CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION
Environment protection is one of the important duties of any business organization. As a
financial organization of our country banks play an important role in addressing environmental
issues both in terms of obligation and opportunities by virtue as a responsible corporate citizen
and a financier. The banking industry influences economic growth and development both in
terms of quality and quantity, leading to a change in nature of economic growth. Therefore,
banking sector plays a crucial role in promoting environmentally sustainable and socially
responsible investment.
Green banking is a new phenomenon in the financial world. Green banking entails banks to
encourage environment friendly investments and give lending priority to those industries which
have already turned green or are trying to go green. It helps to restore the natural environment.
Green banking combines operational improvements, technology and changing client habits in
banking business. Simply, it means promoting eco-friendly practices. This comes in many forms
such as using online banking instead of branch banking, paying bills online, opening up CDs and
money market accounts at online banks.
Green banking promotes environment friendly practices of banking activities, it reduces carbon
footprint from banking activities. Green banking is like normal banking which considers all the
social and ecological factors which aims to protect ecology and conserve natural resources. It is
also known as ethical [Link], ethical banking avoids as much as paperwork as
possible and rely on online transaction for processing. Green banks adopt environmental
standards for lending that would enable eco-friendly business practices which benefits our future
generations. Use of online banking instead of branch banking saves time of customers. Natural
resource conservation is also one of the main principles in a green banking. 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 customers 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 too little to support environment initiatives
with the money you deposit with them. Green banking is also gaining much importance in recent
times, most of the banks are undergoing computerization, networking and offering online
banking to customers reduces the use. of paper directly and indirectly resulting in pollution
control.
1.2 STATEMENT OF PROBLEM
Green banking promotes environmentally friendly banking practices. simply, it is a form of
banking which ensures less utilization of natural resources and optimal reduction of wastage of
paper. Green banking is being practiced by all banks. Which consider all the social and
environmental–technological factor with and aim to protect the environment and conserve the
natural [Link] banking practices are also known as ethical banking or sustainable
banking. So, this is one of the important developments in the banking industry.
1.3. SIGNIFICANCE OF GREEN BANKING
The study of conducted for knowing the 'green bank'. The green banking optimizes costs,
reduces the risk, enhance banks reputation 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. Indian banks can adopt green banking as business model for sustainable banking.
1.4. SCOPE OF GREEN BANKING
The study of green banking is help to make our environment human friendly and enrich our
economic productivity. It is given the benefits for environmental Benefits, benefits to the
customers, benefits to the bank. It help to improved image, improved customer service,
eliminating paper work, reduced waiting costs and enhanced flexibility.
1.5 OBJECTIVES OF THE STUDY
1. To assess the level of awareness regarding green banking among the general public, bank
customers, and bank employees.
2. To analyze the level of customer satisfaction with respect to green banking services.
3. To identify the benefits and challenges faced by customers in adopting green banking
initiatives.
1.6 RESEARCH METHODOLOGY
1.6.1 Research Design
The present study is to undertaken to examine the customer awareness about the Green
Banking Initiatives. Cherpulasseri Grama panchayat is selected for the purpose of study. In
this study descriptive research design has been used for data collection. This design portrays
accurately the attribute of a particular individuals.
1.6.2 Sources of Data
The present study makes use of primary and secondary data.
Primary Data
Questionnaire was used to collect primary data from the respondents. The questionnaire was
structured type and questions related to consumer awareness about green banking. Few
questions in the questionnaire offer multiple choices questions.
Secondary Data
•Information collected through newspapers, journals, magazines.
• Through internet.
1.6.3 Sampling Method
Sample Size: 50 respondents
Sample Area: Cherpulassery
Sample Unit: Customers of SBI
Sampling Technique: Here both random and non-random sampling, method was used for the
purpose of the study.
1.6.4 Tools for Analysis:
In order to analyses the data collected, percentages, Diagrams, Charts were used.
1.7 PERIOD OF STUDY
The project is completed within 21 days.
1.8 LIMITATION OF THE STUDY
•The study was mainly confined to Cherpulasseri Grama Panchayat.
• The sample consisted only 50; there can be difference between results of sample from total
population.
• Customers of SBI included in the study.
• The study covers only customer awareness about green banking.
• Limited time was one of the limitations.
1.9 STRUCTURE OF THE REPORT
Chapter 1: Introduction – Overview, objectives, scope, and methodology of the study. Chapter 2:
Review of Literature – Previous studies related to green banking. Chapter 3: Theoretical
Background – Concepts and practices of green banking. Chapter 4: Data Analysis and
Interpretation – Analysis of collected data. Chapter 5: Findings, Suggestions, and Conclusion –
Summary and recommendations.
CHAPTER 2
REVIEW OF LITERATURE
LITERATURE REVIEW
Review of past research study provides the researcher the background information needed and help to
decide upon the area not studied. It helps to identify the research gap between the past and present study
and identifies the area which have to be concentrated. It also provides the way of future studies by
identifying the areas not yet covered by any researchers. The literature specifically addressed to the
consumer awareness about the Green Banking Initiatives. The given below are the major studies
conducted by the various researchers
1)Shweta Sharma, Aakanksha Agarwal (2022) conducted a study on Influence of Corporate
Sustainability on Providing Electronic Payment Services by the Banking services.
2) Anum Ellahi , Hammna Jillani ,Hesan Zahid (2021) This study measures the individuals perception
and responses to the green practices as adopted by the [Link] research is exploratory in nature
.Structural Equation Model is used as a measurement model and 400 responses were [Link] results
of the study shows that customers are receptive of the change bought on by banks green initiative and are
willing to adopt [Link] study reveals that green banking awareness is dependent on the age , gender,
occupation, of the individual and is influenced by traits of sustain able banking practices
3)Solekah , Nihayatu Aslamatis (2019) published an article on the effect of green banking product and
green corporate image on green customers satisfaction syariah banking meditation. This study developed
a research framework to explore the relationship between green banking products and green corporate
image green customer satisfaction and green customer loyalty for Syariah banking. The results showed
that for green banking products and green corporate image effect directly on green customer satisfaction
but green banking product has not to affect directly to customer satisfaction, opposite green the corporate
image that affects directly to the green customer loyalty.
4) A Charan , Rekha Duhiya , Manpreet Kaur(2019)has conducted a research and published an article
about Customer Perception towards Green Banking Practices in India .This study focus on the status of
green banking practices in India and to identify the consumer perception towards green banking
.Sustainable development goals and climate change are now prominent issues in order to save our planet
from unnatural industrial development and human interventions. This is a study to find out the status of
current green banking practices, awareness among customer and customer perception towards green
banking practices in India.
5) Chen Zhixia, Md Miraj Hossen, Sayed Sami Muzafary , Begum Mareum (2018) ,they published an
article on Green banking . This paper tries to highlights the status of green banking practice , progress and
different green initiatives taken by Bangladeshi banks to keep the environment sustainability .The report
reveals that Bangladeshi banks are doing well sustainable banking and green practices aids the banking
institutions to attract the regulator , customers ,public .Finally study concludes that mentioning some
suggestions to make the practices effective through gathering experiences from different research from
different country
6) GP Raj ,AP rajan (2017) in their study Green Banking initiatives taken by the largest public sector
bank in India and the awareness and perception t of its customers towards such initiatives. SBI is the first
public sector bank to introduce Green Banking products, it is chosen for this research. This study will help
to SBI to know about their customers perception about the Green Banking initiative taken up by it. This
study will also help to know the satisfaction level of the customers on Green Banking productsintroduced
by SBI.
7) Bibhu Prasad Sahoo,Amandeep Singh,Neeraj Jain (2016) This paper try to find out the
implementation of Green Banking products among customers with different age [Link] and post
hoc tests are applied for analyzing the [Link] paper explains that there is a significant difference
in the usage of green banking products across various age group individuals , as young generations is
more inclined towards green banking products than middle age and senior age [Link],more
awareness is need to be created among the middle and senior age groups individuals.
8) Kanak Tara ,Saumya Singh, Ritesh Kumar(2015) published an article on Green Banking for
Environmental management: A Paradigm Shift. This paper studies on the stages, initiatives , benefits
,future of green banking in Indian context and undertaking the green banking philosophy adoption by
banks . This paper also attempts to find various guidelines for environmental conservation and
sustainability along with initiatives taken by State Bank of India and ICICI bank.
9) M Zubair Hossain, Mahajabeen Ahmad,Nabila Nisha(2015) conducted a study on consumer
attitudes and perception towards green banking in Bangladesh. This study shows on the present status of
the banks in complying with Bangladesh banks Green Banking policy to save the environment as well as
to increase financial sustainability . This study mainly tends to look into ,is the general perception and
awareness of people regarding [Link] of green banking in Bangladesh, their perception on the
environment in Bangladesh ,their satisfaction and acceptability of the current range of “green” products
and services that are being offered by the banks operating in Bangladesh and their attitudes towards banks
which adopt and practice Green Banking initiatives ,thereby impacting the environment , environment
responsibility as well as environmental performance in their activities.
10) Neyati Ahuja (2015) try to conduct a review of literature on Green Banking and find the majour
implementation of this greenphenomenon. This study enlights lack of consumer awareness and education
as a major hindrance. Public sector banks are keener in adopting green banking practices while compared
to public sector Banks’s is taken as a case to show what all steps banks can take to face the green
challenges.
11) Sharma, gopal et al (2014) presented "A study on customer awareness on green banking initiatives in
selected public &private sector banks with special reference to mumbai" to find out the consumer
awareness regarding green banking in India. It was found that three fourth of the people using online
services are not aware of the term. “Green Banking “. Theirknowledge to green banking is just limited to
online payment of bills and cash deposition
12)Fayes Ahmad ,Nurul Mohammad Zayed, Md Harun (2013) in their study examined the green
banking activities of Bangladeshi commercial banks and find out the reasons behind adopting green
[Link] conducted their study by taking responses of 300 employees from ten commercial
[Link] analysis used to analyze the data ,from this analysis it has been found that six factors namely
economic factor, policy guideline, loandemand, stakeholderpressure, environmental interest ,and legal
factor are the major influencers .
13) Hardeep singh and Binkram pal singh (2012) in their paper "An Effective & Resource full
contribution of green banking towards sustainability “. stated that green banking more often will decrease
paper work in organizations other than making mindfulness among banking individuals about ecological
amicable practices in operations. They also found in their investigation that banks in India. Are a long
way behind in green banking with regard to developed nations. They recommended that to content with
developed nations banks, in India. Need to make mindfulness execution and incorporate green banking in
their everydaybusiness operations.
14) Goyal&joshi(2011)considered social and moral issues. For example, social banking, moral banking,
green banking, which help the achievement of reasonable advancement of banking. They inferred that
banks can execute as a socially and morally acclimated association by advancing loans just to those
organization which have green concerns.
15)Nigamananda Biswas (2011) has conducted a research on Sustainable Green Banking Approach :The
need of the hour. This paper studies on major benefits, challenges, strategic aspects a green banking. It
also shows the present status of Indian Banks as far as green banking adoption is required. Banks should
go green and play an important role to take environmental aspects as part of their lending principle, use of
appropriate technology and management system.