Green Banking in India
Green Banking in India
Green Banking in India
Submitted By
TORAKSHI GUPTA, 12
Project Guide
PROF. VINAY JADAV
“GREEN BANKING”
Submitted
In Partial Fulfillment of the requirements
For the Award of Degree of
Bachelor of Commerce (Banking & Insurance)
By:
TORAKSHI GUPTA
Roll No.: 12
ACKNOWLEDGEMENT
To list who all have helped me is difficult because they are so
numerous, and the depth is so enormous.
DECLARATION
_____________________
TORAKSHI GUPTA
Roll No.: (12)
CERTIFICATE
This is to certify that Ms. Torakshi Gupta, Roll No: (12) of Third
Year B.B.I., Semester V (2019-2020) has successfully completed the
project on
GREEN BANKING
under the guidance of Asst. Prof. Mr. VINAY JADAV.
External Examiner
6
INDEX
Introduction 7
Risks in Green Banking 15
Need for the study 17
Review of literature 18
Challenges 20
Objectives and Hypothesis 23
Methodology And Measurement 24
Research Design 25
Green banking In India 26
Data Findings And Analysis 38
Research Findings 44
INTRODUCTION
Today, the way we are recklessly consuming resources on earth, the question arises what we
will leave for future generation. The concept of sustainable development that is taking care of
the need of present generation without compromising the needs of future generation, has
given rise to green marketing and then green banking. Green banking is different from
conventional banking as convention is based on the principal of security and profitability and
morality has a very little role. Green banking is a new concept that considers environmental
and socially responsible investing. Green banking is defined as promoting environmental-
friendly practices and reducing the carbon footprint from banking activities. In simple words,
green banking is a banking that benefits the environment. The green banking is also known as
ethical banking. The bank can minimal the use of paperwork by promoting paperless banking
through online banking. To initiate sustainable development, there is a need to promote green
banking practices so that we can tackle the problems like global warming, natural calamities,
and disaster. Bank is a financial institution that deals with masses and banks by adopting
green activities can influence the attitude of the customers towards the environment.
The concept and practice of green banking is new to India, but not in developed nations like
the USA. There is a need to focus on sustainable banking to protect the environment from
disaster. The performance of bank’s clients impact the performance of banks so there is a
need for appropriate environmental and social due diligence to reduce the chance of non-
performing assets, as legal environmental compliance failure can halt the client’s project and
result in NPA to the bank. Bank should take into consideration the ecological aspect in
lending apart from security and profitability. Various international protocols such as
UNEPFI, Equator Principles, and LEED certificates have been issued in order to facilitate
green banking, but Indian banks are still lagging behind. Various banks in India have
formulated strategies and initiated green banking practices to support environment-friendly
banking and reduce the carbon footprints of bank and customers. The banks in India also
started green banking practices such as online banking, mobile banking, Green channel
counters, e-statement, green loans, solar ATMs, etc. The issues of global warming should not
be only restricted to a debate but has to be dealt with going green. Thus, green banking is one
of the ways of going green. There is a need to involve key stakeholders and creating
awareness about environment-friendly banking.
There are many types and styles of institutions that finance clean energy and green
infrastructure projects. There are several key elements that distinguish green banks from
other financing institutions: a focus on commercially viable technologies, a dedicated source
of capital, a focus on leveraging private investment, and a relationship with government.
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The banking industry influences economic growth and development, both in terms of quality
and quantity, leading to a change in the nature of economic growth. Therefore, banking sector
plays a crucial role in promoting environmentally sustainable and socially responsible
investment. Banks may not be the polluters themselves but they usually have a banking
relationship with some companies/investment projects that are polluters or could be in future.
Therefore, banking sector plays a crucial role in promoting environmentally sustainable and
socially responsible investment. Banks may not be the polluters themselves but they usually
have a banking relationship with some companies and their projects- polluters or could be in
future.
In the recent years, the international organization for standardization (ISO) has issued series
of comprehensive guidelines for incorporating environmental protection and pollution
prevention objectives into industrial activity worldwide, known collectively as ISO 14000. It
will certainly give the much needed impetus for the banking industry to expand the use of
environmental information in their credit extension and investment decisions. The banking
operation targets a certain long-term rate of return on their credit and investment.
Nevertheless, every credit extension and investment carry the risk of non-payment and
reduction of value (in case of direct investment) due to environmental liabilities. Therefore, it
is of importance to the banking sector to follow certain environmental evaluation of the
projects before financing. There are studies showing positive correlation between
environmental performance and financial performance (Hamilton, 1995; Hart, 1995;
Blacconiere and Pattern, 1993). Thus, it is essential for the financial institutions in the present
to consider environmental performance in deciding whether to invest in companies or advise
the clients in doing so.
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Green banking
What is Green Banking?
“Green Banking” itself insinuates promoting environmental friendly banking practices and
reducing carbon footprint from banking activities. To add simplicity to this term, it is a form
of banking which ensures less utilization of natural resources and optimal reduction of
wastage of paper/ carbon footprint. Green banking is being practiced by all banks, which
consider all the social and environmental/ecological factors with an aim to protect the
environment and conserve natural resources. Green banking practices are also labelled as
“ethical banking” or a sustainable banking. The key idea behind this banking concept is to
enhance the conservation of earth's environment/ habitats/resources.
Until recently, green banking just seemed like an initiative and such environmental
concerns did not really seem to be relevant to a bank’s operations. Initially, a bank checking
their client’s environmental worthiness would have been considered as prying into a private
business. However, now the perception looks towards how this brings risks to their
business. Although the banking and financial institutions are not directly affected by the
environmental degradation, there are indirect costs to banks. Credit, legal and reputation
risks have constantly been haunting these banks unless such initiatives are taken.
1. Go online
Online banking is the thriving concept in young and corporate India. Online banking
helps in additional conservation of energy and natural resources. Online banking
includes:
a. Paying bills online
b. Remote deposit
c. online fund transfers
It helps in savings paper, energy, and expenditure of natural resources due to banking
activities. Customers can save money by avoiding late payments of fees and save time
by avoiding standing into queues and paying the bill.
Customers can check their account details through ATM machines provided in bank
kiosks or special touch screens in the branches of different banks. This can be called
green checking of account. Often usage of online banking services like online bill
payment, using debit cards for payments against payments, and online statements help
the environment against detritions. Banks should promote green checking by giving
some incentives to customers by giving higher rate of interests, waiver or discount in
fees etc.
7. Mobile banking
Mobile banking saves time and energy of the customers. It also helps in reducing use
of energy and paper of the bank. Most of the Indian banks have introduced this paper-
less facility. in order to be eco-friendly.
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Converting to an online savings account and mobile banking is the easiest way to go green
and help the environment. Green banking includes setting up direct deposit to receive your
paychecks, receiving electronic statements from banks and by paying bills online. All of
these steps can drastically reduce the amount of paper used by bank. Online banking and
mobile banking are also highly effective ways to keep track of financial transactions and to
avoid late payment fees. Many banks claim to be eco-friendly, but in fact do little to support
environment initiatives with the money you deposit with them.
1. Enquire the local bank exactly how they support the environment before assuming their
self-anointed "Green Bank" label is appropriate. Chances are good that there is a single bank
in the local market that is significantly more socially-conscious of their policies than their
competitors.
2. Finally, the more people who actively search for and support eco-friendly banks, the more
competition for deposits will increase and thus raise the awareness for green banking.
A. Retail Banking
1) Green Mortgages: This facility helps the individual customer to get a lower interest rate
green loan than market rate, who is ready to purchase new energy efficient homes. This
facility also allows them to invest in energy efficient appliances.
2) Green Home Equity Loans: Reduced rate home equity loans sometimes referred to a
second mortgages can help motivate households to install residential renewable energy
(Power or thermal), technologies.
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3) Green Commercial Building Loans: From the above study we conclude that, 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 loans designs and arrangements have started to emerge for green commercial
building characterized by lower energy consumption reduced waste and less pollution than
traditional building.
4) Green Car Loans: With below market interest rate many green car loans encourage the
purchase of cars that demonstrate high fuel efficiency.
5) Green Cards: A broad family of green products includes debit and credit cards linked to
environmental activities. This green cards offered by large credit card companies offer to
make nongovermenent organizations donations equal to approximately One-half percent of
every purchase, balance transfer or cash advance made by the card owner.
3) 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 technology providers, carbon credit
developers, and other firms marketing environmental product and services.
4) Green Index: Some banks have currently developed index that fluctuate as future
environmental opportunities and challenges
C. Asset Management
1) 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.
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2) Green Investment Fund: Sustainable investment funds have evolved through three
generations, where the complexity of assessing investment eligibility rises at easy level.
3) Carbon Fund: Collaboration between multi lateral development banks and private
financial institutions has led to the emergence of a variety of carbon funds to help finance
GHC emission reduction projects to curb climate changes.
D. Insurance
1) 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.
2) Carbon insurance: There are many risks inherent in emission reduction transaction, as
well as low carbon project assessment and development activities. In response some financial
institutions now offer insurance product to manage carbon credit price volatility.
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Credit Risk:
Due to climate change and global warming there will be direct as well as indirect costs to
banks. It has been observed that due to global warming there had been extreme weather
condition which affects the economic assets financed by the banks thus leading to high
incidence of credit default. Credit risk can also arise indirectly when banks lead to companies
whose businesses were affected due to changes in environmental regulation.
Legal risk:
Banks like other business entities face legal risk if they do not comply with relevant
environmental regulation. They also face risk of direct lender liability for cleanup cost for
damages in case they actually take possession of pollution causing assets.
Reputation Risk:
Due to increasing environmental awareness banks are prone for reputation risk if their direct
or indirect actions are viewed as socially and environmentally damaging. Reputation risks
emerge from the financing of environmentally objectionable projects.
STRATEGIES
Indian Banks can adopt green banking as business model for sustainable banking. Some of
following strategies little reflected in their banking business or must be adopted by banks.
Paperless Banking:
All banks are shifting on CBS or ATM platform providing electronic banking products and
services. So there is a scope for banks to adopt paperless banking. Private and foreign banks
are using electronics for their office but in PSU banks are still using huge paper quantity.
Energy Consciousness
Banks have to install energy efficient equipment’s in their office. Banks have to transform
this green banking in hardware, waste management, energy efficient technology products.
Banks can donate energy saving equipment to schools and hospitals.
The Financial Times and International Finance Corporation (IFC) is a member of World
Bank Group launched Sustainable Finance Awards for institutions that are integrating social,
environmental and corporate governance into their business operations. Their awards
highlight the partnership between financial and non-financial companies in finding
commercially viable and innovative solutions to sustainability challenges. The five categories
of Sustainable Finance awards as per Financial Times are as follows
• Sustainable Bank of the Year
• Technology in Sustainable Finance
• Sustainable Investment of the Year
• Sustainable Investor of the Year
• Achievement in Inclusive Business
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Green marketing has now evolved as one of the major area of interest for marketers as it may
provide competitive advantages. However it requires investment in terms of technology
enhancement, process modification, communicating benefits to customers etc. Many of the
companies in India have now started marketing themselves as green organizations due to
certain government regulations and shift in the preference of the consumers worldwide.
However, not much research with respect to green marketing has been done in India and there
is question about the awareness of green products among consumers. The attitude of Indian
consumers towards green products and the relationship between the attitude and behavior is
also questionable. As green marketing is different from the marketing in traditional way,
marketers need to know the factors that persuade the consumer to buy the green products.
This study aims to resolve the research question that what factors influence the consumer
persuasion to buy the green products or not.
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REVIEW OF LITERATURE
A general scanning of literature available in India from different published sources indicates
that very few detailed studies have been conducted in India in the field of Banking,
particularly in the field of Green Banking. However, many studies have been conducted
abroad, particularly in the western developed countries. But these are not very relevant in
Indian context.
This section reviews empirical literature on Green Banking conducted in country as well as
abroad in chronological order. Jeucken and Bouma (1999) in their study identified four stages
or attitudes of banking toward sustainability. The first stage is defensive banking, in which
bank is non-active and tries to delay or oppose the new legislation as it may damage the
interest of banks directly or indirectly. The Second stage is preventive banking in which bank
has to comply with legislation to avoid any constraint on its activities. The third stage is
offensive banking in which banks are concerned about internal as well as external activities.
The final stage is sustainable banking, which is, a win-win solution. Banks under this stage
looks for highest sustainable rate of return not for highest financial rate of return. Getzner and
Kra¨uter (2004) in their research paper tested the respondents' willingness to invest in green
shares. Authors found education, income, environmental awareness and the expected profit
are the main explanatory variables.
The study by Bhardwaj and Malhotra (2014) linked the performance of bank with the green
banking adoption. They found a positive relationship between adoption of green banking and
bank profitability. On the other hand, similar study by Rajput, Arora, and Khanna (2014)
found no relationship between green banking initiatives and bank’s profitability.
Sudhalakshmi and Chinnadorai (2014) studied the green banking adoption status of Indian
banks. Their study showed that not many initiatives have been taken by banks in India as far
as green banking is concerned. They concluded that banks have to play a proactive role in
order to take environmental and ecological aspect as a part of their lending process, which
would force industries to go for mandated investment for environmental management.
Similarly, Ahmed (2012) discussed the contemporary green banking initiatives taken
globally and more specifically in Bangladesh. He gave policy recommendation which
included giving rewards to the banks for positive green banking initiatives by developing
green index rating and building awareness amongst the stakeholder such as Competitors,
Corporate Consumer, and non-Corporate Consumer, employee, employee union and
Government Regulatory Organization. At policy level, Choudhury et al. (2014) advocated for
the necessity of stakeholder's influences in green banking practice and recommends some
indication for Government, the whole banking sector and for the business community.
Bahl (2012) suggested RBI and Indian government should play a proactive and formulate
green banking policy, guidelines & financial incentives for effective green banking. Nath,
Nayak, and Goel(2014) conducted a study on green banking practices and recommended for
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change in routine operations of banks by adoption of paperless banking, online banking, and
mobile banking, and mass transportation system, green cards made up of recycled plastic.
They carried out SWOC analysis wherein, they explained time and cost saving as the major
strength, lack of infrastructure, computer illiteracy are the major weakness, opportunities that
are available is people are becoming tech-savvy and environmentally conscious, but the
major challenge is internet connectivity and moreover no banking practices are not fully
secured.(world finance conference).
Kalloch and Bachman (2011) highlighted the online and small community banks are seen as
greener than large banks. One big criticism of large banks is that they finance
environmentally detrimental endeavors. Papastergiou and Blanas (2011) conducted study on
“Sustainable Green Banking: The Case of Greece and approached the area in an integrated
and innovative way. According to their finding, they identified 50% banks were in defensive
phase, 40% in preventive, and 10% in offensive stage. KO et al. (2014) in their research
paper found that there is a significant positive relationship between green concern and
internet use. Their study shows that “bank's customers are more concerned about
environmental problems and they are willing to go green, following other people who are
making green efforts”. Green concern as a construct of social influence dimension
significantly influence use of internet banking.
The study also indicated word of mouth communication from friends and family
significantly influences the internet usage. Similarly, Singh and Singh (2012) in their paper
expressed society's growing concern about the natural environment, the business organization
are also modifying their working in order to increase greenery. Rajput, Khanna and Kaur
(2014) in their study endeavors made by SBI, the market leader in Educational Loans, Auto
Loans, and the no.1 home loan, on the road of green banking and sustainable development.
The Bank has also been an active participant in wildlife conservation projects like ‘Save the
Tiger'. State Bank of India has become a signatory investor to the Carbon Disclosure Project
(CDP) to disclose its carbon footprints.
Ahmed, Zayed and Harun (2014) in their study applied factor analysis and finding revealed
that six factors namely six factors namely economic factor, policy guideline, loan demand,
stakeholder pressure, environmental interest, and legal factor were the major factors behind
the green banking adoption in Bangladesh. Verma (2012) in his study explained the evolution
of green banking in India, and highlight that now banks are incorporating green banking
practices in CSR as a main activity. However, his study concluded that only few banks in
India adopted green banking and there is lack of awareness among the bank staff and
customers.
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To highlight the CSR of banks, the RBI circulated a notice on December 20, 2007 to all
scheduled commercial banks titled ‘Corporate Social Responsibility, Sustainable
Development and Non-Financial Reporting- Role of Banks.’ The RBI also followed many
international initiatives like United Nations Environment Program Finance Initiative (UNEP-
FI), Global Reporting Initiative, IFC, the Equator Principles and Declaration of Financial
Institutions. The UNEP-FI is part of UNEP for which around 200 business concerns across
the world are signatories to promote economic development, environmental protection and
sustainable development. The Equator Principles (initially Greenwich Principles) were first
announced by ten international banks from Europe, North America and Australia in June
2003 and aimed to ensure that the projects financed by banks and financial institutions are
socially responsible and reflect sound environmental management practices. These principles
are based on the Performance Standards on Social and Environmental Sustainability of the
IFC, a member of World Bank Group (Bansal & Bansal, 2011).
On October 28, 2011 RBI issued a letter to all Non-Banking Financial Corporations i.e.
NBFCs titled “Implementation of Green Initiative of the Government” asking them to take
steps for better utilization of their resources and better delivery of services. This can be done
by increasing the use of electronic payment systems, elimination of post-dated cheques and
gradual phase-out cheques in their day to day transactions.
Today, when a person gets a savings account opened in a bank, most of the banks provide
three passwords- one for transacting from ATM, another for Online-Banking and the third for
Phone Banking. It is a clear indication of the extent of use of technology by banks paving
way for India to become the ‘THUMB ECONOMY’. Green banking is not merely
environmental protection but customer delight saving customers’ time, energy and money.
People are making use of wide variety of services through their debit card or credit card viz.
online booking, making bill payments, online shopping, downloading banking transactions as
well as credit card transactions, verifying bank balances, money transfer, opening and closing
accounts, balancing a cheque book, tracking recent account activity, etc. The banks are
therefore heading towards an IT enabled Customer Relationship Banking. The initiative of
green banking is mutually beneficial for the banks, industries and the economy. Moreover, it
will ensure improvised asset quality of banks in future. As according to the Happy Planet
Index, India stood on 90 position in 2006 and 35 in 2009; and India’s commitment to cut its
carbon intensity by 20 to 25 per cent by 2020 from 2005 levels, provides tremendous
opportunities for banks. Here, the concept of 3Cs and 3Ps will be worth mentioning as
necessary factors for sustainable growth. The 3Cs stand for- Cost, Control and Customer
Service and 3Ps stand for- People, Planet and Profit. Green banking optimizes costs, reduces
the risk, enhance bank reputations and contribute to the common good of environmental
sustainability. So, it serves both the commercial objective of the bank as well as its social
responsibility. Risk is one factor which is inevitable from banking system. Risk can be
avoided by maximizing the use of opportunities in the following areas:
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India is the world’s sixth largest and second fastest growing country in terms of producing
green house gases. A major hindrance in implementation of green initiatives by banks exists
due to absence of policies and regulations. In this regard, the RBI and Indian government can
play a proactive role by formulating green policy guidelines. The RBI or any other regulatory
authority can recognize and reward the environment conscious providers of green loans on an
annual basis. Green rating agencies can be set up to rate the green loans, green funds,
financial instruments, etc. Tax concessions can be allowed to those making green
investments. Lastly, green insurance wherein cover for different kinds of environmental risk
can be provided. With larger customer-base, Indian banks can unleash the potentiality of
emerging technology powered by CBS and offering new best practices for sustainable growth
and development.
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Research objectives
• To investigate the level of awareness of Indian consumers about green products and
practices.
• To measure the green values of the customers.
• To investigate the preferences of Indian consumers about green products.
• To understand the issues and challenges of green marketing practices.
Hypotheses
Based on the literature reviewed and the conceptual model following hypotheses were
generated to be verified with statistical analysis:
RESEARCH DESIGN
1. RESEARCH METHOD
Survey through questionnaire method and secondary data from various banks in India.
2. RESEARCH TYPE
Explanatory research using primary data and secondary data.
5. Rate of Interest- The bank provides the loans in two categories fixed and floating.
For loans above 75 Lakh the interest rate will be only floating rate based on SBAR.
6. Documentation – Salaried individuals need to show income related documents along
with 6 months bank statement, for self - employed and business persons; the
documentation includes last 3 years income tax returns and profit and loss statement of
the business activity. The customer has to also provide signature identification from
current banker.
7. Fees: The bank charges a fixed fees based on the quantum of loan. Rs 1000 for loans
below 5 lakh, Rs 2000 for 5-10 Lakh, Rs 5000 for 10-20 lakh, Rs 7000 for 20-50 lakh
By launching ‘Green Homes’, the country’s largest bank wants to support rated
environment friendly residential projects by offering concessions - reduced margin,
softer interest rate, and zero processing fee - on home loans to discerning buyers. A
‘Green Building/ Home’, according to the IGBC, is one that uses less energy, water and
natural resources, creates less waste and is healthier for the people living inside
compared to a standard building.
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Performance and sustainability of the bank- The bank has made a net profit of Rs.4747.67
Crores in 2013. While PNB has been consolidating its asset book quite well in the last couple
of quarters and they have started picking up in the last quarter itself. Q3 2013 had been pretty
good for them but in Q4 they surprised us negatively as far as fresh slippages are concerned
PNB had surprised us a little more negatively than what was estimated. The bank’s profit and
loss statement comparative study is in Table below.
Bank of Baroda
According to the annual report of BOB (2013), they had taken various green banking
initiatives such as: - 1. While financing a commercial project, BOB is giving preference to
environmentally friendly green projects such as windmills, biomass and solar power projects
which help in earning the carbon credits. 2. The organization had made considerable changes
in their lending policy, i.e. it is compulsory for industries to obtain ‘No Objection Certificate’
from the Pollution Control Board and also they are not extending any finance to
environmental hazardous industries which are using ozone depletion substances such as
halos-1211, 1301, 2402 used in foam products, cholorofluoro carbon CFC 11, 12,113,
solvents in cleaning and aerosol products. 3. The bank had taken several technological
initiatives such as compliance with e-business guidelines, use of internet banking, mobile
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banking to promote paperless banking and also increasing the installation of ATM’s in most
of uncovered areas to reduce the petrol or diesel consumption in travelling and helps in
maintaining a clean environment. 4. As a part of green initiative, they had made changes to
desktop virtualization; backup consolidation and server virtualization improve data center
operational efficiency.
Performance and sustainability of the bank- The kind of numbers that BoB has delivered
in the recent years has been appreciated throughout. On the margin front bank had some dip
and net interest income (NII) was also little lower than estimated, but the other operating
income was significant during the year. The profit and loss comparative is below.
ICICI Bank
1. ICICI Bank is offering 50% concession on processing fee on car models to those
customers who use more environmental friendly vehicle.
2. If customer purchases home in Leadership in Energy and Environmental Design then
they have to pay reduced processing fee under ICICI Home Finance.
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3. ICICI Bank is working on and looking forward to partnership with National &
International Green organization & NGOs.
4. Communication on Online bill pay, Online funds transfer and subscribing to e –
statements in order to migrate the customers to “paperless and commute free
banking”.
Yes Bank
Yes Bank is a first Indian signatory to the carbon disclosure project and has documented
its carbon footprint. It is also the first Indian Bank from the Private sector to become
signatory to UNEP statements by financial institutions on the environment and
sustainable development.
Yes Bank also advocated a proactive response to climate change from its peers in the
banking community, industries and society as well. SIB is the Bank’s specialized
Investment Advisory for Sustainable Ventures commanding expertise in the areas of:
1. Alternate Energy and Environment Advisory
2. Social Enterprises and Rural Advisory
The team is one of the few specialized Investment Banking divisions actively
involved in supporting initiatives on Renewable Energy, Clean Technology and Socially
Sustainable Sectors (broadly defined as Healthcare, Education, Livelihood Creation,
Water and Sanitation, etc.). Performance and analysis Though Yes Bank has provided
some outstanding initiatives, the net profit for the year 2013 has been calculated to
1617.78 cr. The performance of the bank has been relatively low. Its profit and loss
comparative study is below.
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IDBI Bank
IDBI Bank took a step towards green initiative in corporate governance in which the bank
send all the documents relating to General meeting notices/other notices, Annual report
etc. to their shareholders in electronic form. IDBI Bank has an exclusive team working on
Clean Development Mechanism (CDM) advisory services.
It also implemented a refinance scheme for energy saving projects for Micro, Small and
Medium Enterprises. Performance and analysis Public sector lender IDBI Bank's third
quarter net profit dropped 75 percent to Rs 104 crore compared to same quarter last year,
dented by a steep fall in non-interest income and slow growth in net interest income. Net
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interest income, the difference between interest earned and interest expended, grew from
5.3 percent to Rs 1,488.4 crore during October-December period. Other income or non-
interest income fell from 39 percent yearon-year to Rs 532 crore in the quarter gone by.
Conclusion
Banks and Financial institutions play a major role to make our planet a better place to live in.
Green bank and environmentally responsible banks do not only improve their own standards
but also affect socially responsible behaviour of other business. Green banking helps in
saving the energy and water consumption and also appraises banks in the eyes of
environment supporting customers.
As far as green banking is concerned Indian banks are far behind their counterparts from
developed countries. If Indian banks desire to enter global markets, it is important that they
recognize their environmental and social responsibilities. But, today, many Indian banks are
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making efforts to “Go Green” through offering various green products and services to their
customers and taking initiatives in their day to day business operations for the environmental
concerns.
These include- Online banking, mobile banking, ATMs, Electronic fund transfers, Green
mortgages, Green credit card, use of solar and wind energy, recycling of paper, Green
buildings etc. But still there is a long way to go. Indian banks need to set their near term and
long term green goals, develop their green strategies and execute their greening activities in a
phased manner. 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.
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The concern for environmental sustainability by the banks has given rise to concept of Green
Banking. So in order to know whether the consumers are aware of the products and services
related to Green Banking, a questionnaire was given to them. After getting the appropriate
data, the findings and analysis are as follows:
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40
41
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RESEARCH FINDINGS
H01: This hypothesis said that people are not concerned about the green values but this has
been proved wrong in this research. People are surely concerned about the green values.
100% of the people said that green banking is really helpful for the betterment of
environment.
H02: This hypothesis said that people are concerned about the green values and this has been
proved right in this research. 80% people said that all banks should become paperless and
100% of the people said that green banking is really helpful for the betterment of
environment.
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CONCLUSION
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10. https://in.search.yahoo.com/yhs/search;_ylt=AwrxgurlNWVdswkAuyfnHgx.;_ylc=X1M
DMjExNDcyMzU1OQRfcgMyBGZyA3locy1hdmFzdC1zZWN1cmVicm93c2VyBGdw
cmlkA2Y5TzdzbVpBUl91Q21XZFZJSEdjeUEEbl9yc2x0AzAEbl9zdWdnAzAEb3JpZ
2luA2luLnNlYXJjaC55YWhvby5jb20EcG9zAzAEcHFzdHIDBHBxc3RybAMwBHFzd
HJsAzE4BHF1ZXJ5A2dyZWVuJTIwYmFua2luZyUyMHF1aXoEdF9zdG1wAzE1NjY
5MTQ5MTc-?p=green+banking+quiz&fr2=sb-top&hspart=avast&hsimp=yhs-
securebrowser¶m1=f27ee07db48d40f2802d30dce1cc5366¶m2=20180721&pa
ram3=Avast+Secure+Browser%7C75.1.1528.101¶m4=12%7CIN%7C1.17.4.503%
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11. http://epratrust.com/articles/upload/7.%20Dr.%20AL.%20Malliga%20&%20K.%20Rev
athy.pdf
48
12. https://search.gmx.net/find?q=questionnaire%20on%20banking&ae=10000&at=4&lang
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76072473176269:loc-
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s
49
ANNEXURE: QUESTIONNAIRE
1. Name
________
2. Gender
o Female’
o Male
o Prefer Not To say
3. Age
o 10-20
o 20-25
o 25-35
o 35 and above
10. Do you think using e-Banking service is more prestigious than queuing at the bank
halls?
o Yes
o No
11. Does your bank give intensive advertisements and demonstrate how to use green
banking services?
o Yes
o No
12. Do you think Green Banking is really helpful for the betterment of environment?
o Yes
o No