A Study of Green Banking Initiatives by Public and Private Sector Banks

Abstract

Green banking is a concept that refers to practices and principles that make financial institutions profitable, environmentally friendly and healthy. Its aim is to make banking processes and the use of IT and physical infrastructure as efficient and effective as possible with zero or minimal impact on the environment. Green banks are developing technology in the banking sector, increasing efficiency and changing the customer experience. This is a smart and thoughtful way with a vision for the future. Banking operations are not physically dependent on the environment, but are driven by external influences on the core activities of customers. Green banks are different from conventional banks. Their main aim is to promote environment friendly businesses. Green banking refers to banking operations that are compatible with reducing internal and external carbon emissions. The aim of this study is to understand the use of green products in the banking sector and to analyze the green financial measures adopted by government and private banks. The study is based on primary data collected by 136 respondents from various public and private banks in Uttar Pradesh. The study revealed no correlation between various measures taken by private and public sector banks in implementing green finance. The study also disclosed that private and public sector companies are relying less on banking solutions and are using e-waste management to implement good environmental practices. The study presented that 100% of public and private banks use internet and mobile banking. The main aim of green banking is to minimize customer time and costs and impact the principles of sustainability, ethical lending, maintenance and energy efficiency.