Green Banking Adoption And Perceived Financial Performance: An Empirical Study Of SBI Customers In The Twin Cities Of Odisha

Abstract

This study investigates how green banking adoption influences customers perceived financial performance in State Bank of India (SBI) branches located in the twin cities of Cuttack and Bhubaneswar, Odisha. It addresses a notable gap in Indian sustainable finance research, where customer level financial consequences of green banking have received limited attention compared to studies on awareness and satisfaction. Primary data were collected from 384 SBI customers using a structured five-point Likert scale questionnaire measuring cost efficiency, financial accessibility, green product awareness, perceived risk reduction, digital green service usage, and perceived financial performance. Descriptive statistics, reliability testing, Pearson correlation, and multiple regression analysis were conducted using SPSS 27. All measurement constructs showed strong reliability, and correlation analysis indicated significant positive relationships between the independent variables and perceived financial performance. The regression model was highly significant, explaining 63 per cent of the variance in financial performance. Cost efficiency was the strongest predictor, followed by digital green service usage and financial accessibility, while awareness of green products and perceived risk reduction also showed meaningful positive effects. The findings suggest that customers perceive SBI’s green and digital services as cost effective, time saving, convenient, and financially advantageous, although knowledge of specialised green products remains relatively low. The study contributes to sustainable finance by demonstrating that green banking enhances both environmental outcomes and customer level financial perceptions. It also offers practical guidance for SBI and policymakers to improve green product communication, digital infrastructure, and security measures to strengthen green banking adoption in emerging urban centres.