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Future Of Green Financing - Banking Customer’s Perspective

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Madhya Bharti (मध्य भारती) UGC Care Group I Journal
ISSN: 0974-0066 Vol-82 No. 14 July – December: 2022
FUTURE OF GREEN FINANCING - BANKING CUSTOMER’S PERSPECTIVE

Dr. Shaifali Mathur, Assistant Professor, Department of Financial Studies, IIS (deemed to be
University), Jaipur
Dr. Ankita Chaturvedi, Associate Professor, Department of Accounting and Taxation, IIS (deemed
to be University), Jaipur.

ABSTRACT
Today, all sectors of the global economy are facing greater challenges in protecting the environment
for sustainable development. The financial sector particularly banks are not lagging behind in this
endeavour. Banks are offering financial instruments whose proceeds are used to fund the
development of environmentally friendly projects, products, and policies. Such financing is known
as Green Financing. The study aims to explore the awareness of Green financing among the Banking
customers and the future potential of green finance product and services. To increase the acceptance
of green financing instruments in the future, it is critical to understand how well existing investors
are aware of these new investment tools. The current study reveals that there is a significant impact
of awareness and customer’s perception about the benefits of green financing instruments on the
future potential of green products and services. Also the awareness, benefits and future potential vary
according to their demographic factors under study.
Keywords: Green Financing, awareness, benefits, willingness, future potential

1. INTRODUCTION
In the times when global warming, increasing water levels in seas and oceans, depletion of ozone
layer and many more such problems have engulfed the entire world, (Khandelwal A R., Chaturvedi
A). These problems have gained attention of government and regulators towards protection of the
environment. Financial Institutions are non-lagging behind in saving the environment through Green
Financing (Sushma B S). The upgradation of industries for environmental protection and the growth
of strategic green emerging industries necessitate strengthening of the financial sector of the
economy. To serve as a leader in climate action, sustainable development, and green recovery, the
financial sector has developed strategies and innovative measures to ensure adequate capital is made
available for projects with social and environmental benefits while gradually diverting funds away
from unsustainable projects and industries with huge negative impacts on the environment and
mankind, particularly those that exacerbate climate change. Green finance is one such innovative
concept that is aligned with the financial sector's responsibility in meeting today's mega challenges in
a way that ensures both business and societal value creation while minimising environmental impact
(Thomson, 2021)."Green finance" refers to financial investments in sustainable development projects
and initiatives, environmental products, and policies that promote the development of a more
sustainable economy ( Hohne, Khosla , Fekete, Gilbert 2012). The term Green Finance and Green
Financing can be used interchangeably.

The financial sector is critical in enabling humanity to overcome these massive problems. It is
insufficient to simply develop the technologies and policy frameworks required to address the
environmental issues. Inadequate financial resources to scale these solutions for priority action areas
are a major impediment to managing these problems and ensuring inclusive and sustainable growth
for all (Rupsha Bhattacharyya). Financial institutions have formulated various products and services
that lead to the protection of the environment by offering benefits to their customers on adoption of
these products. Green Financing is any structured financial activity- a product or service that has
been created to ensure a better environmental outcome. It means providing the customers with the
inclusive banking services which will ensure sustainable economic development. It consists of
different types of loans, debt mechanisms and investment options that encourage customers and
investors to purchase and invest in the green projects to reduce the environmental effect of projects.
Energy generation from renewable sources such as solar, wind, and biogas are examples of
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environmentally sustainable projects. Green financing not only helps in preventing but also
minimising and compensating damages made to the environment and to the climate.
In India, Green Financing is an emerging concept. Many commercial banks provide Green Financing
products and services (like Green Deposits, Green Bonds, Green Loans etc.) and also offer loans for
the development of sustainable projects.
Green financing is increasing in India at a very low pace. Awareness about green financing is not
satisfactory. Customers are progressively expressing their interest in acquiring and investing in green
products and projects. Banks in India are supporting in increasing awareness by providing loans for
investment in green projects and aiding in availing green products and services. Few banks and firms
have started offering green bonds for raising money for environment friendly projects, but high cost
of issuing the Green bonds restrict investors hesitate to invest a large sum in green bonds.
The following chart showcases the different means of Green Financial Investments made in India.

SOURCE: CPI Discussion Brief

2. LITERATURE REVIEW
Though Green finance is playing a pivotal role to prevent and reduce environmental damages still
very less number of individuals know about its concept and the green products and services provided
by the banks. It also helps to accelerate the transition to a low-carbon society by creating and
promoting more socially inclusive growth. But here the question is how many banking customers
know about green financing, what are the factors that influence customers to use Green Financing
services? Are the banking customers willing to avail the various Green Financing Products and
Services?
With an increasing significant role of green financing toward making the environment better and
healthy. It not only benefits the environment but also assists in the growth of an economy through
Green Investments. Some research papers by various authors concluded that green finance practice
provides a way to understand the vision of environmental conservation in today's environmentally
degrading conditions. Several researchers are working in the area of Green Finance. Some significant
contributions are weighted and reviewed. Ali A., Seshachalam A (2020) identified how Green
Finance has become the need of the hour in the swiftly changing market economy where the Indian
banks are running behind time. They commended the financial sector to focus upon ecological
expansion with the help of Green Finance. B S Sushma (2021) contemplated the features of Green
Banking, Bonds and Green Insurance as a part of Green Finance and judged the positive and
negative impacts of Green Finance on developing countries like India and recommended the
development of an effective regulatory framework and making the general public aware about such
emerging concepts for sustainable developments. Bhattacharya R (2021) explores Green Finance
as a tool for energy transition, climate action and sustainable development. The study assessed the
various instruments of green finance utilized for financing various projects. B S Keerthi (2013) in
their study identified the barriers and obstacles to Green Financing and also displayed the recent
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practices and the future scope of Green Finance in India. They listed a few Green Projects and
advised on framing effective policies to establish a smooth working of Green Finance System. They
also observed that the current policies and procedures are not sufficient. Cheberyako O V,Varnalii
Z S, Bornysenko O A & Miedviedkova N S (2017)has undertaken the study Green Financing as a
Modern Tool for Social and Economic Security and analysed the theoretical approaches to the nature
of Green Finance and the influence and significance of green finance on social and environmental
security. Datta R & Mohajan K H, Chowdhary U T (2013) detected that Green Finance is a
dynamic way of sustainability in the future but India is lagging far behind from the other economies.
They also recommended to make consumers aware and to blend policies to modify the current
system. Frimpong I, Adebah D, Ofosu D & Tenakwah E (2020) reviewed and analysed the
existing studies on Green Finance and provides a guide for future studies. They explored a few
determinants of Green Finance of Banks like Banking sector regulations, Interest rates, Technology
and Innovation etc. The study suggested banks to build financial inclusion and contribute to
innovative financial products and strengthen the corporate sustainability. Ghosh S, Nath S
&Ranjan A (2021) conducted their research on Green Financing in India: Progress and Challenges.
The authors analysed the growth of Green Financial practices in global market and in India. The
research also identified the challenges in the path of the growth of Green Financing in India like the
costs of issuing Green Bonds, an unbalanced information system, small and underdeveloped market
infrastructure. He Z , Liu Z ,Wu H,Gu X ,Zhao Y& Hue X (2020) studied the Impact of Green
Finance and Fintech in SmartCities. In this study the researchers realised how Green Finance
promotes construction of smart cities and contributes to Green credit. The researcher identified that
the development of Green Finance depends on financial intermediaries and incomplete sharing of
information by financial institutions considered to be the greatest hindrance in successful
implementation of green practices. Jain S (2020) have undergone qualitative research and analyzed
the working and effective implementation of financial strategy towards Green Finance. It also
highlighted the opportunities in Capital Market and Retail Markets. Babita J & Priti B in their paper
surveyed numerous initiatives for Green Financing taken by the Public and Private Banks/
organisations. The study also displayed various challenges in the field of Green Finance in India and
concluded and suggested the requirements for mixed finance which would reduce the overall cost of
capital of Private capital investors and recommended that the government should lay down a clear
Green Investment Strategy which concentrates on long term economic growth. Jayathilake S (2019)
identified a relationship between Green finance and corporate governance and that the
implementation of green finance concept in banks would facilitate an increase in shareholder’s value.
Kharade M (2021) examined the importance, constraints and government initiatives for green
finance. Study aimed at increasing awareness of private investors regarding their role in
sustainability and recommended the Government of India to pursue a clear long term green
investment policy which is transparent and more favourable to investors and attracts both local and
international investors. Kaushal K V & Mohammad S (2018) conducted research on Green
Financing: A step towards sustainable development. The authors in this paper have attempted to
survey the scope of Green Finance in India and examined some projects and initiatives like The
Equator principles, UN Global Compact, Carbon Disclosure Project etc. and study the working of
Green Finance and concluded that there is a need to create a Green Infrastructure for execution of
Green Finance in India. Khan I K , Mata N M, Martins J M, Nasir A ,Dantas R M,Correia &
Saghir M U (2022) identified that the lack of pressures from global organisations and unavailability
of globally acceptable green products limit the global adoption of green financing .The study used
the techniques like ISM, SSIM to interpret results and the framework was developed on expert’s
opinion. Mohammad M & Orabi A (2020) studied the extent of awareness regarding Green
Financing among Jordanian Commercial Banks from the perspective of investment department
managers and identified a good level of awareness and understanding regarding Green Finance.
Maheshwari A, Bergedieck L, Ugaz A Fransicso (2017) identified and analysed steps (short term
and medium term) to develop a comprehensive system to track Green Finance. It also highlighted
some additional works that are needed to make Green finance more accountable and visible. Ozili P
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Madhya Bharti (मध्य भारती) UGC Care Group I Journal
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(2022) assessed the challenges and analysed that green finance has the potential that can make
difference in the environment and the society. The research was mostly based on the secondary data
viz. existing literatures . Rawat S & Anu (2020) investigated recent advances in Green Finance.
They also observed the lack of interest in Green Finance and also the absence of effective
Government Policies in this area. The study observed a good increase in efforts made by western
countries and institutions in the field of Green Finance. Sinha Jolly, Jain Shreyans, Padmanabhi
Rajshree (2020) in their study on landscape of Green Finance in India have studied the sources ,
intermediaries of the Green Finance at both international and domestic levels, purpose for purchasing
the finance. The study included primary investments at project levels and lacks the individual
customer’s perception towards such projects. Sai A & Reddy B (2018) aimed at discussing the
significance and various initiatives by the Government of India in the field of Green Finance. The
researchers were in the opinion that by making private investors aware about their role in
sustainability green financing can be enhanced. They recommended the Indian Government to bring
a stable policy framework in Green Financing to motivate and attract the private sector to finance
sustainable development programs. Soundarrajan P & Vivek N(2016)Green Finance for
sustainable green economic growth in India. The paper analysed the recent trends and future scope
and challenges in Green Finance in fast growing and developing countries like India. Zheng, G.W.,
Siddik, A.B., Masukujjaman, M.& Fatema, N.(2021)conducted their research on Factors
Affecting the Sustainability Performance of Financial Institutions in Bangladesh: The Role of Green
Finance and identified private commercial banks as the largest contributor to green financing among
banks accounting for 78.12% of total green financing in Bangladesh. Orabi M A A (2020) studied
The Extent of Awareness Regarding Green Financing among Jordanian Commercial Banks from the
Perspective of Investment Department Managers and demonstrated that there is an acceptable level
of awareness about the concept of green financing among the bankers The results of the study
indicated that the government is the first and most important supporter of green financing in banks;
formulation of legislations and its effective implementation is supporting foreign investment in
environmental projects, in addition to supporting banks in their approaches to financing green
investments. Smriti U, Paliath R & Dhanuka H (2019) studied awareness of Green Financing
among the Youth in Bangalore to explore the awareness about green finance among the students and
discovered that students are unaware about the concept of green financing but they are interested to
avail such green finance instruments in future. Zhu W, Zhu Z, Fang S& Pan W (2016) in their
study on Chinese Students’ Awareness of Relationship between Green Finance, Environmental
Protection Education and Real Situation emphasises the importance of the environment have found
that academics are becoming more fascinated about green financing as environmental awareness
grows. The result found a significant difference between their awareness in concept, methods,
reasons, and purpose and representative principles of green finance. Thomas J, Linson S (2018)
have conducted their research on customers’ Awareness and Adoption of Green Banking In
Thrissur District and investigated the extent of awareness and adoption of green banking among the
banking customers, the results shows that majority of the customers have awareness of green
banking practices of a bank. Parnami P, Mathur S (2022) concluded in their research that despite
investor awareness of cryptocurrency, few investors are willing to adopt cryptocurrency as an
investment alternative due to security concerns, lack of regulations and a lack of trading knowledge.
However, people are willing to invest in the near future once a clear picture of cryptocurrency
regulation is established. Popescu Gh. Cristina, Popescu &Gheorghe N. (2019) establishes the
relationship between corporate social responsibility, intellectual capital and performance of
Romanian businesses. Results of the study reveals that Romanian entities operate on a socially
responsible level and they understand the importance and benefits of both corporate social
responsibility and intellectual capital in terms of increasing profit, productivity, and performance.

3. RATIONALE OF THE STUDY

Literature reviews suggested that most of the studies are based on theoretical aspects of the
development of green financing, opportunities, challenges and various initiatives undertaken by
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public and private institutions and banks in India. Some of the studies focused on the awareness of
green financing among the banking employees, many research conclusions are based on the
published information and data and reveals that green financing is more popular in the foreign
financial market, hence, this research is conducted to investigate the potential of green financing and
willingness of banking customers to adopt green financing products and services in the Indian
financial system (banking). Green Financing is among the emerging investment and financing
patterns that give priority to the environment as well as society. Therefore, it is important to know
how much awareness there is among the banking customers about green financing products and
services and if they are willing to adopt those financial instruments for sustainable development and
environmental fortification.

4. METHODOLOGY AND DATA SOURCES

The study is empirical in nature. Aim of this qualitative research is achieved by constructing a
questionnaire. The questionnaires were distributed to the 310 customers of the HDFC Bank Ltd and
ICICI Bank Ltd to achieve the desired objective out of which 250 questionnaires were retained after
data cleaning. These private and public sector banks (HDFC Bank Ltd and State Bank of India Ltd)
have been selected on the basis of their market capitalization. Sample frame for the study consist of
the selected North Indian States and their districts (selected on the basis of maximum number of
Bank’s branches) chosen on the basis of Multi Stage Cluster Sampling technique. Samples have been
taken from the districts of Uttar Pradesh, Rajasthan, Punjab, Haryana and Delhi according to the
Convenient Sampling method.
4.1 OBJECTIVES OF THE STUDY
● To find the awareness level of customers towards Green Financing
● To study the customer perception regarding the benefits of Green Finance
● To analyse the impact of awareness and benefits of green financing on willingness to invest in green
finance product and services in future
● To examine the effect of age, education and occupation on the awareness and benefits of green
financing
4.2 HYPOTHESES OF THE STUDY
H01: There is no significant impact of awareness and benefits of green financing on the Future
potential of Green Finance.
H02: There is no a significant effect of age, education and occupation on the awareness and benefits
of green financing.

4.3 THEORETICAL FRAMEWORK OF THE STUDY BASED ON HYPOTHESIS 1

Independent Variables Dependent Variable

Awareness about Impact

green financing Future Potential of Green
Financing

Benefits of Impact
Investment in Green
Financing

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4.4 THEORETICAL FRAMEWORK OF THE STUDY BASED ON HYPOTHESIS 2
Independent Variables Dependent Variable

Age of Awareness
Respondents

Benefits
Education of
Respondents

Occupation of
Respondents Future Potential

4.5 TOOLS FOR DATA ANALYSIS

Weighted mean values of awareness and factors influencing the usage of green financing products
and services were calculated. Rank analysis method on the mean values is applied to find out the
most aware green financing product or services as well as the prominent benefit regarding Green
Financing based on the customer perception.
For testing the hypothesis of the study, the first normality test was conducted. Kolmogorov–Smirnov
test is applied on variables under study using SPSS 22 software .Kolmogorov–Smirnov test’s sig.
value is found to be near about 0.200 which is greater than 0.05 level of significance. Hence, the
Normality test suggested that data collected is normally distributed. As a result, parametric
MANOVA test and Regression analysis are used to test the hypothesis.

5. RESULTS AND DISCUSSIONS

Table 5.1: Awareness level of customers towards Green Financing
Extremely Awar Neutral Not Not aware Weighted Rank
AWARENESS Aware e Aware at all Average
Response
Green Deposits 60 68 46 54 22 3.36 1

Green Bonds 37 72 47 62 32 3.08 4

Green Vehicle 55 50 65 48 32 3.19 2

Loans
Green Insurance 41 67 45 72 25 3.11 3

Source :Self made using SPSS Software

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It is observed that majority of the respondents are aware of the Green products. They are more aware
about the green deposits and green vehicles loans. The respondents are least aware of the green
bonds.
Table 5.2: Customer perception regarding the benefits of Green Finance
Strongly Agree Neutral Disagree Strongly Weighted Rank
BENEFITS Agree Disagree Average
Response
Promotion of Green 78 41 30 58 43 3.212 2
Initiatives
47 52 42 67 42 2.98 4
Lower cost of
funding
Channelization of 36 59 57 70 28 3.02 3
Domestic Savings
into development
financing
75 52 55 27 41 3.372 1
Tax benefits

Contribution to 43 50 52 67 38 2.972 5
environment friendly
practices
Source :Self made using SPSS Software
The above table depicts the customer perception about the benefits of Green Finance Products and
Service. The bank customers strongly agrees that the tax benefits is most important for getting by
these green product and services, followed by Promotion of Green Initiatives and Channelization of
Domestic Savings into development financing. Very few customers agrees that Lower cost of
funding and Contribution to environment friendly practices are the benefits of green financing.
5.1 MULTIPLE REGRESSION
Multiple regression is used to analyse the impact of independent variables (awareness and benefits of
green financing) on the dependent variable (willingness to invest in green finance product and
services in future)
Table 5.3:Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate
1 .619a .383 .378 .873

a. Predictors: (Constant), Awareness, Benefits

It is evident from table that R2 value is 0.383. It shows that Awareness and Benefits of Green
Finance (independent variables) explain 38.3% of the banking customers willingness to invest in
green finance products and services in future (dependent variable).
Table 5.4: ANOVAa

Model Sum of Df Mean Square F Sig.

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Squares

1 Regression 116.927 2 58.464 76.685 .000b

Residual 188.309 247 .762

Total 305.236 249

a. Dependent Variable: Future Potential of green products and services

b. Predictors: (Constant), AWARENESS, BENEFITS

Table 5.5: Coefficientsa

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta T Sig.

1 (Constant) .719 .203 3.546 .000

AWARENE .659 .057 .580 11.564 .000

SS

BENEFITS .185 .056 .167 3.327 .001

a. Dependent Variable: Future Potential of green products and services

The F-test result computed using SPSS in the form of ANOVA table are shown in Table 5.4. It tests
whether the overall regression model is a good fit for the data. The null hypothesis in this test is “The
model does not fit in the data”. The p-value of the F-test is less than 0.05. It means that test is
significant and null hypothesis is to be rejected at 5% level of significance. Therefore the final linear
regression equation is as follows:
Future Potential of green products and services = 0.719 + 0.659 (Awarenees) + 0.185 (Benefits)
Unstandardized regression coefficients, including the constant term of regression model, which are
represented in Table5.5 indicate the variation level of dependent variable with an independent
variable when all the other independent variables are held constant. On the basis of the output, we
can conclude that ‘Future Potential of green products and services’ is depending on awareness and
benefits of green finance product and services. Table 5.5 depicts that the unstandardized regression
coefficient of awareness is 0.659 and benefits is 0.185. The significance value is less than 0.05,
which means that the model is good fit for the data. Thus, the Null hypothesis is rejected, and there is
a significant impact of awareness and benefits of green financing on the Future Potential of green
products and services.
5.2 MULTIVARIATE TESTS
The one-way multivariate analysis of variance (one-way MANOVA) is used to determine whether
there are any differences between independent groups on more than one continuous dependent
variable.
Table 5.6: Box's Test of Equality of Covariance Matricesa

Box's M 74.798

F 1.194

df1 54

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df2 2369.330

Sig. .159

a. Design: Intercept + AGE + EDUCATION+ OCCUPATION+ AGE *

EDUCATION+ AGE * OCCUPATION+ EDUCATION* OCCUPATION+ AGE *
EDUCATION* EDU_BACKGRD
TheBox's Test of Equality of Covariance Matrices determines whether the variance is the same
or not among dependent variables. More specifically, it tests if two or more covariance matrices
are equal (homogeneous). The assumption of MANOVA is to not have heteroscedasticity in the
model. Table shows the p-value > 0.05, indicating the homogeneity of covariance. Therefore, the
assumption is true and Wilks' Lambda Trace is the appropriate test to use.
Table 5.7: Multivariate Testsa

Effect Value F Hypothesis Error df Sig. Partial

df Eta
Squared

Intercept Pillai's Trace .848 671.123b 3.000 360.000 .000 .848

Wilks' Lambda .152 671.123b 3.000 360.000 .000 .848

Hotelling's Trace 5.593 671.123b 3.000 360.000 .000 .848

Roy's Largest 5.593 671.123b 3.000 360.000 .000 .848

Root

AGE Pillai's Trace .017 1.053 6.000 722.000 .390 .009

Wilks' Lambda .983 1.053b 6.000 720.000 .390 .009

Hotelling's .018 1.052 6.000 718.000 .390 .009

Trace

Roy's Largest .015 1.823c 3.000 361.000 .143 .015

Root

EDUCATION Pillai's Trace .016 .646 9.000 1086.000 .758 .005

Wilks' Lambda .984 .644 9.000 876.296 .760 .005

Hotelling's Trace .016 .642 9.000 1076.000 .762 .005

Roy's Largest .010 1.254c 3.000 362.000 .290 .010

Root

OCCUPATION Pillai's Trace .025 1.005 9.000 1086.000 .434 .008

Wilks' Lambda .975 1.006 9.000 876.296 .433 .008

Hotelling's Trace .025 1.006 9.000 1076.000 .433 .008

Roy's Largest .022 2.604c 3.000 362.000 .052 .021

Root

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AGE * Pillai's Trace .017 1.046 6.000 722.000 .394 .009
EDUCATION
Wilks' Lambda .983 1.045b 6.000 720.000 .395 .009

Hotelling's Trace .017 1.045 6.000 718.000 .395 .009

Roy's Largest .015 1.808c 3.000 361.000 .145 .015

Root

AGE * Pillai's Trace .008 .328 9.000 1086.000 .966 .003

OCCUPATION
Wilks' Lambda .992 .327 9.000 876.296 .966 .003

Hotelling's Trace .008 .325 9.000 1076.000 .967 .003

Roy's Largest .005 .650c 3.000 362.000 .583 .005

Root

EDUCATION Pillai's Trace .036 .879 15.000 1086.000 .588 .012

*
OCCUPATION Wilks' Lambda .964 .878 15.000 994.203 .590 .012

Hotelling's Trace .037 .876 15.000 1076.000 .591 .012

Roy's Largest .023 1.674c 5.000 362.000 .140 .023

Root

AGE * Pillai's Trace .032 1.285 9.000 1086.000 .240 .011

EDUCATION
* Wilks' Lambda .969 1.287 9.000 876.296 .240 .011
OCCUPATION
Hotelling's Trace .032 1.288 9.000 1076.000 .239 .011

Roy's Largest .026 3.167c 3.000 362.000 .025 .026

Root

a. Design: Intercept + AGE + EDUCATION + OCCUPATION + AGE * EDUCATION+ AGE *

OCCUPATION+ EDUCATION* OCCUPATION+ AGE * EDUCATION* OCCUPATION

b. Exact statistic

c. The statistic is an upper bound on F that yields a lower bound on the significance level.
The above is the MANOVA using Wilks' Lambda Test. Wilks' Lambda is a positive-valued
statistic. Increasing values of the statistic indicate effects that contribute more to the model. The p
value < 0.05, indicates a significant effect of age, education and occupation on awareness, benefits
and future potential of green financing. The p value in case of age = 0.009, education = 0.005 and
occupation = 0.008 is less than 0.05, hence we can conclude that there is a significant relationship
between the variables.When we check the combined effect of age and education on the dependent
variables , p value = 0.09, this means that the effect of the education on the dependent variables is
not the same for all age groups. When we check the combine effect of age and occupation on the
dependent variables, it is found that p= 0.03 which is < 0.05, therefore we can say that the effect of
occupation on the dependent variables is not same across all age groups. When we check the
combined effect of education and occupation, p= 0.012 which is less than 0.05, it means that the
effect of occupation on the dependent variables is not same for all the education groups. And when
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we check the combined effect of all the three independent variables, it is not found to be significant
as p=0.011 which is <0.05, means there is a significant effect of age, education and occupation on
the combined dependent variables.
Table 5.8: Tests of Between-Subjects Effects

Type III Partial

Sum of Mean Eta
Source Dependent Variable Squares df Square F Sig. Squared

Corrected AWARENESS 11.281a 21 .537 1.503 .073 .080

Model
BENEFITS 11.119b 21 .529 1.246 .210 .067

FUTURE 15.244c 21 .726 .880 .618 .049

POTENTIAL

Intercept AWARENESS 500.572 1 500.572 1400.316 .000 .795

BENEFITS 447.291 1 447.291 1052.311 .000 .744

FUTURE 415.299 1 415.299 503.371 .000 .582

POTENTIAL

AGE AWARENESS 1.914 2 .957 2.677 .070 .015

BENEFITS .169 2 .084 .199 .820 .001

FUTURE .768 2 .384 .466 .628 .003

POTENTIAL

EDUCATION AWARENESS .623 3 .208 .581 .628 .005

BENEFITS .849 3 .283 .666 .574 .005

FUTURE 2.001 3 .667 .808 .490 .007

POTENTIAL

OCCUPATION AWARENESS 1.259 3 .420 1.174 .319 .010

BENEFITS 1.976 3 .659 1.549 .201 .013

FUTURE 3.285 3 1.095 1.327 .265 .011

POTENTIAL

Error AWARENESS 129.404 362 .357

BENEFITS 153.870 362 .425

FUTURE 298.662 362 .825

POTENTIAL

Total AWARENESS 8401.000 384

BENEFITS 7638.000 384

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Madhya Bharti (मध्य भारती) UGC Care Group I Journal
ISSN: 0974-0066 Vol-82 No. 14 July – December: 2022
FUTURE 6506.000 384
POTENTIAL

Corrected Total AWARENESS 140.685 383

BENEFITS 164.990 383

FUTURE 313.906 383

POTENTIAL

a. R Squared = .080 (Adjusted R Squared = .027)

b. R Squared = .067 (Adjusted R Squared = .013)

c. R Squared = .059 (Adjusted R Squared = .007)

Because the MANOVA was significant we will now examine the univariate ANOVA results. To
determine how the dependent variable, differ for the independent variable, Test of Between-
Subjects effect is checked. It is observed that age, education and occupation, all three has a
statistically significant effect on awareness, benefits and willingness to invest in green products and
services as p value < 0.05 .The R square statistics below the table is more than 0.5 in all the three
independent variables , it means that there is possibly no linkage between variables.

6. CONCLUSION
Green finance has emerged as a global concern in the context of long-term economic and financial
development. Today the world is concerned about environmental change. We need to identify
potential green projects for more sustainable development. For this there is a need to increase
investment in green projects through green financing. To increase investment through green
financing for environment protection there is a need to generate awareness among the banking
customers regarding green products and services. The findings of the study resulted in showing that
the majority of the customers are aware of the Green products and services. They consider tax
benefits as the most popular benefit of investing in green products and services. The multiple
regression shows the significant impact of awareness and benefits of green financing on the
willingness to invest in green finance products and services in future. The multivariate test using
Wilk’s Lamda statistics and univariate ANOVA results both show a significant effect of age,
education and occupation on awareness, benefits and future potential of green financing.
Green financing offers investors an elusive market to invest while promoting sustainable
development. We can help the economy and the environment grow by taking effective measures to
raise awareness of these financial instruments. There are some boundaries to this study which are
explained here after. The study is based on only 250 respondents' views, hence. it would be
suggested to supplement the research by taking a larger sample size. Secondly, only one public and
private sector bank is considered in the study. Therefore, it is recommended to take all commercial
private and public sector banks to have a wider vision of the problem and discussion. Moreover, the
current study has considered only a few variables i.e. awareness, customer perception regarding the
benefits of Green Finance, future potential of green financing, and the demographic factors of the
respondents. Future research can include some more variables like the attitude of people, perception
of people towards green financing products and services as an investment option, factors influencing
financing of green products and services, government regulation, environmental concern of people,
etc., to get a better insight about this topic.
Also, Banks should make their customers aware about Green Financing with the help of Brochures,
Advertisements etc. Banks can also adopt a few measures to attract customers to purchase Green
Finance products and services like reducing interest rates on loans for green projects, providing
subsidies for developing environmentally friendly products and projects, encouraging companies to
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 Madhya Bharti (मध्य भारती) UGC Care Group I Journal
ISSN: 0974-0066 Vol-82 No. 14 July – December: 2022
manufacture products and set up green projects like solar panels, water management systems etc. by
offering them loans. Monetary authorities can also make amendments in the guidelines and
framework of providing finance for Green and sustainable projects to their customers to increase the
Green financing which would help in increasing awareness and investments in the area of sustainable
finance and will eventually lead to the growth.

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