SYNOPSIS REPORT

“Customer’s Awareness & Perception on Green Banking

Initiatives in SBI Bank with reference to Kamrup District”

INDIAN INSTITUTE OF BANK MANAGEMENT

A synopsis report submitted in partial fulfilment of the requirements for the award of
the Degree of Master of Business Administration (MBA), in NERIM Group of
Institutions under Dibrugarh University & Approved by AICTE

Submitted by
JYOTIRMOY DAS
MBA 3rd Semester
Roll No: 91/23
Session: 2022- 2024

UNDER THE GUIDANCE OF

ORGANISATIONAL GUIDE INSTITUTIONAL GUIDE

Dr. Abhijit Sharma Mr. Basu Mandal

Assistant Professor (Dept. of

Senior Professor
Business Administration)
INDIAN INSTITUTE OF BANK NERIM Group of Institutions
MANAGEMENT (IIBM)

NERIM Group of Institutions

Padma Nath Sarmah Bhawan
Joyanagar, Khanapara, Guwahati - 781022
 CONTENTS

CHAPTER NO. CONTENTS PAGE NO.

Declaration

Chapter -1 Introduction
 About the Institution
(IIBM)

Chapter - 2 Research and Methodology

 Title of the Project
 Introduction
 Concept of Green
Banking
 History of Green Banking
 Green Banking in India
 Products/ Services
 Features of Green
Banking
 Benefits of Green
Banking.
 Literature Review
 Objective of Study
 Scope of Study
 Area of Study
 Sources of Data
 Reference Period
 Plan of Analysis
 Limitations of Study

Biblography
Questionnaire
 DECLARATION

I, JYOTIRMOY DAS, student of MBA 3rd Semester of NERIM Group Institutions, hereby
declare that this project entitled “Customers' Awareness & Perception on Green Banking
Initiatives in SBI Bank with reference to Kamrup district” is prepared by me during the
period of “July – August 2023” and is submitted in partial fulfilment of the requirements for
the award of the Degree in Master of Business Administration (MBA) of Dibrugarh
University.

This project report has not been submitted earlier for the award of any other Degree/Diploma
from Dibrugarh University or any other university.
 CHAPTER-1

ABOUT THE INSTITUTION

(COMPANY PROFILE)

INDIAN INSTITUTION OF BANK MANAGEMENT (IIBM)

Indian Institution of Bank Management (IIBM), Guwahati (erstwhile North Eastern

Institution of Bank Management (NEIBM) was established and registered as society in 1980.
It is an autonomous institute mandated to meet the capacity building imperatives of Bank &
Financial Institution, especially from the North Eastern Region of India.

Indian Institute of Bank Management (IIBM), is sponsored by Reserve Bank of India,

NABARD, State Bank of India, Union Bank of India, UCO Bank, Central Bank of India and
Indian Bank. The Deputy Governor Dr. M.D Patra is the chairman of the Governing Board of
IIBM, Guwahati.

The institution is directed by Shri Eugene E Karthak who is a former Executive Director,
Reserve bank of India and the institute has the 5 faculty members
Dr. Abhijit Sharma
Dr. Pinky Dutta
Shri A K Bajpai
Shri P karPurkayastha
A K Bhattacharja

IIBM as s unit sponsored by banking system for meeting the capacity building needs has been
focusing on training, research and consulting in banking and related areas, IIBM has
experienced faculty from industry & academia to bring both conceptual & operational
dimensions of banking to its training initiatives, Apart from focus on functional areas, IIBM
also believes that leadership development at different levels in a financial intermediary on
competitive market is of utmost importance.
Therefore, at IIBM the focus on leadership development has become sharper now than ever
before. The unique feature of IIBM Guwahati has been its ability to draw working executives
as resource persons from banks, financial institution, RBI, NABARD and Government
Department and so to enhance the quality of training programs.
IIBM is located at Guwahati, Assam, the gateway to picturesque North Eastern states of
India. Situated on the banks of the mighty river Brahmaputra, Guwahati is home to the
famous Kamakhya Temple, Eastern Balaji temple and SankardevKalakhetra.
The institute has its own campus in the Khanapara institutional area of Guwahati and has
facilities like the state of the art classroom, Wi Fi campus, conference rooms, hostel with
well-appointed AC rooms and well-stocked library.
 CHAPTER-2

Topic-“Customers' Awareness & Perception on Green Banking Initiatives in SBI Bank

with reference to Kamrup district”

1.1 INTRODUCTION
Green banking is emerging concept for environment sustainability it means promoting
environment friendly practices for sustainable growth and reduces the carbon footprint from
the banking industry. Using online banking instead of branch banking, paying bills online
instead of mailing them, opening online bank account are now added advance to the banking
technology or contributing the environment sustainability..
Green Banking means promoting environmental-friendly practices and reducing carbon
footprint from banking activities. Using online banking instead of branch banking. Paying
bills online instead of mailing them. Opening up CDs and money market accounts at online
banks, instead of large multi-branch banks.
"Earth provides enough to satisfy every man's needs, but not every man's greed."
--Mahatma Gandhi
Banking sector is generally considered as environment friendly in terms of emission and
pollutions. Internal environmental impact of the banking sector such as use of energy, paper
and water are relatively low and clean. This is 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 Consumers, banks, industries and the economy. For
consumers this shift towards green banking means that more deposit and loan products will
be available through online and mobile banking. It also means better deposit rates on CDs,
money market accounts and savings accounts. Green banks should also have lower fees and
give rate reductions on loans going towards energy efficient projects. This is banking beyond
pure profit. Another important aspect of green banking is the involvement and outreach from
the individual banks to their local community.
1.1.1 CONCEPT OF GREEN BANKING
Green banking is a banking practice that promotes environmentally friendly practices and
reduces the carbon footprint of banking activities. It is also known as ethical banking or
sustainable banking. Green banks consider all the social and

Environmental/ecological factors with an aim to protect the environment and conserve

natural resources.
Green Banking can be implemented by a proper use of technology. The various ways in
which banks have adopted through this wave of change are:
• Sending payment slips, reimbursement slips electronically.
• Online Net Banking System.
 Paying bills online.
• Opting for Mobile Banking.
 Paper Recycling.
• ATM.
• Green Checking Accounts.
• Conduct meeting through Video Conferencing

1.1.2 HISTORY OF GREEN BANKING

Green Banking is any form of banking from that the country and nation gets environmentally
benefits. An orthodox bank becomes a green bank by directing its core operations toward the
betterment of environment. The banking sector can play an intermediary role between
economic development and environment protection by promoting environmentally
sustainable and socially responsible investment. The concept of green banking was developed
in the western countries. Green Banking was formally started in 2003 with a view to
protecting the environment. Then the Equator Principles (EPs) were launched and were
initially adopted by some leading global banks, such as Citigroup Inc, The Royal Bank of
Scotland, Westpac Banking Corporation. In March 2009, Congressman Chris Van Hollen of
USA introduced a Green Bank Act with the aim of establishing a green bank under the
ownership of the US government. After introduce the Green Banking initial decision was to
minimize the paper use in banking works because to make all kinds of papers need to cutting
trees as raw materials (its minimize the green forestation) and for this reason naturally its
reduce the Oxygen and increase the carbon-dioxide in airspace/ globe .There are two ways of
green banking practices. One is in-house green banking; another is practice by the bankers in
their business area. Creating clean and hygienic banking environment, green building.
Reforestation, online banking, waste management, installation of solar panel on the rooftop
of the bank and using high mileage vehicles, reducing sound pollution, sing webcam for
video conferencing instead of physical meetings, online statements, emailing documents are
included in the in-house Green Banking.

Financing the green projects like Bio-gas Plant, Solar/Renewable Energy Plant, Bio-fertilizer
Plant, Effluent Treatment Plant (ETP), Projects having ETP etc, working on specific green
projects, voluntary activities of banks are major practices by the bankers in their business
areas. Green banking undertakes proactive measures to protect environment and to address
climate change challenges while financing along with efficient use of renewable,
nonrenewable, human and natural resources.

1.1.3 GREEN BANKING IN INDIA

In recent years, Indian banks have noticed the developing tendency and have significantly
altered their operational tactics. The Indian banking industry has faced numerous problems,
including changes in customer behaviour, technology advancements, regulatory changes, and
so on. It has gone through a series of challenges and has learned to adapt to changing
circumstances. Going green is a new notion in India, and Indian banks have embraced it in a
variety of ways. The following are the different banks in India that offer green banking
services to their users.
 SBI has begun to implement a green banking policy. This is India’s first green
bank, specializing in going green and encouraging green energy Projects.

 Punjab National Bank: They’d made a number of efforts to reduce emissions and
energy use.

 Bank of Baroda: They had undertaken a number of green banking efforts,

including the funding of a commercial project. BOB prefers green initiatives that
are environmentally benign, such as windmills, biomass, and solar electricity,
because they assist in collecting carbon credits.

 Canara Bank has incorporated eco-friendly measures like mobile banking, online
banking, telebanking, and solar-powered biometric processes as part of its green
banking effort.

1.1.4 GREEN BANKING PRODUCTS AND SERVICES.

1.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 pay cheques, receiving electronic statements from
your bank and by paying bills online. All of these steps can drastically reduce the amount of
paper produced by your bank. Online banking and mobile banking are also highly effective
ways to Keep track of your finances and to avoid late payment fees.
2. Paperless Statement:-Sending out bank statement 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 log in. 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.
3.Use Direct Deposit:-Most employers will give employees the option to receive their pay
cheque 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.
4. 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
cheque books and Completely converted to online payments. Not only is the recordkeeping
much Easier, but again massive amounts of paper is saved.
5. 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.
6. Credit and Debit Cards:-Credit card and debit card can be used while Making the
payment of various expenses without caring the money.
7. Electronic fund transfer:-Electronic banking, also known as electronic fund transfer
(EFT), uses computer and electronic technology as a substitute for cheques 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 mobile phone or
personal digital assistant (PDA).

1.1.5 FEATURES OF GREEN BANKING

1. Providing green financial products: Green banks offer a variety of green financial
products, such as green loans, green mortgages, and green savings accounts. These
products are designed to help customers reduce their environmental impact.

2. Adopting green practices: Green banks themselves can adopt green practices, such
as using recycled paper and reducing their energy consumption. This shows their
 commitment to environmental sustainability and encourages their customers to do the
same
3. Promoting sustainable agriculture: Green banks can provide loans and Other
financial products to farmers who are using sustainable agricultural Practices. This
helps to protect our soil and water resources and reduce our Impact on the climate.

4. Financing green infrastructure: Green banks can provide loans and other financial
products to projects that develop or improve green infrastructure, such as parks, bike
paths, and green roofs. This helps to make our cities and towns more livable and
sustainable.

5. Educating customers: Green banks also educate their customers about the
importance of environmental sustainability. They offer workshops, seminars, and
other resources to help customers learn more about green banking and how they can
make a difference.

6. Investment in renewable energy and energy efficiency: Green banks provide loans
and other financial products to businesses and individuals that are involved in
renewable energy or energy efficiency projects. This helps to reduce our reliance on
fossil fuels and promote a cleaner environment

11.6 BENEFITS OF GREEN BANKING

Major benefits of green banking are listed below:-

1. Green banking avoids paper work and makes use of online transactions Such as Internet
banking, SMS banking and ATM banking. Paperless banking helps in controlling
deforestation.
2. Free Electronic Bill Payment
3. Provides loans at concessional rates to environment friendly products and projects
4. Banks can create awareness about benefits of green banking among employees and
customers.
5. Banks around the world are going green by launching environmental Friendly initiatives
and providing innovative green products.
6. Resources can be conserved and utilized in more efficient way by using paperless banking.
7. E-Statement will be generated and sent to the customers’ email.
8. Banking industry can contribute in saving the earth by taking environment Friendly
initiatives.
 9. Green banks gives more importance to environmental friendly factors like ecological
gains thus interest on loan is comparatively less.
10. Generate Clean and hygienic environment Environmental conservation and Protection of
ecological balance.
11. Online account opening form for opening green account. 12.Cash back will be credited to
all new customers, opening “green accounts”.

1.1.7 ADVANTAGES OF GREEN BANKING

1. Basically Ethical 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 paper work means less cutting of trees.
2. Creating awareness to business people about environmental and social Responsibility
enabling them to do a environmental friendly business practice.
3. Use of Online banking instead of branch banking saves time.
4. Green banks adopt and implement environmental standards for lending, which is
really a proactive idea that would enable eco-friendly business practices which would
benefit our future generations.
5. 5. 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.
6. Natural resources conservation is also one of the Underlying principles in a green
bank while assessing capital/operating loans to extracting/industrial business sector.
7. Tax benefits
8. Better economic control
9. Increase customer goodwill.

1.2 LITERATURE REVIEW

1. Jha and Bhome (2013) conduct a similar survey as stated above to check and thereby
create consumer awareness on Green Banking. Conducting interviews and using
specially structured questionnaires for survey they state certain steps needed in Green
Banking. Online Banking, Green Checking Accounts (ATM, Special Touch Screens),
Green loans (low rate to those who wish to buy solar equipments) for supporting
environment friendly residential projects, power saving equipments, Green Credit
Cards, Paper Saving Mobile Banking are among few steps suggested by them. Green
Banking will ensure organization’s move towards sustainability.

2. Nath, Nayak et al. (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.

3. Rajesh and Dileep (2014) their study as sorted that banks can play a vital role in the
sustainable development by adopting green banking practices. The banks must work
in a planned manner for financing/investing in client’s ideas/proposals directly or
indirectly towards carbon footprints. Banks have A large client base therefore; they
can spread awareness among their clients by adopting green initiatives for reducing
pollution, emission and radiation

4. 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.

5. 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 + premium internet
banking product such as opening bank account, Demat account 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.

6. Sreeshach (2014) in his paper entitled A Study of Green Banking Initiatives of

Selected Private and Public Sector Banks in India, in her paper entitled banking with
technology green banking the various models or channels of green banking which are
taken by the banking sector in the banking activities. This study also focuses on
environment sustainability concept adopted by various private and public sector banks
in India. According to the study, bank is not taking interest in green banking
completely. Public sector banks are more interested in green banking as compare to
private sector bank. For maintaining sustainability, bank should expand the use of
 environmental information in the banking operation, lending and investment decision.
This will help them to improve Environment sustainability and create long term value
for the business

7. Sahitya & Lalwani (2014) made an attempt to understand and appreciate the
importance of green banking initiative for the attainment of goal of sustainable
banking and determine the various attempt that have been

by the top public and private sector bank in India. The study has revealed that the banking
sector has become extremely conscious of the need of go green. Both public and private
sector bank are involved in this process. It can be possible by the paperless banking like
ATM, mobile and internet banking. The adoption of green banking not only enhances the
image of green banking but also contribute in the sustainable growth of economy.
8. 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.

1.3 OBJECTIVES OF THE STUDY

1. To study the customers awareness & perception towards Green Banking.

2. To analyze the factors that affects the use of Green Banking among customers.
3. To know about various Green Banking initiatives & practices.
4. To provide suggestion to promote their Green Banking practices.

1.4 SCOPE OF THE STUDY

The scope of the present study will be limited to analyze the green banking initiatives taken
by the State Bank of India. The study aims at measuring the level of awareness and
perception and also it focuses to identify the motivating factors of the customers towards
green banking services.

1.5 RESEARCH METHODOLOGY

The research was undertaken on the basis of data collected from both primary and secondary
sources. The primary data were collected from customers who use using green banking
services namely ATMs, Online banking, Mobile banking, Green channel counter, Cash
Deposit Machine and Green remit card with the help of questionnaire. The secondary data
were collected from bank official website.

1.5.1 SAMPLING
The researcher has selected sample of 130 respondents. Sampling method was adopted and
respondents were chosen convenience sampling. Questionnaires were used to collect data
from the respondents. Structured questionnaire were framed from various researches to suit
this specific study. Self- administered questionnaires were distributed to the respondents for
the study.

1.5.2 AREA OF THE STUDY

The study area chosen is Kamrup district which is located in the Assam.

1.5.3 SOURCES OF DATA

PRIMARY DATA - Primary data are those data which are collected by the researchers
directly from main sources through survey, interview, experiments etc.
The present study will be based on primary data which will be collected using questionnaire.
Two modes are used for collection of data through questionnaire (depending on the ease of
usage/access of the officers)
ONLINE- Through Google Form.
OFFLINE- Printed copies of the questionnaire are distributed.

SECONDARY DATA - Secondary data is the data that has previously been gathered and can
be accessed by researchers.
The secondary source of data has been used for this project study are from various booklets,
websites and journals.
1.6 REFERENCE PERIOD

The study is for two months i.e. from 03/07/2023 – 31/08/2023.

1.7 PLAN OF ANALYSIS

The data collected are analysed with the help of table pie chart and bio diagram.

1.8 LIMITATIONS OF THE STUDY

Every researcher has to face several limitations. Some limitations can be controlled and some
limitations are out of control of the researcher. In this particular study the researcher had
some limitations as follows:
1. The study area was restricted to Kamrup district only.
2. The study covers only SBI customers and the other banks were not Included in the
study.
3. The sample size is limited to 130 respondents only.
4. The study also suffers from time and money constraints.