AMITY BUSINESS SCHOOL

AMITY UNIVERSITY
UTTAR PRADESH

IMPACT OF GREEN BANKING ON

PROFITABILITY: EVIDENCE FROM INDIAN
BANKING SECTOR

A RESEARCH WRITING SUBMITTED TO AMITY UNIVERSITY, NOIDA

UNDER THE SUPERVISION OF
DR T.V. RAMAN
AMITY BUISNESS SCHOOL
BLOCK I-2, SECTOR 125, AMITY CAMPUS, AMITY UNIVERSITY, NOIDA

SUBMITTED BY:

MBA (FINANCE)
SECTION – A
BATCH (2019-2021)
AJAY VEER (Roll No. 53)
ENROLLMENT NO. A001110719008

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 ACKNOWLEDGMENT
I would like to express my special thanks of gratitude to Dr. T. V. Raman who gave me the golden
opportunity to do this wonderful research report having titled “Impact of Green Banking on
Profitability: Evidence from Indian Banking Sector”, which also helped me in doing a lot of research
and from this I came to know about so many new things. I am really thankful to him.
Secondly, I would also like to thank Ms. Kanishka Gupta who helped me a lot in finalizing this
project within the limited time frame.

DECLARATION

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I, Ajay Veer, hereby declare that the Project Report “IMPACT OF GREEN BANKING ON
PROFITABILITY: EVIDENCE FROM INDIAN BANKING SECTOR” is my own work to the best
of my knowledge and belief. It contains no material previously published or written by another
person or material which to substantial extent has been accepted for the award of any other degree,
diploma or programme of any other institute, except where due acknowledgement has been made in
text.

AJAY VEER Date: 16-05-2020

Roll No.: 53
MBA (Finance)
Section - A
Amity University, Noida

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................5
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LITERATURE REVIEW....................................................................................................................7
RESEARCH METHODOLOGY.......................................................................................................9
3.1. Objectives of the Study................................................................................................................9
3.2. Data and Sample Selection........................................................................................................10
3.3. Research Tool and Model..........................................................................................................11
ANALYSIS AND INTERPRETATION OF RESULTS.................................................................11
DISCUSSION AND CONCLUSION................................................................................................13
LIMITATIONS..................................................................................................................................14
FUTURE SCOPE OF WORK AND RECOMMENDATIONS.....................................................15
REFERENCES...................................................................................................................................17

ABSTRACT

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Green Banking or Environmental Performance is an important part of the sustainable direction that
drives the economy. Banking is considered as one of the most important economic agents that
influences the activity of industries as a whole and economic development. The effect on the
economy can therefore also impact towards the quality assets and Similarly can impact the long -
term rate of return of the banks too. Thus, banks are proactive and plays a constructive role in taking
the environmental/Sustainability and ecological balancing considerations into observation as part of
their lending philosophy, which will push companies to use suitable technology and management
systems to go for compulsory expenditure for environmental sustainability. This paper takes a critical
look at the Role of Green Banking and Outlines valuable lessons for sustainable banking
development and growth in India. Green Banking is distinct from conventional banking, as green
banking seeks to encourage environmentally sustainable banking. Green banking is called ethical
banking too. This research mainly tries to quantify a relationship through the use of statistical
methods for regression analysis (and ANOVA) through software (SPSS) software. The findings
suggest that the presence of association between net/total income and Profitability is important. But
(with conclusive evidences) there is no relation between the implementation/adoption of Green
Banking and the profitability of banks which is significant as seen in the research report.

KEYWORDS: Green Banking, Environmental Performance, Ethical Banking, regression analysis

etc.

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 INTRODUCTION

Climate change is by far the most difficult task to deal in terms of sustainability. Likewise,
environmental concerns are gaining more attention, and pressure is placing on all business sectors,
including financial institutions and utilities, to introduce "green" initiatives. Nowadays, Climate is
now a crucial priority for most of the goals and sustainability or green banks are an important way to
avoid traditional banking. In addition, certain sectors that have already made significant attempts to
develop green should be considered specifically for the banks to lend. This funding strategy is called
"Green Banking," an attempt the banks have made to expand and encourage sustainability in order to
preserve nature. This "Green Banking" idea is potentially beneficial for banking sectors, businesses
and helps in increasing the economic conditions. Green Banking aims to support and integrate
environmental and social responsibility, but offers a great deal of resources in banking.
Green banking or sustainable banking strategy differs from organisation-to-organization. Green
Banking is also referred to as ethical banking. Ethical banking starts with environmental protection
target. Before considering a loan, ethical banks consider all the factors like the project is friendly to
the environment or not and has consequences for the sustainability. In Considerations of greenhouse
gas emissions, India ranks as one of the major and faster growing nation in the world. States like
Delhi, Mumbai and Chennai are among the most (Ranked in top 10) polluted areas in the world.
Some of India's major pollution-causing industries includes primarily metallurgical factories or mills,
paper and pulp industry, pesticides or insecticides manufacturing, fertilizers wastes,
pharmaceuticals/chemicals leftover wastes, textiles pollution etc. The Financial industry such as
banking sector is the principal help of financing for these industries. Hence the bank’s role in
controlling the damage to the environment is extremely important. By promoting paperless banking
through online banking services, the bank can minimize or reduce the usage of paper working habits.
To start the idea of sustainable growth, green banking activities need to be promoted so that we can
tackle the problems. Bank is a financial institution that adopts green practices to deal with masses
and banks. These initiatives will affect client’s attitude towards the environment. Green banking is a
recent concept and has been started to practice in India but the fact is that its acceptance is not fully
established as seen in developed countries like United States of America (USA).
As you can see Worldwide, the growing debate about banking initiatives towards environment and
proper investments made by investors in different institutions in the environmentally sound/socially
active investment ventures. Banking sectors and other finance related entities have been successful in
completing the required aim because of the ability of regulating position they possess in most of the
economy and the possible scale of their numbers of investors. The term environmentally friendly is
not so longer a primary area of the concern for the government and the pollution caused due to direct
polluters, however certain business partners and stakeholders, such as financial entities like banking
sectors, may also have a very significant role in increasing the connection rate between economic
growth and environmentally friendly conservation. The fundamental principles on which financial
institutions have depended in their business idea in recent years are to promote the services having
quality standards, the implementation or adoption of environmentally friendly conservation
measures, respect towards the disadvantaged society sections, recommendations in for consideration
towards maintaining life with quality standards and biodiversity.
Bank client’s performance impacts bank performance. Adequate environmental and social due
diligence is required to minimize the risk of non-performing assets, as failure to comply with the
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legal environment will bring a stop to the client's project and result in a bank NPA. In addition to
security and profitability, the Bank should take into account the ecological aspect of lending. Several
Indian banks have developed policies and initiated green banking initiatives to promote
environmentally friendly banking and increasing carbon footprints for banks and consumers. Indian
banks have also begun using practices of Green Banking namely Online banking services , Mobile
banking or portable banking, green channel counters to create awareness and to reduce paper using,
e-statements, green loans, solar ATMs etc. In terms of both quality and quantity standards, the
banking sector has an effect on global growth and prosperity by shifting the nature of economic
growth. The banking sector is considered as one of the largest sources of investment financing for
commercial enterprises and one of the most important economic growth activities. The financial
industry namely banking sector will also play a vital role in encouraging environmentally sustainable
and socially responsible expenditure. Government rules and regulations should be made to allow all
banks to carry out the required acts in order to establish an eco-friendly climate, morality and ethics
essential for economic growth. Because of these issues, Green Banking 's effect is an area of interest
in profit making and how it affects the competitiveness of the bank. Hence, this research paper is
mainly dealing with the efforts made by the Indian banking sector in terms of profits while investing
in the green initiatives taken by the banks. After this section, there would be literature review done
by different researchers. Following that there would be a section communicating about data collected
and research methodology implementation the secondary data. Based on the above section, results
and data interpretation can be analysed and concluded. After all these, discussion can be done and
conclusions can be made. Since every research has some limitations as well which can help to
improve furthermore and can be researched. At last, future scope and recommendations can be made
based on your observations and understandings. Referring (references) needs to be done at last of the
writing.

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 LITERATURE REVIEW

This section provides a rough overview of the numerous green banking studies conducted in India
and beyond. He revealed that growth of information technology (IT) in the field of transactions has
created great demand for CSR (Corporate Social Responsibility) activities to be introduced in all
sectors including banking services. Several international and Indian scholars have researched green
banking and green initiatives and are trying to find the significance of this in the earnings of the
company and whether or not there is any shift in net income in the annual expenditures of the
company. Moreover, worldwide organizations like for example World Bank made consistently
placed pressure on the banks to be socially active towards environment and environmentally friendly
nature required for creating a greener, safer world. Hart and Ahuja (1994, 1996) estimated that the
impact of green banking execution in the short term is negatively linked to productivity, it appears to
be positive in the long run. Similar findings have also been observed in the study conducted and
headed by Klassen and McLaughlin, 1996 (created a formula for calculating the increasing stock
value of the business in accordance with the deviation in environment friendly measures). The
experiential research having productive results undertaken by Russo and Fouts (1997) has been
discovered and suggests a positive relation in between environmental/green initiatives and net
profits. Similarly, various stakeholders or shareholders such as consumers, NGOs, state regulatory
bodies, media etc. have from time to time considerably discussed and appreciated the issues of social
responsibility in the banking sector (Jeucken, 2001; Bhattacharya et al., 2004). Additionally, Printer
et al. (2006) and Mathieson (2008) have showed that there is a positive relationship between green
banking implementation and consumer loyalty profitability. Galdeano-Gomez (2008) also found the
two to have the same positive relationship. Indian researchers have also attempted from time to time
to study the impact of green initiatives / green banking on their financial performance. Nishi Sharma
(2009) researched the Corporate Social Responsibility .i.e. CSR activities (green initiatives) in the
Indian Banking and found that Banks working in the banking sector have not completely introduced
Green Banking due to the lack of strict regulations and laws. Suresh Chandra Bihari and Sudeepta
Pradhan (2011) tried very hard to research the practices of CSR (green initiatives) for important
Indian banks running successfully in the Banking Sector. He found out that CSR practices (green
initiatives) is having a positive impact on the banking performance and image building. Nath et al.
(2014) examined the practices implemented in green banking of India's top public sector and private
sector banks and concluded that if Indian banks want to enter the global economy, understanding
their obligations as a global corporate citizen is important to them. Ravi Meena (2013) discussed
about different important areas of green banking, such as its advantages, practices while adopting
green banking, measures implemented by banks in the Indian banking sector and finally suggestive
measurements needed to be taken by banks to facilitate green banking concept.
According to RBI report published in IRDBT in the year 2014 illustrates that green banking is
designed that makes internal banking process, physical or visible structures and Information
Technology(IT) services to be productive and successful/comfortable as possible, with zero or less
environmental effects. They had adopted Indian banks' green quality criteria, which are called

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“Green Coin Ratings”. In this rating system, banks are calculated on the grounds of their carbon
pollution and the volume of new, refurbished and reused material used in their furniture and
appliances, such as computers, devices, scanners, networks etc. These are also judged by the amount
of sustainability projects that such funds offer, and on grants or prizes to borrowers for greening their
businesses. Garg (2015) focused on green banking approaches and their needs.
Nonetheless, the analysis of literature shows that some research whose results were not the same as
those of others or contrary to the research writing given by Hamilton (1995) have led to the
discovery and clarified that firms that monitor emissions and disclose carbon footprints have been
stated to be less profitable. In addition, after using the mentioned results above, some of the
researchers reported that there is the existence of no related relation exists in between the Green
Banking programs and the profitability of the firms and companies (Chen and Metcalf, 1980).
Based on the review of work done by esteemed researchers and some literature work, the following
hypothesis were formulated as follows:
From the research inputs, the key hypothesis of our analysis is that the banks that practice Green
Banking are having the capability of influencing the net/total income of the firms or companies.
H0: There is no existence of major relationship between green initiatives/banking and the bank’s
profit margin in India.
H: There is existence of major relationship between green initiatives/banking and the bank’s profit
margin in India.

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 RESEARCH METHODOLOGY
3.1. Objectives of the Study
The principal aims of this research are:
1). To consider the importance and sense of Green Banking.
2). To understand the effect of green banking on Indian banking.
3). To understand the impact Green Banking has on bank profitability.
4). Understanding the relationship between profits and sustainability ("Green Banking" through
mergers or partnerships with industry).

3.2. Data and Sample Selection

Since our objective of this paper was to understand and compare relationships between profitability
(financial performance) and green banking (Environmental performance) of different for a certain
period of time. Therefore, we use regression method in which we take financial variables such as net
income, profitability expenditures and environmental performance (Green Banking) variables.
For this research writing, we have taken the selected sample banks namely STATE BANK OF
INDIA (SBI), PUNJAB NATIONAL BANK (PNB) and BANK OF BARODA (BOB) from public
sector banks and AXIS, HDFC and KOTAK MAHINDRA from private sector banks. The required
data was taken from RBI websites, annual reports of the banks, and various online sources. In order
to analysis the relationship, we have taken annual data (profit and loss accounts statement) for
income margin, net income and total expenditures for a period ranging from March 2009 to March
2014 as one input in order to compare the data of first 5 years where green banking was adopted by
almost all the banks whereas we have taken 2014 (after march period) to March 2019 as our second
set of 5 years in order to compare relationship sequence between profits and green banking using
these two sets of years.
To collect the data required to carry out the results relating to the adoption of green initiatives or
green banking of individual banks, the annual reports of the respective banks were thoroughly looked
after and necessary data was collected. Similarly, online trading sites like www.moneycontrol.com
also helped me to find data regarding particular banks. The definition of Income margin or margin of
income was taken into account as it is mostly seen as a measure for “profitability” of the company
(Uri, 1988; Molyneux and Forbes, 1995) in many of the cases. The required bank’s sample data was
taken from different sources were carefully analysed and examined and the green banking adoption
years were noted and obtained from different reputable sources namely as websites of the bank
(annual reports), publications (mainly internet and newspapers or journals) and other sources as seen
in the table below.
Table No. 1: Data showing Green Banking implementation year wise
Implementing/adoption Year for Green Banking implemented by Indian Banks
Green Banking
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 1996 UNION BANK OF INDIA
2003 SYNDICATE BANK
2005 CORPORATION BANK and YES BANK
2007 SBI, OBC and ICICI
2008 INDUSTRIAL BANK, BANK OF BARODA, DENA BANK and
KARNATAKA BANK
2009 ANDHRA BANK, PNB, HDFC and INDUSIND BANK
2010 AXIS BANK and KOTAK MAHINDRA
2011 IDBI and CANARA BANK
2013 IDFC
Source: Author’s Compilation

After collecting the required data and analysing, Table 1 clearly identifies and shows that the year of
2003 (only Indian sector banks are considered) and 2009 (only Indian sector banks are considered)
were the landmark and historical years in the history of green banking. This is so because as a greater
number of the banks initiated practicing nature - friendly Banking or green banking in these two
years. But we have taken banks SBI (2007), BOB (2008), PNB and HDFC (2009), AXIS BANK and
KOTAK MAHINDRA BANK(2010) as our targeted banks to study. Since we have taken different
Banks data from March 2009 to March 2019 in two sets of 5 years each, it has been clearly notified
in Table No. 1 that some of our studied banks have not adopted green banking policies till 2009
(AXIS BANK and KOTAK MAHINDRA BANK), therefore the green banking column in that year
will be written as 0 = not implemented) . However, by the end of the year 2012, the greater number
of Indian banks running in the banking sector have initiated to work actively in favour of reducing
carbon footprints or to reduce pollution levels and started to take green initiatives as a mandatory
exercise for securing a healthy planet. After that, the data collected through various reliable sources
were looked after and framed to work upon.
3.3. Research Tool and Model

Based on the data, Regression was the tool used to understand the relations between the dependable
variable (margin of income) and independent variables (net income , expenditures and green banking
implementation). The “Green Banking” implementation has been used mainly a ‘Dummy Variable’,
when analysing the data (‘0’ as not implemented and ‘1’ as implemented). The main objective of
choosing and selecting the method of regression was to show comparison and based on that,
analysing the regression lines in order to determine the deviation caused by the introduction of Green
Banking activities in the banks. The two sets of observational years were ranged between March
2009 and March 2014, the set of years in which the implementation or adoption of Green Banking
was introduced in almost maximum number of Banks and (period after March) 2014 – March 2019,
the set of years in which the greater number of banks carried out green banking with a little bit of
investment towards the environment. The comparison between two set of 5 years will give a proper
idea regarding impact of green banking on profitability and which might have given a significant
result on profitability.
The regression equation for the study as:
InMgit=  + β1NIit + β2Expenses + β3GBit + eit
Where,
InMg = Income margin/margin of income (‘Profit Before Interests and Income Taxes/Total
Income’ ,.i.e., PBIT/IT)
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NI = Net Income of the firms or companies
Expenses = Total Expenses made by the banks
GB = Implementation/Adoption of Green Banking by the banks
and β1 (beta 1), β2 (beta 2), β3 (beta 3) are the Coefficients for the independent variables calculated
for firm or companies i (1, 2, ...6) for the time period t1 (2009 - 2010, 2010 - 2011, ..., 2013 - 2014)
and t2 (2014 - 2015, 2015 - 2016, ..., 2018 – 2019), e is the error term.

ANALYSIS AND INTERPRETATION OF RESULTS

By collecting the required data, an analysis was done using the statistical tool ,i.e., regression method
in which we take the income margin or margin of income (dependent variable) and net income ,
expenditures and green banking implementation/adoption (independent variables) for the set of years
from March 2009 to March 2014 and (Period after March) 2014 to March 2019 respectively. The
calculated and achieved regression result for the years from March 2009 to March 2014 is shown in
Table No. 2.
Table No. 2: March 2009 – March 2014 Results
MODEL SUMMARY
MODEL R R SQUARE ADJUSTED STANDARD
R SQUARE ERROR OF
DEPENDENT THE
VARIABLE: ESTIMATES
INCOME MARGIN
1 0.841 0.707 0.674 2691.25580
ANOVA
SUM OF SQUARES DEGREE OF MEAN F SIGNIFICANC
MODEL FREEDOM SQUARE E

1 REGRESSION 455.665 3 151.555 2.593 0.000b

RESIDUAL 188.692 26 724.796
TOTAL 643.357 29
REGRESSION RESULTS
UNSTANDARDIZED COEFFICIENT STANDARD T SIGNIFICANC
BETA STANDARD COEFFICIEN E
MODEL
ERROR TS BETA

1 (CONSTANT) 2404.966 1941.371 1.239 0.226

NI 2.379 0.357 18.923 6.670 0.000
EXP -2.511 0.385 -18.491 -6.530 0.000
GB -1958.283 2163.236 -0.105 -0.905 0.374
Source: Author’s Calculation (SPSS 26)

Table No. 2 shows that the regression test was conducted for independent variables under current
study and other regression statistics. From the calculative analysis done above, the R-square results
gives an idea and shows the relation between Bank related independent variables to the dependent
variable means how net/total income, expenditures and green banking are in relation to bank
profitability. Similarly, the adjusted R-squared statistical calculation demonstrates the rigorousness
of additional variables which are independent with some statistical shrinkage. As seen above, the
high value of R- square (0.707) and Adjusted R – square (0.674) ensures that the explanation of the
model is very high in terms of calculations and maintains a fit model for all above.

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Our study revealed that the results obtained in Table No. 2 in the Indian banking sector from March
2009-March 2014 showed that there was the relationship between net/total income and expenditures
having profitability exists and was of utmost significance before the green banking concept was
introduced. But as we can see that, the relation in between Green Banking introduction and
Profitability was expected and seen negligible. Similarly, there was seen positively connected
relation between profitability and net/total income. But at p<0.05, a negative relation to expenditures
was observed. At p<0.1, the fitness of the above mentioned model was all significant. The similar
analysis was conducted for the years from (period after March) 2014 to March 2019, with the results
shown in Table No. 3.

Table No. 3: (Period After March) 2014 – March 2019 Results

MODEL SUMMARY
DEPENDENT MODEL R R SQUARE ADJUSTED R STANDAR
VARIABLE: SQUARE D ERROR
INCOME MARGIN OF THE
ESTIMAT
ES
1 0.577 0.332 0.283 13890.041
ANOVA
MODEL SUM OF SQUARES DEGREE OF MEAN F SIGNIFIC
FREEDOM SQUARE ANCE
1 REGRESSION 259.648 2 129.324 6.723 0.004b
RESIDUAL 520.191 27 192.118
TOTAL 779.839 29
REGRESSION RESULTS
UNSTANDARDIZED COEFFICIENT STANDARD T SIGNIFIC
MODEL BETA STANDARD COEFFICIEN ANCE
ERROR TS BETA
1 (CONSTANT) 1826.008 3839.289 4.757 0.000
NI 0.747 0.272 3.295 2.743 0.011
EXP -0.859 0.283 -3.649 -3.038 0.005
GB 0.000 0.000 0.000 0.000
Source: Author’ Compilation (SPSS 26)

Table No. 3 shows that the regression test was conducted for independent variables under current
study and other regression statistics. From the calculative analysis done above, the R-square results
gives an idea and shows the relation between Bank related independent variables to the dependent
variable means how net/total income, expenditures and Green Banking are in relation to bank’s
Profitability. Similarly, the adjusted R-squared statistical calculation demonstrates the rigorousness
of additional variables which are independent with some statistical shrinkage. As seen above, the
high R- square (0.332) value and Adjusted R - square (0.283) value ensures that the explanation of
the model is very high in terms of calculations and maintains a fit model for all above.
The results shown above in the Table No. 3 for years ranging from (period after March) 2014 -
March 2019 for Indian banking sector showed that there is a relationship which is significant
between the net/total income and expenditure with income having profitability after adopting Green
Banking practices. Since, the relationship observed and occurred between green banking
implementation/adoption and profitability was however seems to be negligible. The Profitability
factor was positively in relation to net/total income while at p<0.05, a negative relation to
expenditures is seen. Therefore at p<0.05, the fitness of model shown was fit for all. Since, years
from March 2009 to March 2014 and (period after March) 2014 to March 2019, the overall model fit
improved. The findings calculated from Table No. 2 and No. 3 clearly indicate that net income and
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expenditure significantly affect the profitability of banks. But green banking initiatives do not
significantly affect the profitability of the Bank. Thus, we do not condemn H 0 and conclude that
there is no existence of major relationship between green initiatives/banking and the bank’s profit
margin in India.

DISCUSSION AND CONCLUSION

This paper revealed that the findings obtained in Table No. 2 shows the presence of a substantial
relation between net/total income and expenditure with income having profitability in the Indian
banking sector from March 2009 to March 2014 before green banking was introduced. The
relationship between green banking execution and productivity was nonetheless negligible.
Profitability was linked positively to net profits at p<0.05 but not likely with expenditures as it was
linked negatively to expenditures at p<0.05. Similarly at p<0.1, the good to fit of the above all model
was more important. The similar analysis was conducted for the years from (period after March)
2014 to March 2019, with the results shown in Table No. 3.
The calculation and results yield for the years (period after March) 2014-March 2019 for the Indian
banking sector as calculated above have been shown in Table No. 3. The study showed that after
green banking has been implemented, there is a conclusive evidence showing that significant or
related relationship exists between net/total income and expenditures with income having
profitability. The relationship is seen between green banking implementation/adoption and
profitability was however seen as negligible. As per the calculations done, Profitability was
positively and directly related to net income. Similarly, a negative relation was observed with respect
to expenditures at p<0.05. This statement gives conclusion that at p<0.05, the fitness of model was
important above all. From years from March 2009 to March 2014 and (period after March) 2014 to
March 2019, the overall model fit improved. The figures shown in Table No. 2 and No. 3 clearly
demonstrate and evidences that the profitability of the bank is substantially influenced by net Income
and expenditures. But by implementing or adopting green banking programs, it is not so substantially
or insignificantly linked .
As we have highlighted the impact of India's different public and private sectors while implementing
Green Banking. In doing so, we tried to try to develop and explore the relationship between green
banking and its effect on the net profits of different banks operating in India. Our research writing
findings showed that there is not a substantial relationship exists between the green banking or green
initiatives and their financial output (profitability) in India's banking sector. The results obtained
were close to those of previous researches carried out by some known researchers such as Chen and
Metcalf (1980), Jaggi and Freedman (1982) and Cordiero and Sarkis (1997). This was essentially
made effort to add on to the current green banking philosophy and to lay the groundwork for
potential researchers and opportunities for the future.

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 LIMITATIONS

Each research area has plus and negative points while writing or analysing and so is the case here.
The following limitations were identified and noted in the analysis that need urgent attention and
improvements which reduces carbon emissions and helps us to see a growing green banking arena in
India. The key and significant loopholes or weaknesses as defined and seen by the Indian banks
needing guidance from regulatory bodies to solve these gaps:
1). Creating Awareness and understanding of biodiversity or environmental issues, international
standards for protecting the nature and frameworks required to build greener initiatives.
2). Training and development of appropriate tangible skills in order to recognize the green banking
principles among bank workers, so that they can use and apply when working in the offices and
implementing in the core banking operations.
3). In terms of financing these climate change programs such as the IMF and the low cost green fund
of Indian banks, an international strategic plan for green initiatives may exist. This would enable
developing countries to address the problem of sustainable development or green banking and faster
economic growth by introducing green economy.
As there is a global debate on green initiatives and a large consensus needs to be reached that will
involve new investments and new investors as well as other expenditure on a vast scale to respond
effectively to climate change conditions. This international collaboration will definitely help in this
aspect and helps us to enable the emerging growing countries to tackle the environmental damages
and its ill effects with certain challenging situations .

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 FUTURE SCOPE OF WORK AND RECOMMENDATIONS

As we know that before writing a research, first of all we need to think about that and has to find that
whether this topic has any relevance or not, whether there is any scope for future researchers or not.
Keeping these things mind, we begin to research and that we have given conclusions based on our
understanding for further scope.
The following things are needed to be keep in mind before recommending this to take research to
next level or higher aspect.
1). A cost-benefit start should be made before further analysis of the implementation of researchable
green banking is carried out.
2). A measuring instrument or judging scale could be made that can help us to understand the impact
of green banking while adopting/implementing to a larger extent.
3) Work can be expanded further by taking into account other factors and researching their
interactions and their impact on the betterment of the nature.
As we know that this writing study tries to show conclusive evidences that green banking helps to
minimize carbon footprints or carbon emissions, which are of the utmost importance today. Due to
researches made by various researchers about green banking, the matter for concern is its future
scope. In India, mostly banks are on the verge of development so, it’s difficult for them to implement
Green Banking as part of their banking services. One of the main reasons could be the need for larger
amounts of initial investments for these activities which might be a losing deal in terms of profits .
We found that Green Banking (Environmental Performance) and Profitability (Financial
Performance) were not significantly linked. According to previous statement, green banking
initiatives/policies do not improve/increase the profitability of banks, there could be other
microeconomic factors that lead to and are helpful. To sum up and conclude, India's banks need a
long way to go to bring green banking practices together and make their economies green.

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WEBSITES

[1] www.pnbbank.com

[2] www.axisbank.com

[3] www.hdfcbank.com

[4] www.sbibank.com

[5] www.kotakmahindra.com

[6] www.bobbank.com

[7] www.moneycontrol.com

[8] www.bseindia.com

[9] www.nseindia.org

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