Adoption of Green Banking Practices and Its Impact on

Environmental Performance – A Study on Private Banks

ITM University
MBA – 2022

Submitted to: Submitted by:

Dr. Pooja Jain Pratibha Metta
MBAN1MG20027

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 INTRODUCTION

Green Banking basically promotes social and environmental practices

and lessens the usage of carbon footprints used excessively in banks. So,
it’s a step for the way forward for sustainable development. It can also
be said as an extended version of ‘Digital Banking’. As digital banking
only focused on easing the lives by using the online facilities provided
by the banks whereas the concept of green banking has made the lives
easier by taking care of the social and environmental relations also.

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 LITERATURE REVIEW
• C. Jing et al (2022) determined the various impacts and effects of Green
Banking on banks. The data for this study was collected through sample and
data collection, questionnaire, descriptive statistics, reliability, convergent
validity, etc. The conclusion drawn from this study is that there was a
positive impact of green banking on banks but more initiatives can also be
taken to improve the status of green banking.

• K. Shaumya et al (2017) revealed different measures used in order to know

the level of influence of green banking on the banking sector in Sri Lanka
region. The various methods used to collect data were questionnaire,
disproportionate stratified sampling, SPSS, descriptive statistics, etc. The
epilogue drawn from this study is that green banking has has positive impact
on banking related practices where as no impact has been seen in customer
related practices.

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 RATIONALE

There have been significant numbers of researchers in the banking field.

The concept that which is brimming in today’s world is ‘Green Banking’
which not only involves banking but also involves conserving of the
environmental products i.e. promoting eco-friendly practices and
lessening the use of carbon foot prints from banking activities. There were
only few studies in the field of impacts of green banking on
environmental performance. So, the topic of this research has encouraged
me to conduct this study.

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 OBJECTIVES

Following are the objectives of the study:

• To evaluate the impact of green banking on day to day operations.
• To evaluate the impact of green banking on funding or investing on
green projects.
• To analyze the effect of age on green banking.
• To analyze the effect of gender on green banking.
• To analyze the effect of income on green banking

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 HYPOTHESES
The hypotheses are framed considering the objectives of the research paper:
• H1: There is no significant impact of green banking on day to day
operations.
• H2: There is no significant impact of green banking on funding or
investing on green projects.
• H3: There is no significant difference of age on environmental
performance of green banking.
• H4: There is no significant difference of gender on environmental
performance of green banking.
• H5: There is no significant difference of income on environmental
performance of green banking.

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VARIABLES MODEL

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 QUESTIONNAIRE
Rate the following statement given below on the scale of 1-5, where 1 indicates
strongly disagree and 5 indicates strongly agree.
(A) Day-To-Day Functioning
• My bank has opted various system solutions and practices which are energy efficient.
• My bank motivates customers to use green banking facilities.
• The initiatives taken by my bank helps in reduction of paper usage and wastage of
other materials.
• My bank has implemented e-waste management practices.  
• The bank employees are encouraged to digitally communicate with their customers.
• My bank provides e-mail, intranet, e-statements, e-transfers, etc. services which are
eco-friendly.
• Seminars and workshops are being conducted by my bank on regular basis to promote
eco-friendly practices.

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 Contd.
(B) Funding in Green Projects
• My bank promotes certain green initiatives or projects which are independent and
unique such as planting trees, etc.
• My bank provides special sanctions, loans and guidance to environmental enterprises.
• The special grants, loans or guidance is provided to the enterprises which are involved
in eco-friendly practices.
• The loans are provided by bank to eco-friendly and energy efficient projects.
• The credit line is being provided by my bank to green projects.
• In order to evaluate the projects my bank uses social and environmental management
systems or mechanisms.
• The environmental oriented enterprises are granted special grants and other packages.
• To promote green projects the bank provides environmental friendly guidance.

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 Contd.
(C) Practices related to Bank Policy
• My bank promotes environmental policy at corporate level.
• My bank's one of the policy is green policy i.e. eco-friendly.
• My bank indulges in setting up green branches.
• The bank keeps environment related agreements with relevant parties or
stakeholders.
• Stationeries, equipments and other items used in my bank are bought from
eco-friendly companies.
• The environmental related planning and implementation in my bank is done
by head office or top management.

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 RESULTS
• RELIABILITY TEST

(1) Day to Day Operations

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(2) Funding in Green Projects (3) Practices related to Bank Policy

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• REGRESSION ANALYSIS
Impact of Green Banking Policy on Day to Day Operations

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 Contd.

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Impact of Green Banking Policy on Funding in Green Projects

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 Contd.

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 IMPLICATIONS & SUGGESTIONS

• For this research I have taken the data of 102 respondents. The
researchers who are interested for further study can collect the data
from more respondents in order to get more reliable results and get
deeper into the research.

• The responses for this study have been taken from the private sector
banks’ employees; the researchers can also take responses from public
sector banks and other financial institutions’ employees also.

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 LIMITATIONS

• While filling the questionnaire some respondents did not

pay attention to the questions being asked and just selected
the answers without reading them. Due to this reason few
errors occurred while applying different tests.

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 CONCLUSION

In this research, three variables were taken into account in order to understand
the concept of green banking i.e. day to day operations, funding in green
projects and practices related to bank policy. The demographic variables like
age, gender and income of the respondents were also used. The results have
shown that all the variables are related to each other. This research was carried
out by collecting responses from employees of private sector banks. The main
motive of this research was for understanding the concept of green banking
and the impacts it has on the surroundings.

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 REFERENCES

• Jing, C., Abu, B. S., Guang, W. Z., Mohammad, M., & Sodikov, B. (2022).
The Effect Of Green Banking Practices on Banks’ Environmental
Performance and Green Financing: An Empirical Study. MDPI. 15(1292).

• Shaumya, K., & Anton, A., A. (2017). The Impact Of Green Banking
Practices On Bank’s Environmental Performance: Evidence from Sri
Lanka. Journal of Finance and Bank Management. 5(1). 77-90.

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