RELEVANCE OF GREEN BANKING IN

SUSTAINABLE DEVELOPMENT OF
INDIA

PROJECT REPORT

Submitted by
SILPA P S
SNT18MBA26

Under the guidance of

Dr. SUMA S R

HOD MBA

in partial fulfilment of the requirements

for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

of

A P J Abdul Kalam Technological University

SNIT BUSINESS SCHOOL

SREE NARAYANA INSTITUTE OF TECHNOLOGY

(SNIT) ADOOR
JUNE 2020
 i

DECLARATION

I undersigned, hereby declare that the project titled “RELEVANCE OF GREEN BANKING IN
SUSTAINABLE DEVELOPMENT OF INDIA” submitted in partial fulfillment for the award of
Degree of Master of Business Administration of A P J Abdul Kalam Technological University is
a bonafide record of work done by me under the guidance of Dr. SUMA S R, HOD,
DEPARTMENT OF MBA, SNIT BUSINESS SCHOOL, ADOOR .This report has not previously
formed the basis for the award of any degree, diploma or similar title of any University.

DATE: SILPA P S
 SNITADOOR
SREE NARAYANA INSTITUTE OF TECHNOLOGY
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DEPARTMENT OF MANAGEMENT STUDIES

SREE NARAYANA INSTITUTE OF
TECHNOLOGY
ADOOR

CERTIFICATE

This is to certify that the report titled “RELEVANCE OF GREEN BANKING IN

SUSTAINABLE DEVELOPMENT OF INDIA,” being submitted by SILPA P S,
SNT18MBA26, in partial fulfillment of the requirements for the award of the Degree of
Master of Business Administration is a bonafide record of the project work done by SILPA P
S of Department of Management Studies, Sree Narayana Institute of Technology, Adoor.

Dr. SUMA S R Prof. (Dr) KESHAV MOHAN

HOD, MBA Director, MBA
 ii

ACKNOWLEDGEMENT

This project was successfully completed and made possible due to the cooperation, assistance and
suggestion of many persons to whom I would like to express my sincere gratitude and thanks.

First of all, I thank the omnipotent one, the heaven above the light he instilled in me, for the grace
and will that I am here. This space wouldn’t be enough to extend my warm gratitude towards my
project guide Dr. SUMA S.R, HOD, Department of Management Studies, SREE NARAYANA
INSTITUTE OF TECHNOLOGY, ADOOR, for her efforts in coordinating with my work and
guiding in right direction.
I thank the people, who help me in completing the survey and at last, but not the least sincere
thanks to my family membersand friends without whose love and encouragement this would not
have been a reality.

SILPA P S
 LIST OF TABLES

TABLE NO. TITLE OF THE TABLE PAGE NO.

3.1 Publication dates of green banking adopted in Indian banks 28

5.1 Gender of Respondents 44

5.2 Age of the Respondents 45

5.3 Qualification of the Respondents 46

5.4 Designation of the respondents 47

5.5 Work Experience of the respondents 48

5.6 Banks in which the respondents work 49

5.7 Banks are using green system in their operations 50

5.8 Bank took any initiative to become a green bank 51

5.9 Initiatives taken by banks to become a green bank 52

5.10 Calculation of mean and standard deviation 52

5.11 Bank faced any challenges in implementing Green Banking 53

Initiatives
5.12 Challenges in implementing Green Banking Initiatives 54

5.13 Calculation of mean and standard deviation 54

5.14 Bank taking active participation in educating customers about 55

green banking
5.15 Green banking is important for sustainable development 56

5.16 Banks are actively organizing awareness campaigns to educate 57

stakeholders on role of green banking for the sustainable
development
5.17 Bank provides training and education to the staff on 58
environmental protection

5.18 Bank uses e-waste management practices 59

5.19 Bank provides loan to environmental protection and 60

energy saving projects

5.20 Bank involves in setting up green branches 61

 LIST OF FIGURES

FIG. NO. TITLE OF THE FIGURE PAGE NO.

5.1 Gender of Respondents 44

5.2 Age of the Respondents 45

5.3 Qualification of the respondents 46

5.4 Designation of the respondent 47

5.5 Work Experience of the respondents 48

5.6 Banks in which the respondents work 49

5.7 Banks are using green system in their operations 50

5.8 Bank took any initiative to become a green bank 51

5.9 Bank faced any challenges in implementing Green Banking 52

Initiatives

5.10 Bank taking active participation in educating customers about 55

green banking

5.11 Green banking is important for sustainable development 56

5.12 Banks are actively organizing awareness campaigns to educate 57

stakeholders on role of green banking for the sustainable
development

5.13 Bank provides training and education to the staff on 58

environmental protection

5.14 Bank uses e-waste management practices 59

5.15 Bank provides loan to environmental protection and energy 60

saving projects

5.16 Bank involves in setting up green branches 61

 TABLE OF CONTENT

SL NO. TOPICS PAGE NO:

1 INTRODUCTION 1-4
1.1 Background of the study 1
1.2 Need and Significance of the study 2
1.3 Statement of the problem 2
1.4 Objectives of the study 3
1.5 Scope of the study 3
1.6 Limitations of the study 3
1.7 Organization of the report 4
2 LITERATURE REVIEW 5-19
2.1 Review of literature 5
3 THEORETICAL FRAMEWORK 20-39
3.1 Introduction 20
3.2 Green Banking 21
3.3 Benefits of Green Banking 22
3.4 Methods of Adopting Green Banking 22
3.5 Green Banking Products and Services 24
3.6 Green Banking in India 26
3.7 Green Banking Initiatives in India 27
3.8 Challenges of Green Banking in India 39
4 RESEARCH METHODOLOGY 40-43
4.1 Objectives 40
4.2 Hypothesis 40
4.3 Research Design 40
4.4 Sources of Data 40
4.5 Primary and Secondary data 40

4.6 Population 41
4.7 Sample Design 41
4.8 Sampling method 41

4.9 Method of data collection 41

4.10 Drafting a questionnaire 41

4.11 Pilot survey (Reliability and Validity of the instrument) 42

4.12 Statistical Analysis 42

5 DATA ANALYSIS 44-61

5.1 Data Analysis and Interpretation 44

6 FINDINGS 62-63
7 RECOMMENDATIONS 64

8 CONCLUSION 65
REFERENCES
APPENDIX
 CHAPTER 1
INTRODUCTION
RELEVANCE OF GREEN BANKING IN SUSTAINABLE DEVELOPMENT OF INDIA

1.1 BACKGROUND OF THE STUDY

Now a days, sustainable development and preservation of environment are recognized

globally and for this main focus is on reducing the demand of fossil fuels by implementing
the 3 R‟s viz. Reduce, Reuse and Recycle. Many research studies have also pointed out that
increase in carbon emissions and reckless development without paying attention to
environment can be a reason of occurrence of natural disasters. All over the world,
institutions are concerned about the overall impact of depletion of environment. Banks and
financial institutions are also playing a major role in optimizing or reducing carbon
footprints.

Green Banking is also a part of India’s mission of “Go Green” and plays an active role to
take environmental and ecological aspects as part of their lending principle. Green banking is
comparatively a new development in the financial world. Green banking means promoting
environmental friendly practices and reducing carbon footprint from banking activities. It is a
form of banking taking into account the social and environmental impacts and its main
motive is to protect and preserve environment.

Banking sector is one of the major sources of financing investment for commercial
projects which is one of the most important economic activities for economic growth.
Therefore, banking sector can play a crucial role in promoting environmentally sustainable
and socially responsible investment (SRI). Banks may not be the polluters themselves but
they will probably have a banking relationship with some companies/investment projects that
are polluters or could be in future.

Encouraging environmentally responsible investments and prudent lending should be one

of the responsibilities of the banking sector. Further, those industries which have already
become green and those, which are making serious attempts to grow green, should be
accorded priority to lending by the banks. This method of finance can be called as “Green
Banking”, an effort by the banks to make the industries grow green and in the process restore
the natural environment. This concept of “Green Banking” will be mutually beneficial to the
banks, industries and the economy. Not only “Green Banking” will ensure the greening of the
industries but it will also facilitate in improving the asset quality of the banks in future.

This project compiles the relevance of Green Banking in sustainable development and also
explains how Indian Banks are initiating themselves to enter in Green concept.

SREE NARAYANA INSTITUTE OF TECHNOLOGY, ADOOR 1|P age

1.2 NEED AND SIGNIFICANCE OF THE STUDY

Green Banking is a term referring to practices and guidelines that make banks
sustainable in economic, environment, and social dimensions. It aims to make banking
processes and the use of IT and physical infrastructure as efficient and effective as possible,
with zero or minimal impact on the environment.

Banks affect the environment indirectly by financing intermediaries who are the
major source of long term funding to various industries that pollute the environment heavily.
Hence, it is imperative to understand the need for sustainable practices for banking. Foreign
countries have understood the need of green banking and creating many opportunities in their
country to develop this but in India, the concept of green banking is catching up and banks
are actively looking for ways to portray themselves as a Green Bank. So need is to create new
strategies to develop Green banking in India and aware the public about the need and
importance of green banking.

As environmental sustainability is an important issue and green banking is a step in this

regard. Hence, there is a need to study the green banking initiative taken by the banking
sectors and also to review the role of green banking in environment sustainability.

1.3 STATEMENT OF THE PROBLEM

Banks can play a major and decisive role in the global efforts to make the planet a
better place to live in. As major implementers of technology, banks themselves can adopt
green practices and thereby lead the way in this global initiative. Product innovation and
leveraging on the use of technology enable the banks and their customers today to reduce the
usage of resources such as paper, thereby aiding in environmental protection. Reserve Bank
of India provides a lot of guidelines for making the banks green for environmental
sustainability and environmental protection. As providers of finance, banks can ensure that
businesses adopt environment-friendly practices. Green banking is considered one of the
tools of ensuring sustainable development where economic activity will not have any
negative impact on the environment. Green banking is all about going beyond to keep the
world liveable without any significant damage.

Banks in India are playing a vital role towards sustainable development by

introducing various green banking practices. Adoption of these green banking practices by
the customers will result savings of energy, fuel, paper and other natural resources. During
their day to day
business banks heavily contributes towards the carbon emission in terms of use of paper,
electricity, stationary, lighting, air conditioning, electronic equipment, etc. even though this is
moderate compared to other carbon sensitive industries like steel, oil and gas, etc. In the case
of banks, the direct interface with the environment has considerably increased due to rapid
growth of the banking industry. Being a major source of fund provider, banks can play a
crucial role in ensuring environmentally sustainable and socially responsible investments in
the economy. It is at the interest of the banks to practice green banking and thereby avoiding
the aforesaid risks involved in the banking sector. Thus, now a days, banks are gradually
coming to realize that there is an immediate need for a shift from „profit, profit and profit‟
motive to
„planet, people and profit orientation‟ for sustainable development in the long-run.

1.4 OBJECTIVE OF THE STUDY

 To understand the relevance of Green Banking in sustainable development of India.

 To know about the initiatives taken by Indian banks to make them Green Bank.
 To find out the challenges in implementation of green banking in India.

1.5 SCOPE OF THE STUDY

This study aims to analyse the relevance of green banking in sustainable development of
India Green banking make our environment human friendly and enrich our economic
productivity. Banks as the financing agent of the economic and developmental activities have
an important role in promoting overall sustainable development. This study also focuses to
identify the challenges in implementation of green banking in India.

1.6 LIMITATIONS OF THE STUDY

 Time was major constraint of the work

 Lack of experience
 The non-availability of uploaded secondary data was another serious limitation.
 During the research methodology process/time, it was difficult to collect information
from the bank employees because of the busy schedule for their work.
  There was scope of biased response, respondents could be biased regarding opinions
towards certain factors while answering the Questionnaire.

1.7 ORGANISATION OF THE REPORT

 Chapter one introduction deals with the background of the study, Problem statement,
Need and Significance of the study, Scope of the study, Objectives of the study,
Limitations of the study.
 Chapter two literature review deals with identify and reviews previous and relevant
work done on the topic.
 Chapter three theoretical framework deals with review of theories related to the topic.
 Chapter four research methodology deals with Objectives, Hypothesis, Research
Design, Sources of data, Primary data, secondary data, Population, Sample design,
sample size, Sampling method, Method of data collection, Drafting a questionnaire,
Pilot survey, Data Analysis techniques.
 Chapter five data analysis deals with data analysis and interpretation.
 Chapter six findings
 Chapter seven recommendations
 Chapter eight conclusion
 CHAPTER 2
REVIEW OF LITERATURE
RELEVANCE OF GREEN BANKING IN SUSTAINABLE DEVELOPMENT OF INDIA

2.1 LITERATURE REVIEW

Mankind is having the knowledge that the incremental emission of carbon and rapid scale
development without consideration of the environmental concerns are leading to the change
in climate. There are several studies which claimed the relationship between the natural
calamities and change occurring in climate because of the disregarding the environmental
sustainability. Banks affect the environment indirectly by financing intermediaries who are
the major source of long term funding to various industries that pollute the environment
heavily. In this regard, a new concept of Green Banking was coined, which considers the
ecological perspectives of banking.

Green banking services helps the banks towards the sustainable developments of the India. In
this context many authors expressed their opinions on the previous and recent developments
and trends in the banking sector relating to the green banking.

 Biswas (2011) presented a conceptual approach of green banking and sustainability.

Main benefits, challenges of green banking were covered. Benefits like Green account
openings giving cash backs, free online payments, online form filling, e-statements were
described. Considering the challenges, the bank will face high operation cost and
expenses to follow green banking, diversifying the client base to eligibility criteria like
only environment friendly projects will be considered. It was concluded, that “Equator
Principle” need to be signed by Indian banks and yet not much activeness is witnessed
in India.

 Bahl (2012) highlights the means of creating awareness about Green Banking to ensure
sustainable growth. Garrett’s ranking technique is used to analyse the most significant
strategies in respect of Green Banking. If the goal is to attain sustainable development
this can be achieved only through creating awareness and imparting education. Among
the internal sub systems emphasis should be given to publications, newsletters so as to
create awareness and effective means for external sub systems are event meetings,
media and websites. A proper formulated green policy guideline is needed for effective
Green Banking.

 Verma (2012) analysed the evolution of green banking concepts in Indian banking and
its developments in Indian banks. The study was divided in two parts, one studied the
SREE NARAYANA INSTITUTE OF TECHNOLOGY, ADOOR 5|P ag e
RELEVANCE OF GREEN BANKING IN SUSTAINABLE DEVELOPMENT OF INDIA

growth of green banking among banks and other studied the awareness about the
activities

SREE NARAYANA INSTITUTE OF TECHNOLOGY, ADOOR 6|P ag e

 done by selected banks at Jaipur. He concluded that only few of Indian banks have
adopted green banking and financed some of green banking based projects. There is
negligible awareness of green banking.

 Sweta et al. (2012) explored concept of green financial products. They did survey to at
Mumbai identify the awareness and attitude of user and customer for green financial
products. This gave them idea about the probable demand related to these products.
Bankers’ opinion was also taken about the green products via questionnaire. Key
findings from the Banker’s end revealed that, they have introduced such green funds for
reputation, green home loans are more popular and tax incentive is the prime tool to
promote the green products. As per view of Customers, majority were aware about
green home loans, they prefer to go for green products if there are monetary benefits. It
was concluded that, financial institutions and banks have an important role to play by
backing to the creation fruitful low carbon economy.

 Jinwala (2013) described the importance of Green Banking, highlighted international

experiences. He derived the conclusion that there has not been much initiative by the
banks and other financial institutions in India and so he suggested possible policy
measures to promote green banking in India.

 Jha and Bhome (2013) highlighted the ways to Go Green through ‘Green Banking’.
They tried to know the concept of green banking, identified the ways to adopt it, its
awareness amongst general Bank customers and bankers and finally to create its
awareness. The Data on Green Banking was collected through interview and
questionnaire. They found the positive development of green banking approach.

 Karunakaran (2014) described new area of -types of banking risks mitigated by Green
Banking and steps to be undertaken for applying green banking. He found that there has
not been much inventiveness in this regard by the banks and other financial institutions
in India, though they play an active role in India’s developing economy. More than 100
countries have incorporated the equator principle. So, this principle has become a
 common standard of project finance. None of banks or financial institutions has adopted
equator principle even for the sake of records.

 Singhal, Singhal & Arya (June 2014) in their paper entitled Green Banking: An
Overview studied, how bank can go greener. According to study banking industries and
financial institution plays a very important role in the growth of an earth. Green banking
saves the energy and environment both. Now a day’s many bank offering green product
like ATM, Green credit cards, green CDs, electronic fund transfer, use of solar and wind
energy etc. but still it’s not completed. We have to make more efforts so we can save
environment and green banking is one of the best way to start this.

 Khedekar (2014) in her research entitled banking with Technology- Green Banking
studied the various technology used by the banking industries to make the environment
green. According to study bank should provide basic plus premium internet banking
product such as opening bank account, Demat holding, standing instruction, investment
etc. This Study suggests that bank should conduct seminar and conference to educate the
public regarding the uses of internet banking as well as security issue. She suggests
“Virtual Banking” where customer can’t deal in cash to those branches which are far
from the main branch.

 Malu, Agrawal, & Jajoo (2014) studied that banks can play an important role in
reducing the carbon footprint in the society. Earlier economic development means
reducing poverty, inequality and unemployment in the society, but the concept of
Economic development had changed to Sustainable development which means
development that meets the needs of the present without compromising the ability of
future generation to meet their own needs (World Commission Environment and
Development 1987).The study suggested that sustainability in the banking sector can
take two forms-
Recycling programs, paperless banking, using energy efficient resources, and support
for community events for reducing pollution and so on.
They can adopt lending and investment strategies to promote environmentally
responsible projects and can also develop green products to ensure the sustainability in
their core business.
 Jaggi (2014) studies the initiative by SBI and ICICI on Green Banking. SBI has
introduced a Green Channel Counter, no queue banking, enhanced commitment towards
achieving carbon neutrality, online money transfer, wind farms. Green Products and
Services initiative of ICICI Bank includes instabanking (anytime, anywhere), vehicle
finance and home finance. Moreover these banks have taken other steps for energy
conservation like duplexing (two side printing), recycling, CFLs, carpool etc.

 Nath, Nayak (2014) attempt to study the green rating standard given by RBI, the World
Bank’s environmental and social norms and the initiative taken by bank in adopting
green practices. They also list strategies for adopting Green Banking. Green Rating
Standard is known as Green Coin Rating. Under this banks are evaluated on the basis of
carbon emissions and amount of recycling activities. World Bank has formed
environmental and social norms for financial institution. These norms provide ways to
reduce environmental impact. Banks are required to do Environmental Impact
Assessment, Annual Reporting and adopt sustainable technology. The researchers study
and list the initiative taken in respect of environment by different banks in India. If the
Indian banks want to achieve some position in global economy then they have to act as
good corporate citizens.

 Chaurasia (2014) attempted to highlight the major benefits, confronting Challenges,

strategic aspects of Green Banking and also presented the status of Indian banks as far
as Green Banking adoption is concerned. He found that there has not been much
initiative in this regard by the banks in India. He managed to cover a new area of ways
to reduce carbon foot print.

 Sudhalakshmi and Chinnadorai (2014) explained the environmental management by

Indian banks. The covered the subjective issues of green banking and their main
findings from the secondary study includes that green banking is proactive idea, Paper
work is reduced leading to decrease in tree cutting, green bank should consider natural
resource conservation, many corporations are pursuing green programs.

 Sreesha (2014) identified the green banking initiatives adopted by public and private
sector banks. The guidelines of RBI for green banking was also focused that includes,
that
 banks should make its products and services green, later the banks should go for green
infrastructure. Nearby 50 ways were given to adopt green banking that includes paper
less statements, Green companies investments, Assimilating Trees in Infrastructure,
Online Payments, Green Loans, Caring landscape during construction, Carbon credit
business, use of solar power, Recycling etc. It was concluded form the study that Public
sector banks are more into implementation of concept of green banking.

 Packialakshmi and Ramesh (2014) analysed the green banking concept, benefits,
challenges, and methods on the basis of secondary information. They suggested
rationale of green banking. As per their opinion, green banking is mission oriented tasks
as the deposits done by customers will be used in eco-friendly things, it will be assured
by them, banks can reduce pollution, credit risk of unethical practices, increase green
plantation, improves credibility of employees, increase productivity, awareness of
healthy things, better CAMEL rating as well. It was concluded that with immense
benefits it will be bonus to Industries, Economy, and Banks.

 Rajesh and Dileep (2014) have given the conceptual overview about how the green
initiatives will help in sustainable economic development. They highlighted various
activities by different banks, and provides a view that, various tools/ methods should be
focused by banks for moving further.

 Rajput et al. (2014) gave the green banking scenario in India. For their study they
considered primary and secondary data to analyse the views of Delhi based bankers on
environment responsibilities and the framework for adoption of green banking. They
found that few Indian banks have only recognized the importance of the green banking
and still the activeness on the issue is missing. They quoted that only Yes bank and
Infrastructure finance & leasing corporation were the two signatories of United Nations
Environmental Program- Finance Initiative (UNEP- Fin. 2014). They determined that
RRBs have accommodated the concept more rapidly and contributed effectively in
green banking activities. At the end, they were of the view that RBI policy should be
clearer for the concept and training about the same should be imparted.
 Sharma et al. (2014) studied consumer awareness regarding green banking concept and
green banking services - initiatives taken by various Public and Private sector banks in
India, Mumbai. And obstacles faced by consumers in availing green Banking services.
They found from their research that green initiatives like Communication through Press,
Bank environmental policy, Concession on energy savings, Solar ATMs, Green CDs is
not familiar in Green initiatives by the bank as per the respondents. Still Indian banks
have not accepted the principle equator policy to keep a record of their clients.

 Krishna and Srinivas (2014) has done primary study on the customer’s perception
towards green banking. They included parameters like factors considered while going
for green banking, mode of green banking, Satisfaction towards services and problems
related to green banking. Opinion of customers related to these parameters were taken
and the major findings include that major customers were satisfied and were aware
about Internet banking, Busy server is the most important problem they perceive.
Promotion related to Green banking is needed, they concluded.

 Sunmista and Sathana (2014) has done empirical study on attitude of the bank
employees towards the green banking initiatives of five Public sector commercial banks
in India. Their study revealed that attitude of the bank employees towards green banking
initiatives of the commercial banks differ with regard to their age factor. Other
demographic variables like qualification, Income, Family size etc. has no influence on
the attitude. It was concluded, employees are having positive attitude towards the green
banking initiatives of their banks considering the mean score value more than 3. They
were of the opinion from the study that, Banks were taking green initiatives and should
continue the same by creating Green buildings, follow Environmental standards.

 Ragupathi. M and Sujatha .S (2015) in their paper entitled Green Banking Initiatives
of Commercial Banks in India, studied the way to go green through green banking.
According to this paper, earlier bank was not aware about the concept green banking.
But now a day’s banks are playing very important role in environment sustainability
program. By the green banking practice people is getting more aware about the global
warming and each business man's contributing in environment sustainability to make
this earth a better
 place to live in. Green banking is not only greening the industries but it will also
facilitate in improving the assets quality of the bank in future.

 Ahuja (2015) gave an overview of literature review about green banking, for making
the conceptual framework. She identified problems in the execution of the green
concept, where from her review, she identified customer education and awareness is
biggest concern and Private sector banks are able to implement the concept in a better
way. Later she explores the green initiatives by SBI to describe green banking.

 Zhelyazkova and Kitanov (2015) have attempted to create a green banking business
model on the basis of the conceptual understand of green banking and its scope. They
highlighted that, in various parts of the world from past 10 years, many definitions for
the concept was coined, but still no precision in that was achieved. The described the
green banking is need for the banking, as bank is active economic transaction for earning
money, while they think such green products lessens down their margin and so they are
less motivated to initiate. Considering the scope of green banking, they were of the view
that mere green products is not part of green banking, but environmental pointers in the
risk valuation and management –control system is accommodated.

The Business Model proposed by them incorporates steps: First they suggest banks to
develop green products and give more interest to make it attractive that will lead to fund
receipts, which again can be given to companies for doing green activities, so problem is
if there is higher interest rate on deposit, banks can compensate by keeping high rate in
green loans, funds collected from this, should be used for giving more green loans. They
concluded that green banking is getting more consideration and first ones to adopt will
gain more market

 Susanto (2015) defined green banking as banking which considers 3 Ps – Profit, Planet
and People. It was focused that Electronic banking provides the support to improve
banks’ customer services. It was concluded that green banking implementation will
make banks more awake about the environment practices like saving paper, fuel,
transportation etc. It will also make customers to go for electronic banking.
 Ramila and Gurusamy (2015) have done analytical study based on secondary data.
They attempted to find the impact on profitability of the green initiatives like NEFT,
ECS, RTGS, POS, ATM and mobile banking. In that context they performed ANOVA
and it was found that ECS and ATM have more impact on the profitability of public
sector banks as compared to other initiatives for green banking.

 Ratnaparkhe and Ratnaparkhe (2015) have studied the conceptual foundation of

green banking, the initiatives taken by banks, green rating standards by RBI and ways to
adopt green banking. They highlighted strategies of green banking, wherein the key
point was that, banks adopting socially responsible lending and investing are altering the
process of traditional investment banking, bond underwriting, people are aware about
environmental concerns, so they should initiate the same for competitive advantage.
They concluded still there is long way to go for Indian Banks.

 Narang (2015) described the concept of green banking, the benefits, strategies, green
coin ratings and initiatives by public and private banks. The main strategies discussed in
the study includes, banks should engage with stakeholders and create awareness,
conduct energy audits, set SMART (Specific, Measurable, Attainable, Realistic, and
Timely ) green goals, green policy publication & execution and lastly monitoring the
progress regularly. It was concluded that RBI should frame a clear green policy and
bank should adopt a strategic plan for green banking.

 Tara et al. (2015) focused on the relation of environment sustainability and green
banking. Described the stages of sustainable banking- Defensive, Preventive and
Offensive banking. They considered the case studies of ICICI and SBI for explaining
the current status of green banking and described the initiatives taken by them. Later the
laws and guidelines given by various world organizations were highlighted. It was
found, that Bank should consider the concern of sustainability as a morale duty and
should promote environmental friendly projects.

 Gupta (2015) analysed the secondary data and studied the SWOC analysis of green
banking activities. She collected data from SBI, PNB and ICICI bank branches of
Mandi
 district- Himachal Pradesh and gave an overview of their initiatives of green activities. It
was concluded that bankers have major role to play for environment sustainability. Bank
employees should be trained and oriented for green activities, should start investment in
low carbon activities.

 Sharifi and Hossein (2015) has studied the green banking as need for environmental
sustainability. They described the various initiatives by public sector banks regarding
green banking. SWOC analysis was performed on banking sector regarding green
banking. Personal interview of bankers was undertaken and their opinion regarding the
benefits of green banking was asked, it was found there has not been much initiatives,
but some of the prime advantages highlighted included reduction in transaction cost, risk
management, cost awareness etc.

 Hundal and Kumar (2015) has done survey of 100 UG and PG students of. Amritsar,
to know the preference of them towards environment friendly / Green products. They
considered seven factors like Desire, Trustworthiness, Preference, Ethical, Awareness,
initiative and Social welfare for factor analysis perception of consumers towards Green
Products. They determined the Cronbach's alpha to be 0.814 which is significant,
interpreting the reliability. They derived some subjective conclusions that, concept is
new, so it will need time for acceptance. People are less aware about the benefits of
green products, so green movement should be conducted. Another important concept of
Green Myopia is also developed as less costly products will be sold by other companies
compared to green products. Consumer don’t prefer costly green products it is great
concern.

 Sindhu (2015) studied the awareness and preference of the customers on the initiatives
taken by Banks. It was found majority of respondents were aware and preferred Internet
/ Mobile Banking and ATM. There also exist a significant association between locality
and customers’ awareness/ Preference. It was concluded that, still much more awareness
is required considering the green products amongst customers of Kerala, where majority
were highly qualified.
 Deka (2015) has done study on green banking initiatives for Assam. He focused on the
SBI green initiatives considering the secondary information. On the primary end,
customers of SBI were asked opinions about the green banking initiatives and its
adoption. It was found, majority of the respondents use ATMs, while 50% of the
respondents were aware about the green initiatives undertaken by bank. Online banking/
Mobile banking is not much preferred for usage, the reason is security issue. More than
50% customers believe that green banking leads to eco-friendly practices and it saves
time and cost. It was recommended from the study the more publications regarding
green banking and environmental impact should be done by bankers’ and Government
side.

 Kumar and Anand (2015) have done primary study on the customers end at Hyderabad
city for public sector banks. They identified the awareness and knowledge about green
initiatives taken by public banks. They also studied the impact of innovation on
adoption intention of green banking initiatives. Key findings form study reveals that
there is an association between innovation / Knowledge and adoption intention of green
banking. Even there exist association between innovation and knowledge. They
concluded that if the customers are innovative and possess knowledge, they are more
likely to adopt green banking, so banks and management should provide information of
green banking to educated segment with SMS, Mails etc.

 Miyagamwala (2015) has described the concept, mechanism, steps of green banking.
He considered primary survey as well, wherein the HDFC bank employees were
investigated about the green banking. It was found that natural conservation is very
important for green banking. Even corporations have started pursuing many green
programs, reduce wastage and attempted to increase profitability by going green.

 Rao (2015) described the perspectives of bankers and customers. He has done primary
study at Manipal on identifying the awareness of customers for the green banking, Ways
taken up by bankers to promote the concept. Bankers were also asked about the benefits
of green banking, usage of green products by customers. Major findings included
majority of respondents get aware from online sources about green banking and phone
call messages is the highly effective tool of promoting green banking, Bankers has the
opinion that majority customers use internet/ mobile banking, half of the bankers were
agreed that
 green banking leads to reduce operation cost and it also helps them to create promotion
for bank branch. Overall he concluded that, awareness about the concept should be
created in planned way and banks should play a pro-active role in environmental aspects
of the nation.

 JeyaRani and Thangaraja (2016) gave conceptual foundation for green banking
considering Marketing Intelligence (MI). They considered the Kotler’s view about
marketing intelligence which is “systematic collection and analysis of publicly available
information about competitors and developments in the marketing environment.” They
used the model of MI in green banking practices, the view was created that, it is require
to survey the customers and ask the opinions about the technology or products they are
aware of considering the educational background, Income, age etc. Thereafter fair view
will be generated by banks about the new innovations to be done for attracting more
customers and to create goodwill, by this way green initiatives should be marketed

 Barhate, G., & Tamboli. M (2016) considered the theory regarding green banking and
focused on conceptual explanation. They covered methods like paper less banking,
green credit cards, energy resources etc. for going green. They found there exists many
opportunities like creating environment friendly products, adoption of carbon foot print
design, Inventory wastage planning etc. Few challenges include newly opened banks
would find difficulties, talented and experienced staff needed, credit risks. It was
recommended that government should play active role and formulate green policy.

 Rakesh et al. (2016) studied the concept of green Banking and rating standards given
by RBI. They also discussed World Bank’s environmental and social norms, the
initiatives taken by public and private sector banks in India for Green Banking practices.
They gave overview of current practices in the same regard. They concluded the concept
is good for Banks and its asset quality and it must be practiced.

 Brar (2016) emphasizes on the green banking aspects of public and private sector and
compare the same. Primary data was collected from Gurgaon’s bankers about the green
banking. It was found that there is association between type of bank and usage of
Internet
 banking/ Branch banking, while no association between type of bank and usage of ATM
and Mobile banking. Private sectors banks are more aware about the environmental
benefits of green banking. On the overall basis, it was concluded, private banks are more
into motivating customers for green practices and provision of online services.

 Mahesh et al. (2016) focused on trends in banking for going green. They explained how
the green banking promotes environment friendly practices. They covered basic
theoretical things about the green banking like steps in green banking, risks mitigated,
initiatives by banks, sustainable development due to green initiative etc. They even
conducted interviews with customers and bankers to know about the awareness and way
to create awareness for green banking. It was concluded that bank believe a small step
towards green initiative would main restored environment. Bankers can create ethical
banking and create awareness about the environmental responsibilities amongst business
people.

 Jayabal and Soundarya (2016) gave a theoretical framework about the concept of
green banking in India. Their main highlights included the description of banks’
initiatives for sustainable development. They describe, SBI became the first to set up
windmill, tries to reduce the carbon footprints. It was discussed that suzlon – having 55
percent market share in the company has tie ups with twenty five banks for the wind
power and green initiatives. It was concluded carbon footprints can be reduced by paper
less banking, energy consciousness, green building. It was suggested that Indian banks
should adopt green banking as model.

 Kapoor et al. (2016) studied the need of green banking. Strategies for adopting green
banking was also focused like carbon credit, E- banking, energy consciousness, green
building, social responsibility services etc. It was observed from the study, that banks
are gradually moving towards sustainability through social banking. Banks has initiated
service innovations. Green Banking to be considered as preventive measure for
polluting Industries.
 Sahoo et al. (2016) highlighted that there are very studies considering the relation of
adoption of green products and demographic variables. So, with the attempt to bridge
the gap, ANOVA test was applied on analyse the adoption of green banking products
among customers with different age groups. It was found there is significant difference
in usage of green products and age groups. They concluded, young generation prefers
the green products than middle age and senior age groups, as the later age groups lacks
awareness.

 Malliga and Revathy (2016) conducted a primary study on the awareness of Customer
for Green Banking initiatives taken up by private Banks at Theni District. They
discussed the Green Products and SWOC analysis of Green Banking as theoretical
framework. Considering empirical side, initiative taken by few of the private banks at
the selected district was emphasized. They found majority of the banks give training for
green banking services, major problem in green banking system is lack of customer
interaction, giving security & privacy was the most important tool to create awareness
of the green banking concept, which was perceived by customers. It was concluded
Bank has to create Green goals and market them for creating awareness amongst
customers. At the end, Age was considered for checking its relation with other variables
through ANOVA, where a only one variable saving in time is found to be significantly
different regard to age of customers.

 Narmadha (2016) attempted to know the awareness on Green banking among the
customers of six different banks at Chennai. They surveyed the usage, awareness of
Green Banking. Initiatives by banks, where majority were aware about the concept and
the initiative of Green checking. They also concluded from test that there is no relation
between age of customers and awareness / usage of Green Banking.

 Ganesan and Bhuvaneswari (2016) studied the awareness of green banking, and level
of green banking concept prominent among the customers. They gave overview of
Green Banking and its steps. On the primary side, they have done survey at Chennai and
found age/ Educational qualification is associated with the awareness of Green Banking.
Considering awareness, it was also found, majority of the respondents were aware about
the concept and online/ Mobile banking but many other products are not known by
them.
 They concluded Banks should take steps to create awareness and environmental
protection.

 Ravikumar and Jagadeesha (2016) has done an empirical study on awareness of green
banking and usage of online banking by customers of southern Karnataka district. They
compared the parameters between the two cities. They performed Chi Square Analysis
keeping the three parameters- District, Profession and Gender. The relationship of these
three parameters and awareness of Green Banking / usage of online Banking was
studied. It was found, Mysore customers’ especially males are significantly more aware
and profession is also associated with awareness of the green banking. Considering
usage of online Banking, Business professionals are highly associated and again Mysore
customers are having higher usage, while gender doesn’t play any role in this.

 Sahoo and Singh (2016) evaluated the adoption of green banking products among
customers having different educational qualification and different age groups
considering ANOVA test. They found young generation is more inclined towards green
banking products and more awareness is to be generated amongst senior and middle age
group. The educational qualification has no association with usage of green banking
products.

 Vijayakumar (2016) studied the awareness level and satisfaction of Karnataka’s about
green banking services and green banking initiatives by banks. It was found that,
Majority were aware about the green checking account as one of the initiative of banks
under green banking, followed by cash deposit system and online banking. It was
determined from the sample respondents that there exist no significant differences in
awareness between green banking initiatives like e-statement, green loans, net banking
and Gender. Technical issues and lack of education were the major obstacles in availing
green services. It was concluded that Banks should strictly follow the equator principle
and there exist good opportunity in reducing carbon footprints.

 Dileep G Menon, Avinash Shivdas (2017) in their paper “Green Banking Initiatives: A
review of Indian Banking Sector”, studied about the various green initiatives introduced
by different banks in India. The Indian banks are implementing the green banking
 techniques in an effective manner it will act as a catalyst for protecting our environment.
Green Banking process helps the banks for creating cost efficient automated channels to
build consciousness and awareness among its various participants like customers,
business institutions and other financial institutions. Green banking involves in the
process of reducing paper works are possible since all the transactions are done through
online channels. Bank also introduced many products like green credit cards, green
mortgages etc. as part of the green projects.

 Sudarshan Giramkar (2018) attempts to study the various guidelines for

environmental upkeep and sustainability along with the initiatives taken by the public
and private sector banks. He finds that there is more of need to create awareness about
green banking products acceptance amongst the middle and senior age groups
individuals than young age people. Banks needs to apply morality of sustainability and
responsibility to their business model, strategy and formulation for products and
services, operations and financing actions and become tougher. By adopting the
environmental factors in their lending activities banks can recover the return from their
investments and make the polluting industries become environment friendly.
 CHAPTER 3
THEORETICAL FRAMEWORK
RELEVANCE OF GREEN BANKING IN SUSTAINABLE DEVELOPMENT OF INDIA

THEORETICAL FRAMEWORK

3.1 INTRODUCTION

The banking sector in India is the lifeline of the nation. It is the largest financial sector in
India. Indian banks have the potential to become fifth largest in the world by 2020 and third
largest by 2025. Banks have helped in country’s economic development and have transferred
the hopes of people into the reality.

The Traditional Banking sector in India can be defined as the banks whose primary activity is
to receive, keep and lend money. It has acted as the payment agent for its customers. It has
provided many facilities to the customers like the opening of an account, transfer of the
funds, providing of loans, clearing of cheque, clearing of demand drafts, etc. The main
objective of traditional banking is to increase their financial leverage by making more and
more profits without considering the negative impact of its activities on the environment.

In recent years Indian banks have witnessed the growing trend and have transformed its
operational strategies to a large extent. Green Banking is the new phenomenon in the
financial world which concentrates on environmental and socially responsible investing.
Green Banking is different from traditional banking as it is the concept of promoting
sustainable development in the country. In the era of Globalisation, global warming is
becoming one of the major issues across the world. The effects of Global warming have
found to be responsible for the destruction of the climate changes which have impacted the
land, water and human resources of the world. As people of the society are becoming more
concerned about the depletion of natural resources, organisations have started performing
their corporate social responsibilities. They have started modifying their working techniques
to maximize the greenery and to reduce the impact of their activities on the environment.

Green Banking is also called as the ethical banking which aims to protect the environment
and reduce the carbon footprint from banking activities. It encourages banks to carry out
environment-friendly investments by combining its operational improvements and
technology know-how in banking business activities. Green Banking has started priority
lending to those industries which are already green or putting its efforts to go green. The aim
of going green is to increase the energy efficiency and to use the biodegradable products.

SREE NARAYANA INSTITUTE OF TECHNOLOGY, ADOOR 20 | P a g e

The concept of going green is new in India and has been adopted by the Indian banks in many
forms. Banks have started providing services of online banking, mobile banking, green loans,
E-statements etc.

3.2 GREEN BANKING

Green Banking means ensuring environment friendly practices in banking sector and thereby
reducing internal and external carbon footprints. Banking industry is generally not considered
as polluting industry. But it impacts the environment in terms of increasing energy
consumption (lighting, air conditioning), paper consumption. A broader view of this is that
banking industry is linked to the external environment as it provides funds to others and
hence finances their activities. Banks are a source of funds. So they can contribute to
environment by ensuring environmentally responsible investment and a carefully evaluated
lending.

Green Banking therefore covers two aspects. The first one being judicious use of all
resources, energy and reducing carbon footprints and second being encouraging and
financing only environment friendly investment. So Green Banking is not only about making
sustainable use of resources but also about environment friendly dispensation of credit. A
proper scrutiny of all projects that are financed in terms of environment is another major
element of Green Banking.

Definition

 According to RBI (IDRBT, 2013), green banking is to make internal bank processes,
physical infrastructure and Information Technology effective towards environment by
reducing its negative impact on the environment to the minimum level.
 Institute for Development and Research in Banking Technology defines Green
Banking as Green Banking is an umbrella term referring to practices and guidelines
that make banks sustainable in economic, environmental, and social dimensions. It
aims to make banking processes and the use of IT and physical infrastructure as
efficient and effective as possible, with zero or minimal impact on the environment‟.
3.3 BENEFITS OF GREEN BANKING

 Basically Ethical (Green) banking avoids as much paper work as possible and rely on
online/electronic transactions for processing so that you get green credit cards and
green mortgages.
 Less paperwork means less cutting of trees.
 Creating awareness to business people about environmental and social responsibility
enabling them to do an environmental friendly business practice.
 Green (Ethical) banks adopt and implement environmental standards for lending,
which benefit our future generations.
 When you are awarded with a loan, the interest of that loan is comparatively less with
normal banks because ethical banks give more importance to environmental friendly
factors - ecological gains.
 Natural resources conservation is also one of the underlying principles in a green
bank while assessing capital/operating loans to extracting/industrial business sector.
 Green banks gives more importance to environmental friendly factors like ecological
gains thus interest on loan is comparatively less.
 Free electronic bill payment services.
 Online account opening form for opening green account.
 Cash back will be credited to all new customers, opening “green accounts”.
 Development of human capital of country

3.4 METHODS OF ADOPTING GREEN BANKING

There are many methods of adopting green banking in India. Some of them are

1. Use Direct Deposit: Most employers will give employees the option to receive their
paycheck electronically. Not only does this speed up the availability of your money and
save you a trip to the bank, it saves paper, lots of paper work etc.

2. Online Savings Account: Online savings account and mobile banking is the easiest
way that you can do your part to bank green and help the environment. Green banking
includes setting up direct deposit to receive your paychecks, receiving electronic
statements from
 your bank and by paying bills online. Online banking and mobile banking are also highly
effective ways to keep track of your finances and to avoid late payment fees.

3. Online Bill Payments: Paying bills online is something of a lifestyle change but it can
be done. Telephone bills, cable bills, utility bills, credit card payments and mortgage
payments can all be paid electronically. In fact, some online banking customers have
thrown away their checkbooks and completely converted to online payments. Not only
is the recordkeeping much easier, but again massive amounts of paper is saved.

4. Reward Debit and Credit Cards: Some banks have joined up with environment-
friendly groups like The Sierra Club or Defenders of Wildlife to create reward debit
cards and reward credit cards. Participating banks will make a small charitable donation
as a percentage of your online banking activity to help the environment.

5. Paperless Statements: Sending out bank statements by mail is a big waste of paper.
Signing up for online banking at most banks includes an option for customers to receive
their statements electronically through a secure login. Copies of banking records and
statements can then be stored electronically instead of in a filing cabinet. Receiving
statements electronically also reduces the chance of identity theft.

6. Net Banking: Online banking is when customers perform most of their banking related
functions without visiting the bank, personally. To do so, customers must possess an
internet banking ID and a password provided by the bank in which the individual
customer has an account.

7. Electronic Fund Transfer. Electronic banking, also known as electronic fund transfer
(EFT), uses computer and electronic technology as a substitute for checks and other
paper transactions. EFTs is initiated through devices like cards or codes that let you, or
those you authorize, access your account. Many financial institutions use ATM or debit
cards and Personal Identification Numbers (PINs) for this purpose.
8. Mobile Banking: Mobile banking is a term used for performing balance checks,
account transactions, payments, credit applications etc. via a mobile device such as a
mobile phone or Personal Digital Assistant (PDA)

9. Use Green Credit Cards: By using Green Credit Cards, banks are promoting different
schemes of using plastic money rather than currency notes in order to save environment.

3.5 GREEN BANKING PRODUCTS AND SERVICES

 Green Fiscal Fund:

By purchasing shares in a green fund or investing money in a green bank, citizens are
exempted from paying capital gain tax and receive a discount on income tax.

 Green investment fund:

Green Investments are the investment activity which focuses on the projects or areas
that are committed towards preservation of the environment such as Pollution
reduction, Fossil fuel reduction, conservation of natural resources, generation of the
alternative energy sources, project related to the cleaning and maintenance of air and
water, waste management or any other type of environmentally-conscious practices.

 Green bonds
Green bonds are designated bonds intended to encourage sustainability and to support
climate-related or other types of special environmental projects. More specifically,
green bonds finance projects aimed at energy efficiency, pollution prevention,
sustainable agriculture, fishery and forestry, the protection of aquatic and terrestrial
ecosystems, clean transportation, clean water, and sustainable water management.
They also finance the cultivation of environmentally friendly technologies and the
mitigation of climate change.

 Carbon Fund
Carbon Funds payments are designed to help countries and their stakeholders achieve
long-term sustainability in financing forest conservation. They are intended to help
 reduce climate change impacts from forest loss and degradation by making forests
more valuable standing than cut down.

 Green Insurance
This type of insurance typically encompasses two product areas:
- Insurance products with differentiate insurance premium on the basis of
environmentally related characteristic
- Those specially tailored for clean technology and emission reducing activities

 Green Mortgages
The Facility helps the individual customers to get a lower interest green loan market
rate, who is ready to purchase new energy efficient homes this facility also allows
them to invest energy efficient appliances

 Green home equity Loans

Reduced rate home equity loan sometimes referred to a second mortgages can help
motivate households to install residential renewable energy (power or thermal),
technologies

 Green commercial Building Loans

Green banking initiatives like solar ATM, banking environment policy, green loans
are not familiar among the customers. Environment protection is the duty of every
citizen, including Attractive loan designs and arrangements have started to emerge
for green commercial building characterized by lower energy consumption reduced
waste and less pollution than traditional building.

 Green Car Loans

With below market interest rate many green car loans encourage the purchase of car
that demonstrate high fuel efficiency.

 Green Cards
A board family of green products includes debit and credit cards linked to
environment activities. This green cards offered by large credit card companies offer
to make Non-
 government organizations donations equal to approximately One – half percent of
every purchase, balance transfer or cash advance made by the card owner.

 Green Project Finance

A number of banks are now ready to accept large scale renewable energy project. For
this they have to create service division also to help those companies who under take
large renewable energy system.

 Green Securitization
A variety of environment securitization techniques have begun to emerge, including
forest bond, eco securitization pilot program and green mortgages – backed
securities.

 Green Venture Capital and Private Equity

While issuing finance through capital market, we can see that high consideration paid
to environmental issues. In particular banks can play a vital role in assisting with IPO
for clean technologies providers. Carbon credit developers, and other film marketing
environmental products and services.

 Green Index
Some banks have currently developed index that fluctuate as future environmental
opportunities and challenges.

3.6 GREEN BANKING IN INDIA

India is on a higher growth trajectory for last one and half decade and the industrial
sector plays the most important role in India’s growth story. However, Indian industry faces
the challenges of controlling environmental impact of their business i.e. reducing pollution
and emission of their clients. Though government has been trying to address the issue by
framing environmental legislations and encouraging industry to follow environmental
technologies and practices, they would not be enough given the poor track records of
enforcement, public awareness and inability to derive competitive advantage by producing
eco-friendly products.

Incidentally, India’s is the world’s sixth largest and second fastest growing country in terms
of producing greenhouse gases. Delhi, Mumbai and Chennai are the three of the world’s ten
most polluted cities. The major polluting industries in India are (a) primary metallurgical
industries namely zinc, copper, steel etc. (b) paper & pulp (c) pesticides/insecticides (d)
refines
(e) fertilizers (f) tanneries (g) sugar (h) textiles (i) chemicals/pharmaceuticals etc.

The banking operation and investment by financial institutions should take care of
environmental management of these polluting industries by improving the overall
environment, the quality and conversation of life, level of efficiency in using materials and
energy, quality of services and products. In this context, the role of Green banking is
important for the sustainable development of India.

3.7 GREEN BANKING INITIATIVES IN INDIA

The Reserve Bank of India document titled ‘Policy Environment’ dated 8th
November, 2010 includes on Pages No. 56 and 57 a reference to Green Banking and Green
IT initiatives for banks in India. Banks in India too are adopting Corporate Social
Responsibility (CSR) and concerned about the protection of environment. Paper work is
being reduced enormously at various levels by bankers and customers. Along with providing
of on- site and off-site ATMs, some banks have also undergone ahead with innovative ideas
like installing Bio-metric ATMs, Solar-based ATMs, White-labelled ATMs, Brown ATMs,
SMS alerts, Mobile Banking etc. for the convenience of their customers [Ashok Singh
(2010)].Green Banking facility not only reduces environmental pollution, but also these
initiatives help the banks in reducing their cost of operations and delays as a result customer
satisfaction increases on a large scale. There are various banks in India that provide green
banking services to their customers.
 Table 3.1

3.7.1 GREEN BANKING INITIATIVES IN THE PUBLIC SECTOR

BANKS

PUBLIC SECTOR BANKS (PSBS)

The banks where majority of the stake (more than 50%) is held by the government are called
Public Sector Banks. The shares of PSBs are listed in the stock exchange. Currently there are
26 public sector banks in India.

 STATE BANK OF INDIA (SBI)

The State Bank of India (SBI) is an Indian multinational, public sector banking and financial
services statutory body. It is a government corporation statutory body headquartered in
Mumbai, Maharashtra. SBI is ranked as 236th in the Fortune Global 500 list of the world's
biggest corporations of 2019. It is the largest bank in India with a 23% market share in assets,
besides a share of one-fourth of the total loan and deposits market. The bank was established
in 1806 as Bank of Calcutta and became as the State Bank of India in the year 1955 during
the nationalization of Imperial Banks in India. The bank offers various ranges of activities
such as
investment banking, consumer banking, commercial banking, assets management, pension,
insurance, mortgages and credit card, through it widespread network of branches in country
and overseas.

The Green Banking Initiatives taken by SBI

SBI-First bank in India that has launched green banking policy and set up windmills in Tamil
Nadu, Maharashtra and Gujarat in generating 15MW power. SBI has also planned to install
an additional 20 MW capacity of windmills in Gujarat soon and touch 100 MW power
generation through windmills within five years, windmills are set up with a definite objective
of reducing the dependence on the polluting thermal power and not on purely economic or
business consideration. SBI is promoting green power projects SBI is also offering green
home loans by adopting green banking policy. Export Import Bank of India (EXIM) and SBI
entered into an agreement to jointly provide long term loans up to 14 years to Spain based
company A stonfield Renewable Resources and Grupo T-Solar Global SA for building solar
plant in India (Yadav & Pathak, 2013). SBI has become a signatory to the Carbon Disclosure
Project in which they take various environmentally and socially sustainable initiatives
through its branches spread across the length and breadth of the country. SBI has launched
Green Channel Counter (GCC) facility at their branches in 2010 to change the traditional way
of paper based banking (SBI, 2014).

SBI had spelt out several initiatives within the bank to further the cause of green banking by:

 The inauguration of a windmill at Panapatti village, Pollachi Taluk, Tamil Nadu.

 Sensitizing employees through training, workshops and education programmes.
 By investing in efficient lighting systems, energy savers and waste water management.
Mooting a project within the bank to determine its carbon footprint.
 Offer concessional rate of finance for projects that are green, or for implementing clean
technologies in building concepts.
 Carbon Credit Plus is a product for financing carbon credit receivables.
 Transaction through the SBI ATM-Cum Debit card.
 CSR Philosophy: The Bank is a corporate citizen, with resources at its command and
benefits which it derives from operating in society in general. It therefore owes a solemn
duty to the less fortunate and underprivileged members of the same society.
 Staff members are encouraged to make their contribution by understanding the
aspirations of the public around them and by endeavoring to evolve measures to remove
indisputable social and developmental lacunae.
 Green Channel Counter
The Bank had launched 'Green Channel Counter'(GCC) facility on State Bank Day
(01.07.2010), at 57 select branches of the Bank spread across the country. This was an
innovative step taken by the Bank towards changing the traditional way of paper
based banking in a limited way, to card based ‘Green Banking’ focusing on reduction
in paper usage as well as saving transaction time. This is a pioneering concept which
would save both paper and time resources.

 PUNJAB NATIONAL BANK (PNB)

Punjab National Bank (PNB) is a Banking and financial service bank owned by the
Government of India with its headquarters is in New Delhi, India. The bank was founded in
1894 and is the second largest public sector bank (PSB) in India, both in terms of business
and its network. The bank has over 180 million customers, 10,910 branches and 13,000+
ATMs post-merger with United Bank India and Oriental Bank of Commerce, effective from 1
April, 2020.

The Green Banking Initiatives taken by Punjab National Bank

 Bank has started using energy efficient appliances & conducting the electricity
auditing of their offices. On the other side the bank is also accenting on green
infrastructure.
 A separate green audit sheet is being employed by the bank to access the impact of
various green banking initiatives implemented in the bank.
 The bank has conjointly placed guidelines for supply the term loan to the business
units and commercial projects that are producing renewable energy and special
guidelines has been issued to curb the units that use environmental depleting
substances.
 In the year 2010-11 the bank has sanctioned nine commercial projects of wind energy
comes with total sum of Rs.1850.81 million to push and develop the renewable supply
of energy.
 In the year 2018- 2019, as a part of green initiative 2 tree plantation programmes were
organized and 200 trees were planted.
  CANARA BANK

Canara Bank is one of the largest public sector banks owned by the Government of India. It is
headquartered in Bengaluru. It was established at Mangalore in 1906 by Ammembal Subba
Rao Pai and later the government nationalized the bank in 1969. The bank also has offices
abroad in London, Hong Kong, Moscow, Shanghai, Dubai, Tanzania and New York. As per
the announcement made by the Finance Minister Nirmala Sitharaman on 30 August 2019,
Manipal based Syndicate Bank merged from 1 April 2020, making it the fourth largest bank
in the country.

The Green Initiatives taken by Canara Bank

 The bank has implemented various green banking initiatives such as internet banking,
tele-banking & mobile banking. Solar power biometric ATMs has been implemented
in a few rural areas.
 Now the bank is not extending the finance to the new units which are involved in
producing and consuming Ozone depleting substances. The bank has also stopped
extending the finance small/medium scale unit engaged in the manufacturing of
Aerosols by using CFC.
 The bank insisted to manufacturing units which emit toxic polluting substance to
implement water treatment plant and obtain NOC (No Objection Certificate) from
central/ state government pollution control board while lending the loan.
 The bank is providing loans for implementing solar lighting system, till the date the
bank has financed 50,000 such unit lending Rs. 5-8 lac to each unit.

 UNION BANK OF INDIA

Union Bank of India was established on 11th November 1919 with its headquarters in the city
of Bombay now known as Mumbai. Union Bank has been playing a very proactive role in the
economic growth of India and it extends credit for the requirements of different sectors of
economy. Industries, exports, trading, agriculture, infrastructure and the individual segments
are sectors in which the bank has deployed credit to spur economic growth and to earn from a
well-diversified portfolio of assets.
Resources are mobilized through Current, Savings and Term Deposits and through refinance
and borrowings from abroad. The Bank has a large clientele base of over 5.7 crores.
The Green Initiatives taken by Union Bank of India

Union Bank of India marked is centenary year celebrations by Going Green and launching
series of green initiatives to reduce the carbon footprints and create a positive impact on the
environment. As a part of the program plantation of trees was done in the premises of Union
Bank Bhavan by Rai and field general manager Lal Singh. Besides saplings of trees were
distributed to customers and staff members of the Bank urging them to carry forward the
plantation program at their homes and office premises.

The Union Bank of India offers customers the option of a Green PIN, a green initiative and
value-added service, for a hassle-free ATM PIN generation fore debit cards both old and
new.

 INDIAN OVERSEAS BANK (IOB)

Indian Overseas Bank (IOB) is a major public sector bank based in Chennai, India, with
about 3,400 domestic branches, about 6 foreign branches and representative office. Founded
in February 1937 by Shri. M. Ct. Chidambaram Chettiar with twin objectives of specializing
in foreign exchange business and overseas banking, it has created various milestones in
Indian Banking Sector. IOB was the first bank to venture into consumer credit by introducing
a personal loan scheme. During nationalization, IOB was one of the 14 major banks taken
over by Government of India.

The Green banking initiatives taken by Indian Overseas Bank

In terms of national goals and socio-economic objectives, Bank endeavors to increase

exposure to sectors such as social infrastructure (schools, health care facilities, drinking water
facilities, sanitation facilities including house hold water level improvement) and renewable
energy, ie., for purposes such as solar based power generators, wind mills, micro hydel plants
and for non- conventional energy based public utilities, viz., street lighting systems and
remote village electrification.

Measures to reduce consumption of paper:

As a part of Green Initiative, the Bank is moving towards paperless banking, which will
reduce the cost as well as save time. Recently a unique product which can offer customized
MPOS collections instead of collections through Cheque/Cash has been implemented. Green
PIN for ATM debit cards has also been enabled. The Bank has a Business Intelligence
Suite which
gives interactive Dash Boards, alerts, analytics etc. System is established to store huge
amount of historical data and data relating to 12 years has been warehoused. The following
initiatives have also been taken:

 Use of cash recyclers for deposit and withdrawal of cash

 Promoting use of POS machines
 Promoting use of M-Passbooks
 Increasing share of e-transactions
 Promoting use of Internet Banking, Mobile Banking and other e-channels
 Bharat Bill Payment System (BBPS), an integrated bill payment system for customers
online has been launched
 Digital initiatives such as “IOB Connect” – a comprehensive mobile app for Android
phones, “IOB Pay” – an integrated online payment gateway platform, Bharat Interface
for Money (BHIM) has been launched to make direct bank to bank payments instantly
and collect money using just mobile number or payment address. BHIM IOBUPI is
the application launched by our Bank using Unified Payment Interface. As on
31.03.2018,
8.11 lakh customers have been on boarded on this platform and 3.23 lakh users on
BHIM.

 BANK OF BARODA (BOB)

Bank of Baroda is an Indian state owned (public sector) bank established in the year 1908 in
the princely state of Baroda. The Bank was nationalized in the year 1969 by the government
of India. It provides various ranges of banking products and financial services through its
branches such as corporate banking, investment banking, retail banking, asset management
etc. to the consumers. In year 2012 the bank was ranked 715 on Forbes Global 2000 list.

The Green banking initiatives taken by Bank of Baroda

 Internet banking, mobile banking was added as alternate delivery channel to reduce
the use of paper in banking procedure.
 As a part of green banking initiatives various changes were made such as backup
consolidation, server and desktop virtualization.
  While financing the commercial projects the banks give a due weight age to green
projects such as windmills and solar power projects which helps in earning the carbon
credit.
 The bank insisted to implement water treatment plant and obtain NOC from central/
state government pollution control board while lending the loan to manufacturing
units which emit toxic polluting substance.
 Promotion of measure of pollution control and efforts for environmental protection &
conservation and cleaning of environment.

3.7.2 GREEN BANKING INITIATIVES IN THE PRIVATE SECTOR

BANKS

PRIVATE SECTOR BANKS

The banks where major parts of the equity are held by private shareholders and not by state or
government are called private sector banks.

 ICICI BANK

ICICI Bank is a leading private sector bank in India. The Bank’s consolidated total assets
stood at Rs.12.50 trillion at June 30, 2019. ICICI Bank currently has a network of 5,275
branches and 15,589 ATMs across India.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI Bank offers a wide range of banking
products and financial services to corporate and retail customers through a variety of delivery
channels and through its group companies.

The Green Initiatives taken by ICICI Bank

ICICI Bank attempts to support other organisations in their endeavors to 'Go Green' by
funding and managing green technology projects.

 ICICI Bank tried to reduce its footprint by providing customers alternate and non-
paper-based channels such as e-branches, e-statements, online banking and mobile
banking.
  The bank is working with Green Business Centre in collaboration with other business
organization having focus on promoting green building, energy efficiency, recycling
etc.
 ICICI has partnered with the Indian government, World Bank and UNAID to support
SME projects in the area of green research and clean technology. It is also working
with the Indian Army on water management, energy conservation and alternative
energy projects.
 The bank has also partnered with TATA Power to raise awareness on energy
conservation at schools through the TATA Power Club. ICICI Group companies have
saved around 30,000 trees and 16 crore litres of water through green initiatives

 HDFC BANK

HDFC Bank is one of India’s leading private banks and was among the first to receive
approval from the Reserve Bank of India (RBI) to set up a private sector bank in 1994.

Today, HDFC Bank has a banking network of 5,345 branches and 14,533 ATMs spread
across 2,787 cities and towns. HDFC Bank offers a diverse range of financial products and
banking services to customers through a growing branch and ATM network and digital
channels such as Net Banking, Phone banking and Mobile Banking.

The Green Initiatives taken by HDFC BANK

 To reduce environmental footprint bank has continuously undertaken green

procurement, efficient lighting solutions, optimized travel planning, reducing paper
consumption etc.
 Bank has send PIN unique code number of debit card through SMS rather than send it
by post.
 Bank has made multiple banking channel for customers such as internet banking,
mobile banking, ATM etc. which helps for paperless banking.
 Bank installed solar ATMs and these ATMs use rechargeable Lithium Ion batteries
for uninterrupted power supply.
 Bank has introduced server and desktop virtualization for reducing power consumption.
 Bank has initiated Energy Management Kits in branches such as use of star-rated and
energy efficient air-conditioners, switching off the branch signage after 11 pm,
replacing inefficient lighting with LED lights etc.
  Banks are engaged in electronic media rather than print communication,
establishment of multiple alternate service points paperless transactions,
encouraging retail customers to subscribe to e-statement, employee awareness
campaigns to promote environment friendly practices, deploying motion sensors to
switch off lights in an empty room in select locations etc.
 Bank managed their waste by tying up with vendors for recycling of paper and plastic
in addition to that, they used reusable cups and plates.

 AXIS BANK

Axis Bank is the third largest private sector bank in India. The bank started its operations in
1994 when the Government of India allowed the private banks in Indian market. The Bank
offers the entire spectrum of financial services to customer segments covering Large and
Mid- Corporates, MSME, Agriculture and Retail Businesses. The Bank has a large footprint
of 4,528 domestic branches (including extension counters) with 12,044 ATMs & 5,433 cash
recyclers spread across the country as on 31st March, 2020.

The bank is also engaged in various corporate social responsibility (CSR) activities through
its trust- The Axis Bank Foundation. The bank donates it 1 percent of total annual net profit
for the social initiatives and the betterment of the society through their foundation.

The Green Initiatives taken by AXIS BANK

 Encourages its customers to subscribe for e-statements and other electronic formats of
communication to reduce paper consumption,
 Encourages to adopt green building concept for its office space (Bank’s corporate
office ‘Axis House’ is designed and constructed as a Platinum LEED-Certified
“Green Building”) and many other similar activities.
 Conducts tree plantation programs (Plant a Sapling initiative)
 Uses renewable energy units for the purpose of street lighting.
 Uses water collected from rainwater harvesting system and a sewage treatment plant.
 Uses furniture made out of a high percentage of recycled materials.
 Initiated solar-based UPS for ten ATMs under its Independent ATM Deployment
(IAD) model.
  FEDERAL BANK

Federal Bank Limited is a major Indian commercial bank in the private sector headquartered
at Aluva, Kerala having more than thousand branches and ATMs spread across different
States in India. The Bank is a pioneer among traditional banks in India in the area of using
technology to leverage its operations and was among the first banks in India to computerize
all its branches. The Bank offer its customers, a variety of services such as Internet banking,
Mobile banking, on-line bill payment, online fee collection, depository services, Cash
Management Services, merchant banking services, insurance, mutual fund products and many
more as part of its strategy to position itself as a financial super market and to enhance
customer convenience.

The Green Initiatives taken by Federal Bank

Federal Bank has launched 'Soft PIN' facility for Debit cards, a go-green initiative as part of
its journey towards enhancing ‘Digital Convenience’ for its customers. Soft PIN, which
replaces printed ‘PIN- Mailers’, can be generated by the customers themselves through any of
the Bank’s 1500-plus ATMs across the country, thus avoiding the hassles involved in sending
and receiving of physical PIN Mailers.

 It provided Federal Green Plus loan is extended to needy farmers to meet the cost /
expenses of any genuine direct agricultural purpose (including allied activities).
 It also provided Plantation Development Loans

 SOUTH INDIAN BANK

One of the earliest banks in South India, "South Indian Bank" came into being during the
Swadeshi movement. The establishment of the bank was the fulfillment of the dreams of a
group of enterprising men who joined together at Thrissur, a major town (now known as the
Cultural Capital of Kerala), in the erstwhile State of Cochin to provide for the people a safe,
efficient and service oriented repository of savings of the community on one hand and to free
the business community from the clutches of greedy money lenders on the other by providing
need based credit at reasonable rates of interest

The Green Initiatives taken By South Indian Bank

Green Pin, the green initiative from South Indian Bank offers an effortless and hassle free
ATM PIN generation. This initiative helps in reduction of paper consumption as it avoids the
usage of Paper Pin Mailers - a system which is used currently whenever you request a
Debit Card
Pin. Thus, this initiative helps you to be a part of the Global Green Project to save the Earth
for the generations to come.

 INDUSIND BANK

IndusInd Bank Limited is an Indian new generation bank in Pune, established in 1994. The
bank offers commercial, transactional and electronic banking products and services. IndusInd
Bank was inaugurated in April 1994 by then Union Finance Minister Manmohan Singh.
IndusInd Bank is the first among the new-generation private banks in India.

IndusInd Bank is a universal Bank with a widespread banking footprint with over 2.5 crore
customers, over 5,000 distribution points and nearly 2,000 branches across the country. With
‘Sustainability’ at the core, it offer a wide array of products and services for individuals and
corporates including microfinance, personal loans, personal and & commercial vehicles
loans, credit cards and SME loans.

The Green Initiatives taken By IndusInd Bank

 Considering the severe water crisis building up across Indian cities, IndusInd Bank
focuses on the restoration and the conservation of water bodies, particularly in urban
centres. Water bodies are an important part of an urban ecosystem.

 IndusInd Bank has lit up the streets of 29 villages in Rajasthan with 2,000 Solar-
powered Street Lights, benefitting over 1, 65,000 villagers. They were responsible for
managing the logistics and the installations. The use of solar energy to power these
street lights, with no dependency on grid power, helps in mitigating carbon emissions.

 IndusInd Bank has partnered with Centre for Environmental Research & Education
(CERE) for the Schools on Solar initiative. This project aims to help schools adopt
renewable energy and also design innovative strategies to help students and staff
reduce energy consumption within the school premises. Besides decreasing the carbon
footprint, this programme also includes a dimension of sensitizing students about
Climate Change and sustainability by broadening the educational framework.
IndusInd Bank hopes that this will create a new generation of better-informed youth
who will work towards a more sustainable future.
3.8 CHALLENGES OF GREEN BANKING IN INDIA

Following are the major challenges of Green Banking operations in India:

 Diversification: Diversification is the major challenge to go for Green banks which

hamper their business transactions to those business bodies who qualify screening
process done by green banks. With limited number of customers, Green banks will have
a smaller base to support them.
 Start-up Face: Several banks in Green business are very new and are in start-up face. It
generally takes 3 to 4 years for a bank to start making money, thus it does not help
banks during recession.
 Operating Cost: Green banks require talented, experienced staff to provide proper
services to customers which requires higher the operating cost. Experienced loan
officers are needed with additional experience in dealing with green businesses and
customers.
 Brand Risk: If banks involved in Green banking operations, such projects will damage
the environment where they are prone to loss of their brand reputations. There are also
few cases where environmental management system has resulted in cost saving, increase
in bond value.
 Credit Risk: It arises due to lending to those patrons whose businesses are pretentious
by the cost of pollution, changes in environmental regulations and new chucks on
emissions levels. It is higher due to probability of customer default as a result of
uncalculated expenses for capital investment in production facilities, loss of market
shares and third party claims.
 Specific Banks: The focal area of a Green bank is to support those who takes care of the
environment, which involves money. Saving the environment does not necessarily
equate to “making a profit”. Hopefully though, this premise is proven wrong in this case
and that green banks prove that they can survive, even as they face restrictive
requirements for doing business
 CHAPTER 4

RESEARCH METHODOLOGY
RELEVANCE OF GREEN BANKING IN SUSTAINABLE DEVELOPMENT OF INDIA

4.1 OBJECTIVES OF THE STUDY

 To understand the relevance of Green Banking in sustainable development of India.

 To know about the initiatives taken by Indian banks to make them Green Bank.
 To find out the challenges in implementation of green banking in India.

4.2 HYPOTHESIS

Null Hypothesis (H0): There is no significant relationship between green banking and
sustainable development.

Alternate Hypothesis (H1): There is significant relationship between green banking and
sustainable development.

4.3 RESEARCH DESIGN

Research design used in this study is descriptive. Descriptive research is a type of conclusive
research which is used to describe characteristics of a population or phenomenon being study.

The survey method is a structured questionnaire given to a sample of a population designed

to elicit specific information from respondents.

4.4 SOURCES OF DATA

There are two types of data used for this study which are primary and secondary data.

Primary data collected through questionnaire and secondary data for this study was collected
through various books, magazines, journals, newspaper and websites.

4.5 PRIMARY AND SECONDARY DATA

Data collection is one of the most important aspects of research. The information in the
research methodology must be accurate and relevant. The data collection method can be
classified into two methods.

 Primary data
Questionnaire method have been used as a tool for a data collection in this research.
 Secondary data
Secondary data means data that are already available i.e., they refer to data which has
already been collected and analyzed by someone else. The secondary data for the
study was collected from book, websites, magazines and journals etc.

SREE NARAYANA INSTITUTE OF TECHNOLOGY, ADOOR 40 | P a g e

4.6 POPULATION

Population is a large collection of individuals which have similar characteristics. Population

refers to the total number of items about which the information is desired. For this study the
overall population is private banks, public banks and cooperative banks in India

4.7 SAMPLE DESIGN

Sampling design is a framework which gives the basis for the selection of sample from a
given population. Sample design has two elements they are sampling method and estimator

 Sampling Unit:
The sampling unit is the bank employees of public, private and cooperative banks.
 Sample Size:
The sample size of the study is 70.

4.8 SAMPLING METHOD

For this study convenient sampling method is used. Convenience sampling is a type of
sampling in which people are sampled simply because they are "convenient" sources of data
for researchers.

4.9 METHOD OF DATA COLLECTION

For this study literature sources and surveys are used for data collection. Self- administrated
questionnaire was used to collect primary data.

4.10 DRAFTING A QUESTIONNAIRE

The basic requisite of any research study is the appropriate data which can be collected with
the help of a questionnaire. So that the relevant questions can be prepared. Decision of
questions depends upon its purpose. Irrelevant and ambiguous questions should be avoided.

There are various types of questions that used for data collection

 Yes/No questions
 Multiple choice questions
 Close ended questions
4.11 PILOT SURVEY

Before collecting the relevant data to test the hypothesis, it is essential to ascertain the
applicability of the instrument to the population being studies. Hence, a pilot study was
undertaken with an objective to evaluate the tools prepared for the study and to find whether
they are providing the information required.

4.12 STATISTICAL ANALYSIS

 PERCENTAGE ANALYSIS
Percentage is referred as a special kind ratio. Percentage is used in making
comparison between two or more series of data. They are used to describe
relationship. More over percentages can be used to compare the relative terms of the
distribution of two or more series of data.

Formula
Percentage of respondents = No: of Respondents ×100

Total no: of observation

 AVERAGE (MEAN)
Average is most important and frequently used technique. Mean, also known as
arithmetic average, is the most common measure of central tendency and may be
defined as the value which we get by dividing the total of the values of various given
items in a series by the total number of items.
 STANDARD DEVIATION
The standard deviation is a measure of the amount of variation or dispersion of a set
of values, a low standard deviation indicates that the values tend to be close to the
mean (also called the expected value) of the set, while a high standard deviation
indicates that the values are spread out over a wider range.
 CHAPTER 5

DATA ANALYSIS AND INTERPRETATION

RELEVANCE OF GREEN BANKING IN SUSTAINABLE DEVELOPMENT OF INDIA

5.1 DATA ANALYSIS AND INTERPRETATION

Table 5.1

Gender of Respondents

SL.NO: OPINION NO: OF RESPONDENTS PERCENTAGE

1 Male 42 60%

2 Female 28 40%

TOTAL 70 100%

Gender of Respondents

Female
40%
Male
Male
60%
Female

Fig No: 5.1

Gender of Respondents

Interpretation: It is observed that 60% of respondents are male and 40% of the respondents
are female respondents.

SREE NARAYANA INSTITUTE OF TECHNOLOGY, ADOOR 44 | P a g e

 Table 5.2

Age of the Respondents

SL.NO: AGE OF THE NO: OF PERCENTAGE

RESPONDENTS RESPONDENTS
1 22 to 28 years 42 60%

2 29 to 38 years 18 25.7%

3 39 to 48 years 10 14.3%
4 over 49 years - -
Total 70 100%

AGE OF THE RESPONDENTS

39 - 48 years Over 49 years
14% 0%

29 - 38 years
26% 22 - 28 years
60%

Fig No: 5.2

Age of the Respondents

Interpretation: The above pie-chart shows that 60% of the respondents belongs to the age
group 22 –28 years, 25.7 % fall under the category of 29 – 38 years, 14.3% belongs to the age
group 39 -48 years and there is no respondents belongs to the age group more than 49 years.
 Table 5.3

Qualification of the Respondents

SL.NO: QUALIFICATION OF NO: OF PERCENTAGE

THE RESPONDENTS RESPONDENTS
1 Graduate 40 57%

2 Postgraduate 30 43%

Total 70 100%

Qualification of Respondents

43% Graduate
Post Graduate
57%

Fig No: 5.3

Qualification of the respondents

Interpretation: It is observed that 57% of the respondents are postgraduates and 43% of the
respondents are graduates.
 Table 5.4
Designation of the respondents

SL.NO: DESIGNATION OF NO: OF PERCENTAGE

THE RESPONDENTS RESPONDENTS
1 Manager 16 23 %
2 Assistant Manager 26 37 %
3 Banking Assistant 22 31 %
4 Banking Trainee 6 9%
5 Other - -
Total 70 100%

Designation of the respondents

9%
23%

31%

37%

ManagerAssistant ManagerBanking AssistantBanking TraineeOthers

Fig No: 5.4

Designation of the respondents

Interpretation: The above pie-chart shows that 23% of the respondents are manager, 37% of
the respondents are assistant managers, 31% are banking assistant and 9% are banking trainee.
 Table 5.5
Work Experience of the respondents

SL.NO: WORK EXPERIENCE NO: OF PERCENTAGE

OF THE RESPONDENT
RESPONDENTS SS
1 0 -2 years 32 46%
2 2 – 4 years 26 37%
3 4 – 6 years 4 6%
4 Above 6 years 8 11%
Total 70 100%

WORK EXPERIENCE
35
30
25 32

26
20
15
10
5

8
4
0
0 - 2 years 2 - 4 years 4 - 6 years Above 6 years

Fig No: 5.5

Work Experience of the respondents

Interpretation: It is observed that 46% of the respondents have work experience of 0 – 2

years, 37% have work experience of 2 – 4 years, 6% have 4 – 6 years and 11% of the
respondents have working experience more than 6 years.
 Table 5.6
Banks in which the respondents work

SL.NO: BANKS NO: OF PERCENTAGE

RESPONDENTS
1 PUBLIC BANKS 25 36%

2 PRIVATE BANKS 37 53%

3 COOPERATIVE BANKS 8 11%

TOTAL 70 100%

BANKS

Cooperative
11% Public Sector
36% Public Sector Private Sector
Cooperative
Private Sector
53%

Fig No: 5.6

Banks in which the respondents work

Interpretation: It is observed that 53% of the respondents are working in private banks, 36%
of the respondents are working in public banks and 11% of the respondents are working in
cooperative banks.
 Table 5.7
Banks are using green system in their operations

SL.NO: OPINION NO: OF PERCENTAGE

RESPONDENTS
1 YES 60 86%

2 NO 10 14%

TOTAL 70 100%

BANKS ARE USING GREEN SYSTEM

YESNO

14%

86%

Fig No: 5.7

Banks are using green system in their operations

Interpretation: It is observed that 86% of the banks are using green systems in their day to
day operations and 14% of banks are not using green systems in their day to day operations.
 Table 5.8

Bank took any initiative to become a green bank

SL.NO: OPINION NO: OF PERCENTAGE

RESPONDENTS
1 YES 68 97%

2 NO 2 3%

TOTAL 70 100%

BANK TOOK ANY INITIATIVE TO BECOME A GREEN BANK

YESNO

3%

97%

Fig No: 5.8

Bank took any initiative to become a green bank

Interpretation: It is observed that 97% of the banks took initiative to become green bank and
only 2 % are not taking initiatives to become green bank.
 Table 5.9
Initiatives taken by banks to become a green bank

SL.NO: OPINION PUBLIC PRIVATE COOPERATIVE

BANKS BANKS BANKS
1 Paperless Banking 15 22 0

2 Mass 0 1 0
Transportation

3 Carbon Credit 2 2 0
Business

4 Energy 3 4 2
Consciousness

5 Social 5 8 4
Responsibility
Total 25 37 6

Table 5.10

Calculation of mean and standard deviation

PUBLIC BANKS PRIVATE BANKS COOPERATIVE

BANKS
Count, N 5 5 5
Sum, Σ x 25 37 6
Mean, x̄ 5 7.4 1.2
Variance, s2 34.5 73.8 3.2
SD, s 5.87 8.59 1.78
Interpretation: As per the statistics the respondent’s preference is high in case of private
sector banks in adopting green initiatives. The variation is high when compared with standard
deviation and mean of Initiatives taken by banks to become a green bank. Hence we conclude
that private banks took active participation in promoting and adopting green initiatives.

Table 5.11

Bank faced any challenges in implementing Green Banking Initiatives

SL.NO: OPINION NO: OF PERCENTAGE
RESPONDENTS
1 Yes 44 63%

2 No 26 37%

Total 70 100%

BANKS FACED ANY CHALLENGES IN

IMPLEMENTING GREEN BANKING INITIATIVES
YesNo

37%

63%

Fig No: 5.9

Bank faced any challenges in implementing Green Banking Initiatives

Interpretation: It is observed that 63% of the banks faced challenges in implementing green
banking initiatives and 37% of the banks not faced any challenges in implementing green
banking initiatives.
 Table 5.12

Challenges in implementing Green Banking Initiatives

SL.NO: OPINION PUBLIC BANKS PRIVATE COOPERATIVE

BANKS BANKS
1 Startup Face 5 9 0

2 High Operating 5 9 2
Cost
3 Credit Risk 4 3 3

4 Reputational 2 2 0
Risk
5 Others 0 0 0

Total 16 23 5

Table 5.13
Calculation of mean and standard deviation
PUBLIC BANKS PRIVATE COOPERATIVE
BANKS BANKS
Count, N 5 5 5
Sum, Σ x 16 23 5
Mean, x̄ 3.2 4.6 1
Variance, s2 4.7 17.3 2
SD, s 2.16 4.15 1.41

Interpretation: As per the data obtained it is clear that the variation is high in case of public
sector banks when compared between mean and standard deviation of challenges in
implementing green banking initiatives. Hence, we can conclude that public sector banks
faces huge challenges as compared to private and cooperative banks.
 Table 5.14
Bank taking active participation in educating customers about green banking

SL.NO: OPINION NO: OF RESPONDENTS PERCENTAGE

1 Strongly Agree 14 20%

2 Agree 54 77%

3 Undecided 2 3%

4 Disagree - -

5 Strongly Disagree - -

Total 70 100%

Bank taking active participation in

educating customers about green banking
54

60
50
40
30
20
10 14
0 0 0
2

STRONGLY AGREEAGREEUNDECIDEDDISAGREESTRONGLY
DISAGREE

Fig No: 5.10

Bank taking active participation in educating customers about green banking

Interpretation: In the survey, 20% of respondents strongly agree that banks taking active
participation in educating customers about green banking,77% of respondents agree that
banks taking active participation in educating customers about green banking, 3% of
respondents say that they have no idea about that and nobody disagrees to this statement.
 Table 5.15
Green banking is important for sustainable development

SL.NO: OPINION NO: OF PERCENTAGE

RESPONDENTS
1 Yes 68 97%

2 No 2 3%

Total 70 100%

Green Banking is important for

suatainable development
3%

97% Yes
No

Fig No: 5.11

Green banking is important for sustainable development

Interpretation: In the survey, 97% of respondents says that green banking is important for
sustainable development and 3% of respondents says that green banking is not important for
sustainable development.
 Table 5.16

Banks are actively organizing awareness campaigns to educate stakeholders on role

of green banking for the sustainable development

SL.NO: OPINION NO: OF PERCENTAGE

RESPONDENTS
1 Strongly Agree 12 17%
2 Agree 48 69%
3 Undecided 10 14%
4 Disagree - -
5 Strongly Disagree - -
TOTAL 70 100%

zing awareness campaigns to educate stakeholders on role of green banking for the susta
STRONGLY DISGREE

DISAGREE0
UNDECIDED
10
AGREE 48
STRONGLY AGREE12

0 10 20 30 40 50 60

Fig No: 5.12

Banks are actively organizing awareness campaigns to

Educate stakeholders on role of green banking for the sustainable development

Interpretation: In the survey, 17% of the respondents strongly agree that bank are actively
organizing awareness campaigns to educate stakeholders on role of green banking for the
sustainable development, 69% respondents agree that bank are organizing awareness
campaigns to educate stakeholders on role of green banking for the sustainable development
and 14% of respondents say that they have no idea it and nobody disagrees to this statement.
 Table 5.17
Bank provides training and education to the staff on environmental protection

SL.NO: OPINION NO: OF PERCENTAGE

RESPONDENTS
1 Always 24 34%
2 Sometimes 32 46%
3 Often 8 11%
4 Rarely 6 9%
5 Not at all - -
Total 70 100%

Bank provides training and education to the staff on environmental protecti

Always Sometimes Often Rarely

9% Not at all
11% 34%

46%

Fig No: 5.13

Bank provides training and education
to the staff on environmental
protection

Interpretation: In the survey, 34% of the respondents say that bank always provides training
and education to the staff on environmental protection, 46% says that sometimes bank
provides training and education to the staff on environmental protection, 11% of the
respondents says that bank often provides training and education to the staff on
environmental protection and 9% of the respondents says that bank rarely provides training
and education to the staff on environmental protection.
 Table 5.18
Bank uses e-waste management practices

SL.NO: OPINION NO: OF PERCENTAGE

RESPONDENTS
1 Strongly Agree 8 12%

2 Agree 52 74%
3 Undecided 8 11%
4 Disagree 2 3%
5 Strongly Disagree - -
Total 70 100%

Bank uses e-waste management

practices
Bank uses e-waste management practices

60
50
40

30

52
20
10
8 8 2
0
Strongly Agree Agree Undecided DisagreeStrongly Disagree

Fig No: 5.14

Bank uses e-waste management practices

Interpretation: In the survey, 12% of the respondents strongly agree that bank uses e-waste
management practices, 74% respondents agree that bank uses e-waste management practices
and 11% of respondents say that they have no idea about waste management practices and
nobody disagrees to this statement.
 Table 5.19
Bank provides loan to environmental protection and energy saving projects

SL.NO: OPINION NO: OF RESPONDENTS PERCENTAGE

1 Always 28 40%
2 Sometimes 30 43%

3 Often 8 11%

4 Rarely 4 6%
5 Not at all - -

Total 70 100%

Bank provides loan to environmental protection

and energy saving related projects

Oft Rarely
en6% Always Sometimes Often Rarely
11% Always Not at all
40%
Sometimes
43%

Fig No: 5.15

Bank provides loan to environmental protection and energy saving projects

Interpretation: In the survey, 40% of the respondents say that bank always provides loans to
environmental protection, 43% says that sometimes bank provides loans to environmental
protection, 11% of the respondents says that often bank provides loans to environmental
protection and 6% of the respondents says that rarely bank provides loans to environmental
protection.
 Table 5.20
Bank involves in setting up green branches

SL.NO: OPINION NO: OF RESPONDENTS PERCENTAGE

1 Strongly Agree 8 12%

2 Agree 52 74%
3 Undecided 10 14%
4 Disagree - -
5 Strongly Disagree - -
Total 70 100%

Banks involves in setting up green

branches
Strongly Disagree
Disagree0 Undecided

10

Agree 52

Strongly Agree 8

0 10 20 30 40 50 60

Fig No: 5.16

Bank involves in setting up green branches

Interpretation: In the survey, 12% of the respondents strongly agree that bank involves in
setting up green branches, 74% respondents agree that bank involves in setting up green
branches and 14% of respondents say that they have no idea about it and nobody disagrees to
this statement.
CHAPTER 6

FINDINGS
RELEVANCE OF GREEN BANKING IN SUSTAINABLE DEVELOPMENT OF INDIA

6.1 FINDINGS

 It is observed that 86% of the banks are using green systems in their day to day
operations and 14% of banks are not using green systems in their day to day
operations.

 It is observed that 97% of the banks took initiative to become green bank and only 2
% are not taking initiatives to become green bank.

 As per the statistics the respondent’s preference is high in case of private sector
banks in adopting green initiatives. The variation is high when compared with
standard deviation and mean of Initiatives taken by banks to become a green bank.
Hence we conclude that private banks took active participation in promoting and
adopting green initiatives.

 It is observed that 63% of the banks faced challenges in implementing green

banking initiatives and 37% of the banks not faced any challenges in implementing
green banking initiatives.

 As per the data obtained it is clear that the variation is high in case of public sector
banks when compared between mean and standard deviation of challenges in
implementing green banking initiatives. Hence, we can conclude that public sector
banks faces huge challenges as compared to private and cooperative banks.

 In the survey, 20% of respondents strongly agree that banks taking active
participation in educating customers about green banking,77% of respondents agree
that banks taking active participation in educating customers about green banking,
3% of respondents say that they have no idea about that and nobody disagrees to
this statement.

 In the survey, 97% of respondents says that green banking is important for
sustainable development and 3% of respondents says that green banking is not
important for sustainable development.

SREE NARAYANA INSTITUTE OF TECHNOLOGY, ADOOR 62 | P a g e

 17% of the respondents strongly agree that bank are actively organizing awareness
campaigns to educate stakeholders on role of green banking for the sustainable
development, 69% respondents agree that bank are organizing awareness
campaigns to educate stakeholders on role of green banking for the sustainable
development and 14% of respondents say that they have no idea it and nobody
disagrees to this statement.

 In the survey, 34% of the respondents says that bank always provides training and
education to the staff on environmental protection, 46% says that sometimes bank
provides training and education to the staff on environmental protection, 11% of the
respondents says that bank often provides training and education to the staff on
environmental protection and 9% of the respondents says that bank rarely provides
training and education to the staff on environmental protection.

 12% of the respondents strongly agree that bank uses e-waste management
practices, 74% respondents agree that bank uses e-waste management practices and
11% of respondents say that they have no idea about waste management practices
and nobody disagrees to this statement.

 In the survey, 40% of the respondents say that bank always provides loans to
environmental protection, 43% says that sometimes bank provides loans to
environmental protection, 11% of the respondents says that often bank provides
loans to environmental protection and 6% of the respondents says that rarely bank
provides loans to environmental protection.

 In the survey, 12% of the respondents strongly agree that bank involves in setting
up green branches, 74% respondents agree that bank involves in setting up green
branches and 14% of respondents say that they have no idea about it and nobody
disagrees to this statement.
 CHAPTER 7

RECOMMENDATIONS
RELEVANCE OF GREEN BANKING IN SUSTAINABLE DEVELOPMENT OF INDIA

7.1 RECOMMENDATIONS

Suggestions that can be adopted by Banks to Encourage Green Banking:

 Make customers more and more aware about green banking through website.
 Promoting different forms of electronic banking.
 Providing environment friendly rewards to employees.
 By financing more environment friendly projects.
 Clear policies are required to alerting the present management systems to incorporate
sustainability issues.
 Increase Social Responsibility services done by banks.
 Carbon footprint reduction by energy consciousness.
 Carbon footprint reduction by mass transportation.
 Impart education through E-learning Programmes.
 Concept of LEED certified green buildings should be adopted by banking sector.
 Banks must organize training program on environment sustainable development to
their employees
 Customers are not required to fill slip in the bank for the withdrawal of money rather
they could use ATM facility.
 The banks should report in their annual reports the initiatives taken by them for
sustainable development.
 Banks can introduce Green-funds for customers who would like to invest in
environment friendly projects.

SREE NARAYANA INSTITUTE OF TECHNOLOGY, ADOOR 64 | P a g e

CHAPTER 8

CONCLUSION
RELEVANCE OF GREEN BANKING IN SUSTAINABLE DEVELOPMENT OF INDIA

8.1 CONCLUSION

In the current scenario Indian cities are listed among the most 10 populated cities in the
world. The main reasons for these issues are excessive cut down of trees and construction of
multi storied building and the emission of hydro-fluro-carbon, nitrous oxide etc. that pollute
the environment. So in order to recover from these issues the best way is to adopt changes in a
way that is sustainable to the environment. If the Indian banks are implementing the green
banking techniques in an effective manner it will act as a catalyst for protecting our
environment.

Green banking is an initiative taken by banks to promote environment-friendly investment.

Green banking involves usage of green channel counters, online banking, e-statement, mobile
banking, solar ATMs, green loans, etc. Green banking deals with promoting environmental-
friendly practices along with reducing the carbon footprint from banking activities for
enhancing sustainable banking. Green Banking has been boosting the economic growth by
seeking investment opportunities in environmental-friendly business or sector. Green banking
is a proactive and smart way of thinking towards future sustainability by minimizing carbon
compounds. "Green Banking" not only ensures the greening of the industries but also helps to
facilitate improvement in the asset quality of the banks.

Green Banking process helps the banks for creating cost efficient automated channels to build
consciousness and awareness among its various participants like customers, business
institutions and other financial institutions. Green banking involves in the process of reducing
paper works are possible since all the transactions are done through online channels. Bank
also introduced many products like green credit cards, green mortgages etc. as part of the
green projects. As a part of their CSR activities many banks are also taken initiatives to create
awareness among the business class and the public and also states about the importance of the
going green policy.

Green banking if implemented sincerely opens up new markets and avenues for product
differentiation. Green Banking will be mutually beneficial to the banks, industries and the
economy. Green Banking will ensure the greening of the industries and improving the asset
quality of the banks. Government should play major role and formulate green policy
guidelines and financial incentive for going green. Proper training and educational programs
by banks for the green initiatives will actually make Green Banking successful.

SREE NARAYANA INSTITUTE OF TECHNOLOGY, ADOOR 65 | P a g e

REFERENCES
RELEVANCE OF GREEN BANKING IN SUSTAINABLE DEVELOPMENT OF INDIA

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 JOURNALS

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International Journal for Research in Management and Pharmacy, Vol. 4, Issue 1.
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January 2015.
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of Management & Research, 5(2), 49-52. doi:10.17697/ibmrd/2016/v5i2/100480
 Biswas, N. (2011) Sustainable Green Banking Approach: The Need of the Hour.
Business Spectrum. 1(1)
 Brar (2016), “Green Banking Adoption: A Comparative Study of Indian Public and
Private Sector Bank”,Envision-International Journal of Commerce and Management
Volume 10.
 C.A. Mahesh, M. Nirosha, and V. Pavithra. (2016). Recent Trends in Indian Banking,
Green Banking Initiative in India, International Journal f Science Technology and
Management, Vol. No.5, Special Issue No. 01.
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Management and Social Sciences, 1(11), 41-54
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Banks with Special Reference to State Bank of India”, Indian Journal of Commerce &
Management Studies.
 Dileep G Menon, Sreelakshmi S G and Avinash Shivdas (2017), “Green Banking
Initiatives: A review of Indian Banking Sector”, 2017 IEEE International Conference
on Technological Advancements in Power and Energy ( TAP Energy )
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initiative by private sector banks in Theni district”, EPRA International Journal of
Economic and Business Review, volume 4.

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 Gulshan Miyagamwala (2015), Green Banking: An Initiative for Sustainable
Economic and Environmental Development, Bharat College of Arts and Commerce,
Badlapur, MMR, India, Volume 4, Issue 3, 2015.
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 Hundal and Kumar (2015).”Consumer Perception towards Green Products: A Factor
Analytic Approach”. Pacific Business Review International, Vol(7)
 Jaggi, G. (2014). Green Banking: Initiatives by SBI and ICICI. Paripex-Indian Journal
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 Jayabal.G and Soundarya.M (2016), “Green Banking: As Banks Initiative For
Sustainable Development” International Journal of Management Vol 7(7) pp 276-280.
 Jha, N. & Bhome, S. (2013). A study of green banking trends in India.
 Jinwala A. Green banking in India. International Multidisciplinary Journal of Applied
Research. 2013; 1(7). issn 2320-7620 22. Mehar L. Green Banking in India. iJARS.
2014. 3(7). ISSN: 2278- 9480
 Kapoor et al. (2016), “Green Banking: A step towards Sustainable Development”
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2250- 057X.
 Karunakaran R (2014). “Green Banking – An Avenue to Safe Environment”, Galaxy
International Inter disciplinary Research Journal 2 (2). ISSN 2347-6915
 Komal Singhal, Krishna Singhal & Monika Arya (June 2014). “Green Banking: An
Overview”, Asian Journal of Multidisciplinary Studies, 2(6), ISSN 2321-
8819(online), 2348-7186(print), pp 196-200
 Krishna KB, Srinivas G (2014) Green Banking-An Impetus in Banking Sector
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 Malu, S., Agrawal, R., & Jajoo, D. 2014. Gallery: TMU. Retrieved from TMU:
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 Narang, D. (2015).“Green banking- a study of select banks in India”, International
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 Narmadha (2016). “A Study on Customer Awareness on Green Banking in Selected
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 Nath, V., Nayak, N. & Goel, A. (2014). Green Banking Practices- A Review.
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 Packialakshmi, S., & Ramesh, D. (2015). GREEN BANKING TRENDS IN INDIA
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Renewable Research Journal, Rex Journal, 3 (1), pp 167-170.
 R Ganesan, Bhuvaneswari (2016). “Customer perception towards green banking”
IOSR Journal of Economics and Finance.
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 WEBSITES
 https://indiacsr.in/sbi-introduces-green-reward-points-to-promote-sustainability
 https://www.pnbindia.in/
 https://canarabank.com/
 http://www.federalbank.co.in/
 https://en.wikipedia.org/wiki/Union_Bank_of_India
 https://economictimes.indiatimes.com/indian-overseas-bank/stocks/companyid-
11713.cms
 www.bankofindia.co.in/pdf/Green_Initiative_of_Bank0001.pdf
 https://www.voicendata.com/bank-of-baroda-we-planning-green-center/
 http://www.southindianbank.com/
 https://www.icicibank.com/
 https://www.icicibank.com/csr/green-india.html
 https://m.economictimes.com/industry/banking/finance/banking/icici-bank-plans-to-
go-paperless-in-green-drive/articleshow/52601430.cms
APPENDIX
RELEVANCE OF GREEN BANKING IN SUSTAINABLE DEVELOPMENT OF INDIA

APPENDIX

Dear Sir/Madam
I, SILPA P S, T6 MBA student of Sree Narayana Institute of Technology, Adoor,
conducting a project on the topic “RELEVANCE OF GREEN BANKING IN
SUSTAINABLE DEVELOPMENT OF INDIA”. So I request you to invest your
valuable time in filling up this questionnaire and help me in successful completion of
my work. The responses will be kept confidential and used for academic purpose
only.

1. Name :

2. Gender
- Male - Female

3. Age
-22 to 28 years - 29 to 38 years
- 39 to 48 years - over 49 years

4. Qualification
-Graduate -Postgraduate

5. Designation

-Manager -Banking Assistant

-Assistant Manager -Banking Trainee

- Other

6. Work Experience
-0 to 2 years - 2 to 4 years
- 4 to 6 years above 6 years

SREE NARAYANA INSTITUTE OF TECHNOLOGY, ADOOR 71 | P a g e

7. Which is your bank?

8. Do you believe whether banks are using green system in their day to
day operations?

- Yes - No

9. Do your bank took any initiative to become a green bank?

- Yes - No

10. If yes, what all are the green initiatives taken by your perspective bank?

- Paperless Banking - Mass Transportation

-Carbon Credit Business -Energy Consciousness

- Social Responsibility -Other

Mention if any

11. Does your bank faced any challenges in implementing green banking initiatives?

-Yes - No

12. If yes, what are the challenges?

-Startup Face - High Operating Cost

-Credit Risk -Reputational Risk

- Other

Mention if

any
 13. Does your bank taking active participation in educating customers about green
banking?

- Strongly Agree -Agree

- Undecided - Disagree
- Strongly Disagree

14. Do you believe green banking is important for sustainable development?

- Yes -No

15. Banks are actively organizing awareness campaigns to educate stakeholders on role
of green banking for the sustainable development of India?

-Strongly Agree -Agree

- Undecided - Disagree

- Strongly Disagree

16. Does your bank provides training and education to the staff on
environmental protection and energy savings?

- Always - Sometimes

-Often -Rarely

- Not at all

17. Does your bank uses e-waste management practices?

-Strongly Agree -Agree

- Undecided - Disagree

- Strongly Disagree
18. Does your bank provides loan to environmental protection and energy saving
related projects?

- Always - Sometimes

-Often -Rarely

- Not at all

19. Does your bank involves in setting up green branches (energy efficient
buildings/ green buildings)?

-Strongly Agree -Agree

- Undecided - Disagree

- Strongly Disagree