Study of Green Banking in Environment Sustainability - Role of Indian Banks

Abstract

Purpose: Banking Sector plays a major role in shaping the economy of the country. Nowadays banks develop inclusive strategies that leads to substantial economic development and environmental friendly practices as well. The main stakeholder in the industrial sector is banking and it is possible that it can face both liability and credit risk. Further, environmental aspect can also impact the value of assets and also percentage of earning of banks in the long-run. Therefore, banks are expected to performanoptimistic role to go green and instil and include the environmental and ecological factors in their policies which will ultimately force industries to make investment in environmental sustainable industries. The conventional banks are becoming green banks by shifting their existing operations towards the environmental concerns. Banks are actual catalyst which can really promote economic growth of an economy by accepting green banking which is a part of Corporate Social Responsibility (CSR). Green Banking is a departure from traditional banking since it envisages a socially and environmentally responsible role for banks. Green Banking applies the principles of sustainability i.e. people, profit and planet in the provision of credit. Ethical banking or sustainable banking is the other name for Green Banking It is paperless banking which not only include the less use of paper but also reduces the use of energy and power. In today’s age of globalisation, environmental issues are gaining importance and there is pressure on banks to go green and finance industries which work towards reducing carbon footprints. This paper focuses on the concept of Green banking and green banking initiatives of Indian banks.

Design/Methodology/Approach: Descriptive approach based on secondary data.

Originality/value: The research paper studies the concept of Green banking and initiatives taken by banks as banks are expected to perform an optimistic role to go green and instil and include the environmental and ecological factors in their policies which will ultimately force industries to make investment in environmental sustainable industries.