environ"ental ris,s for financing the sectors in !ifferent areas for creating a
$li"ate $hange ris, Fun! 1ith the approval of the Boar! of Directors% This 1ill )e use!
in case of e"ergency% The )an, 1oul! ensure regular financing flo1s in these
vulnera)le areas an! sectors% The fun! coul! )e create! as part of )an,Fs $SE e0penses%
)!) Introducing Green *arketing:
+reen "ar,eting is the "ar,eting of pro!ucts that are presu"e! to )e environ"entally
safe% +reen "ar,eting incorporates a )oar! range of activities4 inclu!ing pro!uct
"o!ification4 changes to the pro!uction process4 pac,aging changes4 as 1ell as
"o!ifying a!vertising% (t refers to the process of pro!ucts an!&or services )ase! on
their environ"ental )enefits% Such a pro!uct or service "ay environ"entally frien!ly in
itself of pro!uce! an!&or pac,age! in an environ"entally frien!ly 1ay%
(% To "a,e a!vertise"ent through electronic "e!ia CEa!io4 TelevisionD
((% (n the a!vertise"ents clients 1oul! )e encage! to use T' car!s
instea! of che;ue )oo,s an! let the" ,no1 that is ho1 they are
protecting their environ"ent for their future generation%
(((% Through a!vertise"ent the clients 1ill )e encage! for the follo1ing
5-Ban,ing C5-Transaction4 5-State"entD
Tele-Ban,ing
6n-line Ban,ing
S9(B. +reen Finances
)!. $nline Banking:
S9(B. 1ill un!erta,e )an, transactions or paying )ills via the (nternet on a secure
1e)site that 1ill allo1 the custo"ers to "a,e !eposits4 1ith!ra1als an! pay )ills% S9(B.
Page 31
shall give "ore e"phasis to "a,e the easiest 1ay to help environ"ent )y eli"inating
paper 1aste4 saving gas an! car)on e"ission4 re!ucing printing costs an! postage
e0penses%
Phase =II:
)!< Sector Secific 4n(ironmental Policies:
The Ban, 1ill for"ulate strategies to !esign specific policies for !ifferent
environ"ental sensitive sectors such as griculture4 gri-)usiness CPoultry ? DairyD4
gro far"ing4 .eather CTanneryD4 Fisheries4 Te0tile an! pparels4 Eene1a)le
5nergy4 Pulp an! Paper4 Sugar an! !istilleries4 construction an! housing4 5ngineering
an! Basic 'etal4 $he"icals4 ru))er an! plastic in!ustry4 Hospital&$linic4 $he"ical
Tra!ing4 Bric, 'anufacturing4 Ship Brea,ing etc%
)!> Green Strategic Planning:
The Ban, 1ill !eter"ine green targets to )e attaine! through strategic planning% set of
chieva)le targets an! strategies 1ill )e !eter"ine! an! those 1ill )e !isclose! in the
annual report an! 1e)site for green financing an! in-house environ"ent "anage"ent%
For in-house environ"ent "anage"ent4 the target areas shoul! cover attaining energy
efficiency in the for" of the use of rene1a)le energy4 re!uction of electricity4 gas an!
petrol consu"ption4 re!uction of +reen House +as e"issions4 issuance or e-state"ents4
electronic )ill pay4 saving papers4 environ"ent frien!ly office )uil!ing etc% For green
financing4 the target areas shoul! cover re!ucing loans for certain environ"entally
har"ful activities4 attaining a particular percentage of environ"ental loans as
percentage of total4 intro!ucing eco-frien!ly financial pro!ucts etc%
)!? Imro(ed In=house en(ironment management:
Strategy of re-use4 re-cycling of "aterials an! e;uip"ents4 an! S9(B. re!uction an!
1aste "ini"i8ation strategy 1ill )e4 part of in-house environ"ent "anage"ent% Ban,s
1ill increasingly rely on virtual "eeting through the use of vi!eo conferencing in lieu of
physical travel 1hich 1ill help saving cost an! energy%
Page 32
)!"@ :ormulation of Bank0s secific en(ironmental risk
management lan and guidelines:
Ban, 1ill !evelop an! follo1 an! an environ"ental ris, "anage"ent "anual or
gui!elines in their assess"ent an! "onitoring of Pro-ects an! Bor,ing $apital
invest"ent% (n a!!ition to the co"pliance of national regulation4 the 1ill set
internationally accepte! higher environ"ental stan!ar!% (n this connection4 S9(B. 1ill
)e involve! in the +reen (nitiatives to )e ta,en )y a group of Ban,s%
)!"" %igorous rograms to educate clients
Business houses 1ill )e encage! an! influence! to co"ply 1ith the environ"ental
regulations an! un!erta,e resources efficient an! environ"ental activities% The Ban,
1ill intro!uce is progra" to e!ucate clients% $onsi!ering the responsi)ility of "a,ing
the clients 1ell a1are of issues the Ban, 1ill i"ple"ent the follo1ing progra"s:
'essages for protecting environ"ent in S9(B. all sorts of 'ar,eting an!
Pro"otional ctivities%
Focusing on environ"ental issues 1hile selecting invest"ent clients an!
co""unicates its i"portance )y setting 5nviron"ental Eis, as a !eci!ing factor%
'a,ing the )an,Fs 1e)site as an i"portant tool that 1e are !oing +reen
Ban,ing an! "a,ing S9(B. clients green as 1ell% The Be)site 1ill )e use! for
societal "ove"ent to1ar!s "ore social an! environ"ental responsi)ilities in the
financial sector%
(nviting clients in se"inar4 sy"posiu" an! other cele)ration progra" 1here
facts4 figures an! pictures 1ill )e e0hi)ite! regar!ing ho1 the environ"ent is
!eteriorating an! ho1 are activities can prevent those for S9(B. sustaina)ility%
Ban, 1ill pro"ote socially&environ"entally-geare! invest"ent clients )y
recogni8ing the" as their green clients%
Page 33
*I%PA% Branch at a Glance
S9(B. esta)lishe! its 23r!Branch in 'irpur-10 at 01-11-2001% The Branch is )an,ing
1ith various types of account hol!ers of !eposit accounts as 1ell as invest"ent accounts%
Be have a "entiona)le a"ount of SB(S4 HDS4 an! EDS invest"ent in our )ranch% Huge
nu")er of foreign !eposit accounts is also here%
'SS !eposits are also increasing !ay )y !ay% There are so"e value! invest"ent clients
1ho 1ant to get speciali8e! service% 6n the other han!4 the other Ban,s situate! in this
area li,e Dha,a Ban,4 #ttara Ban,4 Sonali Ban, etc% are offering various pro!ucts4
speciali8e! service 1ith a!vance! technology to attract the clients% (n such situation4 it is
the ti"e-nee! for our Branch to provi!e sufficient "anpo1er4 to up!ate !igital progra"s
? other logistics support in or!er to !eliver pro"pt ? up to !ate )an,ing service4 to
Page 34
re!uce untol! pressure of volu"inous 1or,s4 to achieve the targete! goal ? to survive in
the 21
st
century co"petition%
Bualitati(e I5T4%1I49 A5+ ans;er:
( too, a survey fro" 5"ployees in 'irpur )ranch4 the su""ery of that survey given
)ello1%
1
st
;uestion 1as Do Shahjalal Islami Bank Mirpur Br. Invest on Solar power
or Eligible for renewal power or any alternative power soure to save
environment!
ll the e"ployee give sa"e ans1er that they !o not have these type
invest"ent yet )ut S9(B. has%
2
n!
Nuestion 1as *Does Mirpur br. has any investment rate waiver for
environment saving "rojet!
Page 3<
Different e"ployees give !ifferent ans1er% This "ay cause the" not
practicing that "uch +reen Ban,ing function% n! another reason that
one of e"ployee of invest"ent !epart"ent tol! *they !o not get any
application that can fully satisfy *environ"ent saving pro-ect/% (f they get
any of this type application for invest"ent4 they 1oul! consi!er
invest"ent rate 1aiver as per rules of hea! )ranch%
3
r!
;uestion 1as Do you have any tree plantation programme!
This ti"e all e"ployee give si"ilar ans1er that they have this type
progra""e%
4
th
;uestion 1as Do you provi#e any training to your partners or buyers for
environment saving ativities!
'a0i"u" e"ployee tol! they !o not !irectly provi!e any training to
the" )ut they provi!e gui!eline an! "a,e sure that applicant got
certificates fro" *Depart"ent of 5nviron"ent/ of Bangla!esh%
<
th
Nuestion 1as Does this Br. $ave any poliy about %reen banking! =
ll the e"ployee ensure that The 'irpur )ranch have +reen Ban,ing
Policy%
:
th
Nuestion 1as *&hat steps are taken for saving papers as well as tress!
$ollective ans1er is *1e are trying to preserve our !ocu"ents in $D
other than har! copy% Printing in )oth si!e of a single page an! printing
in, ;uality al1ays econo"y "o!e or less color%/
7
th
Nuestion 1as *%ive me some information about S'IB( green banking
ativities/ $ollective ans1er is :-
iD Before investing any invest"ent to any in!ustry4 1e investigate 1hether these
re"ain any treat"ent plant or not
iiD Branch 1ise 1e al1ays preserve our !ocu"ents through $D%
iiiD Be no1 intro!uce! Ee"ittance car! to people
ivD Be are no1 encouraging people to use T' car!s an! T' service%
Page 3:
vD Be are con!ucting !ifferent se"inars for "a,e people a1are for using T'
car!s4 'o)ile )an,ing service4 (nternet services4 online )an,ing as 1ell as
+reen Ban,ing%
viD Be gave tree to our account hol!er as our tree plantation progra""e%
viiD Be are 1or,ing 1ith far"ers for helping the"%
viiiD 6ur entire tas, is acco"plishe! through net1or, an! fast%
i0D tea" investigates 1here the invertors !oing 1ell or not accor!ing to
invest"ent contract in regular )asis%
0D (nvesting on rene1a)le energy an! a!vising an! 1or,ing 1ith entrepreneur to
ensure green )an,ing%
0iD 'aintain all rules an! regulation that Bangla!esh Ban, !eclare! for +reen
Ban,ing%
@
th
Nuestion 1as *&oul# you please tell about some green baking ativities of
Mirpur Br%/
ns1er is *e"ployees of '(EP#E Branch are a!vice to "a,e a1are all
the clients a)out re!ucing +as consu"ption4 pollution an! other 1astage
of other resources% This )ranch no1 trying to increase T'4 'o)ile
)an,ing4 internet )an,ing services an! trying invest in environ"ent
frien!ly pro-ects%
A
th
Nuestion 1as *)uture "lanning for Mirpur Br. about green banking/
ns1er for these ;uestion is *>&/ or *it is su)-ect to hea! office or top
class officer/ "ainly this "ay not their sector )ut they tol! they have a
progra" to reach to 1: crore people of Bangla!esh% n! there 1ill )e no
nee! to have any )ranch service% ll the funtion 1ill )e !one )y using
internet or "o)ile fro" their o1n living place%
Final an! 10
h
Nuestion 1as *Some reommen#ation that ShahjalalIslami Bank lt#. an
#o for batter pratie of %reen Banking/
ns1er is :
I! Ban, shoul! esta)lish internal recycling syste" for recycling its
1astage%
Page 37
II! 5nsure the proper utili8ation of internal resources
%reen Banking performane of Mirpur Branh
Total >u")er of T' car! #ser of 'irpur )ranch 7<0
Total >u")er of 'o)ile Ban,ing service #ser <0
Total nu")er of clients of 'irpur clients 1<00
"ount of avg% !aily transaction of 'irpur )ranch 1<4004004000
"ount of avg% !aily transaction of 'irpur )r% By using T' car!s 14<04000
"ount of avg% !aily online transaction of 'irpur )ranch 14<04000
"ount of avg% !aily transaction of 'irpur )r% By using 'o)ile )an,ing <04000
"ount of invest"ent on gricultural sector 14<04004000
Page 3@
:indings
The report fin!ings a)out green )an,ing policy of 'irpur of S9(B. an! S9(B. are given
)elo1:
"! )ig portion of 'irpur BranchGs invest"ent is investe! transport sectors4 1hich
is one of the "ain contri)utors to pollute Dha,a $ity ?'(EP#E Branch has a
great scope to !o green )an,ing%
#! They have very lo1 perfor"ance in T' service4 online service4 an! internet
service
&! % 'a0i"u" nu")ers of 5"ployees are not a1are a)out +reen Ban,ing%
'! 'irpur BranchGs a large portion goes to )ric, fiel! an! the )ranch incu")ent is
"otivate! to install Oig-Oag$hi"ne in their )ric, fiel!s% lso to create a1areness
a"ong the clients4 this )ranch organi8e! se"inar so"eti"es%
)! Before investing in any pro-ect they only consi!er on 1hat *Depart"ent of
5nviron"ent of Bangla!esh/ CD% gave certificate or not7 an! !o the
applicant have a!e;uate "ortgage property or not%
.! S9(B. are no1 offering stu!entGs accounts% That is a goo! i!ea )ut they -ust
offering "inor stu!ents an! guar!ian of those stu!ents are "ainly operating this
account% But S9(B. shoul! focus specially on Stu!ent not 'inor% Because they
are no1 "ost a!vance an! using a!vance technology
Page 3A
%ecommendation
Ban, shoul! ,eep follo1ing aspects in "in! 1hile financing any pro-ects:

1% naly8ing the pro-ect in ter"s of scale4 nature an! the "agnitu!e of
environ"ental i"pact% The pro-ect shoul! )e evaluate! on the )asis of potential
negative an! positive environ"ental effects an! then co"pare! 1ith the
P1ithout pro-ect situationG% There shoul! )e an 5nviron"ental ("pact
ssess"ent C5(D of each pro-ect reco""en!ing the "easures nee!e! to
prevent4 "ini"i8e an! "itigate the environ"ental negative i"pact )efore
financing the pro-ects%
2% Bhile investing or fun!ing the pro-ects4 the financial institutions shoul! assess
the sensitive issues li,e vulnera)le groups7 involuntary !isplace"ent etc an!
pro-ects shoul! )e evaluate! in ter"s of environ"entally i"portant areas
inclu!ing 1etlan!s4 forests4 grasslan!s an! other natural ha)itats%
3% Ban,ing institutions nee! to evaluate the value of real property an! the
potential environ"ental lia)ility associate! 1ith the real property% Therefore4
the )an,s shoul! have right to inspect the property or to have an environ"ental
au!it perfor"e! through the life of the loan%
4% Ban,s also nee! to "onitor post transaction for the i!eal environ"ental ris,
"anage"ent progra" CEutherfor!4 1AA4D !uring the pro-ect i"ple"entation
an! operation% There shoul! )e physical inspections of pro!uction4 resources4
training an! support4 environ"ental lia)ility4 au!it progra"s etc%
<% The ne0t roun! of evaluation inclu!es loan structuring4 cre!it approval4 an!
cre!it revie1 an! loan "anage"ent% Further )an,s have annual au!its4
;uarterly environ"ental co"pliance certificate fro" the in!epen!ent thir! party
an! also fro" the govern"ent

Further the )an,s can intro!uce green )an, loans an! pro!ucts li,e:

i% (nvesting in environ"ental pro-ects Crecycling4 far"ing4 technology4 1aste4 etcD
for e0a"ple re!uce!-rate of interest on loans to ho"eo1ners 1ho install a
solar energy syste"
ii% Provi!ing option for custo"ers to invest in environ"entally frien!ly )an,ing
pro!ucts
Page 40
iii% (nvesting in resources that co")ine ecological concerns an! social concerns
2onclusion
There is a gro1ing a1areness a"ong )an,s an! financial institutions to protect the
Page 41
environ"ent an! there)y save F"other planetF% Big )an,s are co""itting large fun!s on a
sustaina)le )asis in responsi)le )an,ing4 creating "ore values for our ne0t generation%
They are shifting for1ar! fro" FprofitF to FpeopleF an! no1 "ore i"portantly4 to create a
)etter future for all% The sooner this philosophy of Fgreen )an,ingF is e")race!4 the )etter
it is for all%
goo! online )an,ing syste" is the linchpin of re!uce! costs4 i"prove! perfor"ance
an! co"petitiveness% Be provi!e the service at no cost to our retail an! )usiness
custo"ers% The logical progression of online )an,ing - converting e0isting custo"ers to
online )ill pay"ent - is a har!er step an! can re;uire a lot of leg1or,% 6nce custo"ers
get here4 there is the chance of "oving to co"pletely electronic )an,ing%
The positive outco"es of these green initiatives are evi!ent in "any instances% Ho1ever4
these are the results of collective efforts% There is no !ou)t that the progress so far has
)een "a!e possi)le )ecause of the su)stantial efforts of all sta,ehol!ers4 covering )an,s4
policy "a,ers4 civil society organi8ations4 international !evelop"ent an! financial
institutions4 )usiness entities an! the co""on people Cconsu"ersD%
%4:4%4524S
4=Books:
Page 42
"! E%>% Dash4 200@4 *Sustaina)le P+reenG Ban,ing: The Story of Trio!os Ban,/
vaila)le at: 111%scri)!%co"&!oc&373@@173&Sustaina)le-+reen-Ban,ing
#! 9an Bille" van +el!er4 C200:D4 *Sustaina)le Ban,ing in Practice: closer loo, at
the no"inees for the 200: Financial Ti"es Sustaina)le Ban,ing 1ar!s/4
Ban,trac,%4Profun!o%
vaila)le at: 111%acc"an%in&i"ages&-11&+reenQBan,ingQ C2D%!oc
&! 9euc,en4 ' C2001D *Sustaina)le Finance an! Ban,ing4 The finance Sector an!
The Future of the Planet/% .on!on4 5arthscan%
vaila)le at: 111%acc"an%in&i"ages&-11&+reenQBan,ingQQC2D%!oc
'! Prava,arSahoo4 Bi)hu Prasa! >aya,4 200@4 +reen Ban,ing in (n!ia
vaila)le at: teriin%aca!e"ia%e!u&)i)huprasa!naya,&%%%&+reenQBan,ingQinQ(n!ia
)! Dr% L%% +oyal an! Ji-ay 9oshi4 20114 ST#DM 6F S6$(. >D 5TH($.
(SS#5S (> B>L(>+
(>D#STEM
vaila)le at: 111%i-eronline%co"&%%%&JolR202R20issueR20<&i-er2011020<S6C<D
.! +reen4 $%F% C1A@AD% Business 5thics in Ban,ing% 9ournal of Business 5thics @C@D
p% :31-:34%
vaila)le at: 111%aca!e"ic-ournals%org&9B'&PDF&p!f2011&1@9an&Safa,li%p!f
<! #>5P Finance (nitiatives4 20024 Financial (nstitution (nitiative Signatories4
vaila)le at/ http:&unepfi%net&fii&signatoriesQcountry%ht"
Be) lin,s:
i! http:&&en%1i,ipe!ia%org&1i,i&5thicalQ)an,ing
ii! http:&&en%1i,ipe!ia%org&1i,i&5thicalQ)an,ing
iii! http:&&111%+reen)an,reports%co"
i(! http:&&111%Bangla!esh-)an,%org&green)an,ingor!er
(! http:&&green)an,report%co"&eco-frien!ly-)an,ing&1hat-is-green-)an,ing&
(i! http:&&111%the!ailystar%net&ne1Design&ne1s-!etails%phpSni!T14A:7:
(ii! http:&&111%accountingtools%co"&!ictionary-re"ote-!eposit-capt
(iii! http:&&111%investope!ia%co"&ter"s&o&online)an,ing%asp
i3! htpp:&&111%))%org%)!&"e!iaroo"&circulars&)rp!&-an302011)rp!01e%p!f
3! http:&&111%))%org%)!&"e!iaroo"&circulars&)rp!&fe)272011)rp!02e%p!f
3i! http:&&111%)an,tech%co" 7 an! so on2
3ii! http:&&111%the!ailystar%net&ne1Design&latestQne1s%phpSni!T32:72
3iii! http:&&111%thefinanciale0press-!%co"&"ore%phpSpageT!etailQne1s?!ateT2012-
02-07?ne1sQi!TA72:3
Page 43
Acronyms or Abbre(iations
DB : sian Develop"ent Ban,
$6
2
: $ar)on !io0i!e
55 : 5nergy 5fficiency
+ovt : +overn"ent
((DF$ : (n!ustrial an! (nfrastructure Develop"ent Finance $o"pany .t!
(F$ : (nternational Finance $orporation Cof the Borl! Ban, +roupD
S'5 : S"all an! 'e!iu" 5nterprises
#>DP : #nite! >ations Develop"ent Progra""e
BB : Borl! Ban,
55 : 5nergy 5fficiency
+5F : +reenhouse +ases
((DF$ : (n!ustrial an! (nfrastructure Develop"ent Finance $o"pany .t!
(F$ : (nternational Finance $orporation Cof the Borl! Ban, +roupD
E55E : Eeal 5ffective 50change Eate
#>DP : #nite! >ations Develop"ent Progra""e
Page 44