GREEN BANKING"

BACHELOR OF MANAGEMENT STUDIES

SEMESTER-V
SUBMITTED
IN PARTIAL FULFILLMENT OF THE REQUIRMENT
FOR THE AWARD OF DEGREE OF
BACHELOR OF MANAGEMENT STUDIES
BY
NIKITA ANIL SINGH
ROLL NO. 551630
MODEL COLLEGE OF SCIENCE AND COMMERCE
CHINCHPADA, KALYAN (E)

DECLARATION
I, NIKITA SINGH the student of T.Y.B.M.S Semester v (2016-2017) hereby declared that I
have completed the project on GREEN BANKING. The information submitted is true and
original to the best of my knowledge.

Signature

NIKITA SINGH
ROLL NO.551530
MODEL COLLEGE OF SCIENCE &COMMERCE
CHINCHPADA, KALYAN (E)

ACKNOWLEDGEMENT
To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.
I would like to thank my Principal, Mr.Bramhavale for providing the necessary facilities
required for the completion of this project.
I take this opportunity to thank our Coordinator Prof. Asha Jain for her moral support and
guidance.
I would also like to express my sincere gratitude towards my project guide Prof. Asha Jain
whose guidance and care make the project successful.
I would like to thank my college library, for having provided various reference books and
magazines related to my project.
Lastly, I would like to thank each and every person who directly and indirectly helped me in
the completion of the project especially my parents and peers who supported me throughout
my project.

EXECUTIVE SUMMARY
The problem related to environment, maintaining the ecological balance and environmental
sustainability has become issues for debate around the globe. The organizations as well as
consumer have understood the importance of the environment for the survival of human
beings. Banking sector plays an important role in the economic growth of a nation. As the
banks are among one of the major sources of financing instrument for commercial projects so
they can play a major role in promoting environmental sustainability by funding the socially
and environmentally responsible investment projects. The concept of Green banking is
comparatively a new concept. It is a paperless banking, which not only reduces the cost of
banking activities but also helps in environment sustainability. It helps in reducing the use of
paper, power and energy. The main objective of this paper is to know about the role of green
banking in environment sustainability in Indian public sector banks and conduct a SWOC
analysis about the banking sector regarding green banking activities. However, we find that
there has not been much initiative in this regard by the banks in India though they play an
active role in Indias emerging economy. Therefore, we suggest possible policy measures and
initiative to promote green banking in India.

OBJECTIVES OF THE STUDY

To identify the various initiative taken toward green banking and environment

sustainability by public sector banks in India.

To conduct SWOC analysis of green banking practices of the public sector banks in

India.
To study concept of Green Bank
To identify the steps necessary to adopt Green Banking
To check the awareness of green banking among bank employees, associates and
general public.
To create awareness about green banking among the general public and consumers
and bank employees.

SIGNIFICANCE OF GREEN BANKING

Basically Ethical (Green) banking avoids as much paper work as possible and relies
on online/electronic transactions for processing so that you get green credit cards and

green cutting
Creating awareness to business people about environmental and social responsibility
enabling them to do an environmental friendly business practice.

Green (Ethical) banks adopt and implement environmental standards for lending,
which is really a proactive idea that would enable eco-friendly business practices

which would benefit our future generations.

When you are awarded with a loan, the interest of that loan is comparatively less with
normal banks because ethical banks give more importance to environmental friendly
factors - ecological gains. Natural resources conservation is also one of the underlying
principles in a green bank while assessing capital/operating loans to
extracting/industrial business sector.
Green Banking as a concept is a proactive and smart way of thinking with a vision for
future sustainability of our only Spaceship Earth - as design science explorer Richard

Buckminster Fuller called our Earth.

J LEED-certified buildings to better loan rates for buying an energy-efficient house or
car. Its also a chance to put your money where your mouth is as an environmentalist,
advocates say, because green banks which tend to be community institutions take
customer personal deposits and in turn reinvest them in local sustainable businesses

RESEARCH METHODOLOGY
This paper reviews the literature on the basis of secondary data collected from various
sources such as articles, research papers, annual reports, sustainability reports, companys
official websites etc. For analyzing the green banking initiatives taken in India top
performing banks are selected in both public and private sector.

CHAPTER : 1
INTRODUCTON
In India, green banking is in its initial phase. Banks can utilize green banking as an
opportunity to gain advantage in the market by creating a difference in their strategy making
process. Also, banks need to be more active in communicating the green banking concept and
its associated benefits to the consumers. It was also observed that green banking

consciousness is high in the higher levels of management in the banks and this consciousness
reduces with the lower levels of management and least with the employees who are in day to
day direct touch with the customers. Thus, the banks must focus on promoting the
consciousness and benefits of the green banking to the employees who are in direct touch
with the customers. Green banking is a pro-active way of energy conservation and
environment protection. The prime benefit of the green banking approach is the protection of
the natural resources and the environment. Green banking avoids paper work to the optimum
leveland focuses on electronic transactions like use of ATM, mobile banking, online banking
etc for various banking transactions by the customers. Electronic transaction not only aids
towards sustainability but also provides convenience to the customers as well as to the banks.
Less paperwork means less cutting of trees. For implementing eco friendly business, banks
should adopt environmental standards of lending as it improves the asset quality of the banks.
This activity of the bank also has a very significant influence on the environmental
performance of its clients. This forces the clients to perform in an environment friendly way.
This not only enhances the reputation of the bank but also helps them face the environmental
regulations in successful way and thus leading to better legal risk management by the banks.
The banks normally grant loan to the clients on a low rate of interest. This promotes more and
more entrepreneurs to start with environment friendly projects and thus leads to more and
more awareness on the environment protection activities in the economy as a whole. It is thus
a win-win approach by the banks as it not only benefits the environment but also the banks
and its customers as a whole.

GREEN BANKNG
The concept of Green Banking is attached to Triodos bank (established in 1980) from Dutch
origin which started the environmental sustainability in the banking sector from the very first
day. In the year 1990 the bank launches Green fund for funding environment friendly

projects and all other projects follow later. Taking example from this bank the banks all over
the world start taking green initiatives in the banking sector. Institute for Development and
Research in Banking Technology defines Green Banking as Green Banking is an umbrella
term referring to practices and guidelines that make banks sustainable in economic,
environmental, and social dimensions. It aims 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. Jha & Bhome defines green banking as means of promoting
environmental friendly practices and reducing carbon footprint by banking activities. So it
can be concluded that Green Banking approach involves using environmentally friendly
practices at every level from adapting environment friendly practices within the banking
organizations and also considering the environmental aspect of the projects while funding and
investing in commercial projects. According to RBI (IDRBT, 2013), green banking is to make
internal bank processes, physical infrastructure and Information Technology effective towards
environment by reducing its negative impact on the environment to the minimum level.

ENVRONMENTAL SUSTANABLTY
Environmental sustainability involves making decisions and taking action that are in the
interests of protecting the natural world, with particular emphasis on preserving the capability
of the environment tosupport human life. It is an important topic at the present time, as
people are realising the full impact that businesses and individuals can have on the
environment. Environmental sustainability is about making responsible decisions that will
reduce your business' negative impact on the environment. It is not simply about reducing the
amount of waste you produce or using less energy, but is concerned with developing
processes that will lead to businesses becoming completely sustainable in the future.
Environmental Sustainability is the ability to maintain the things that are valued in the
physical environment (natural and biological environments).

Environmental sustainability could be defined as a condition of balance, resilience, and

interconnectedness that allows human society to satisfy its needs while neither exceeding the
capacity of its supporting ecosystems to continue to regenerate the services necessary to meet
those needs nor by our actions diminishing biological diversity. Environmental system seeks
to sustain the global life support system indefinitely. In the industrialized nation of
developing countries the problems related to the environment have become very critical and
their dependence on natural resources for the growth and development underline the need of
implement policy and plans for sustainable resource use. Due to increasing effect of
industrialization, urbanization, increasing population density and poor environment
management system in India the environmental problems have become alarming issues.

BENEFITS/ IMPORTANCE OF GREEN BANK

Basically Ethical (Green) banking avoids as much paper work as possible and relies
on online/electronic transactions for processing so that you get green credit cards and

green cutting
Creating awareness to business people about environmental and social responsibility
enabling them to do an environmental friendly business practice.

Green (Ethical) banks adopt and implement environmental standards for lending,
which is really a proactive idea that would enable eco-friendly business practices

which would benefit our future generations.

When you are awarded with a loan, the interest of that loan is comparatively less with
normal banks because ethical banks give more importance to environmental friendly
factors-ecological gain.
Green Banking as a concept is a proactive and smart way of thinking with a vision for
future sustainability of our only Spaceship Earth - as design science explorer Richard

Buckminster Fuller called our Earth.

J LEED-certified buildings to better loan rates for buying an energy-efficient house or
car. Its also a chance to put your money where your mouth is as an environmentalist,
advocates say, because green banks which tend to be community institutions take
customer personal deposits and in turn reinvest them in local sustainable businesses.

STEPS IN GREEN BANKING

From the empirical study, it is found that following are some of the steps that can be taken for
going green in banking:

Go Online banking
Online banking is the developing concept in young and corporate India.
Online banking helps in additional conservation of energy and natural resources.
Online Banking includes: a. Paying bills online, b. Remote deposit, c. Online fund
transfers and d. online statements. It creates savings from less paper, less energy, and

less expenditure of natural resources from banking activities. Customers can save
money be avoiding late payments of fees and save time by avoiding standing to

queues and paying the bill from home online.

Use Green Checking Accounts:Customers can check their accounts on ATM or special touch screens in the banks.
This can be called as green checking of account. Using a green checking account
helps the environment by utilizing more online banking services including online bill
payment, debit cards, and online statements. Banks should promote green checking by
giving some incentives to customers by giving higher rate of interests, waiver or
discount in fees etc.

Use Green Loans for Home Improvements:Ministry of Non-renewable Resource in association with some nationalized and
schedule banks undertook an initiative to go green by paying low interest loans to the
customers who would like to buy solar equipments. The rate of interest is as low as
4% p.a. Before you undertake a major home improvement project, study if the project
can be done in an eco-friendly manner and if you might qualify for a green loan from
a bank Green loaded perfect for energy-saving project around the house. The new
Green Home Loan Scheme from SBI, for instance, will support environmentally
friendly residential projects and offer various concessions. These loans will be
sanctioned for projects rated by the Indian Green Building Council (IGBC) and offer
several financial benefits a 5 present concession in margin, 0.25 presentconcessions

in interest rate and processing fee waiver.

Power Savings Equipments:Banks can directly contribute to controlling climate change and as an initial step they
intend to start a campaign to replace all fused International Monthly Refereed Journal
of Research In Management & Technology owned premises offices and residential.

Banks can also make a feasibility study to make rain water harvesting mandatory in
all the Banks owned premises. In December 2009 Bank inaugurated Mumbais first

solar-powered ATM as part of its Green Office Project campaign titled

Use Green Credit Cards:-

Some of the banks introduced Green Credit Card. The benefit of using a green credit card
is that banks will donate funds to an environment-friendly non-profit organization from
every rupee you spend on your credit card to a worthwhile cause of environment
protection.

Save Paper:Bank should purchase recycled paper products with the highest postconsumer waste
content possible. This includes monthly statements, brochures, ATM receipts, annual
reports, newsletters, copy paper, envelopes etc. Whenever available, vegetable-based
inks are used instead of less environmentally friendly oil-based inks.

Use of Solar and Wind Energy

Using solar and wind energy is one of the noble cause for going green. State Bank of
India (SBI) has become the first bank in the country to venture into generation of
green power by installing windmills for captive use. As part of its green banking

initiative, SBI has installed 10 windmills with an aggregate capacity of 15

Mobile Banking:
Mobile banking is tricky. On the one hand, it is great to have the ability to check
balances, transfer funds or pay bills from your phone. One the other hand, it saves
time and energy of the customers. It also helps in reducing use of energy and paper of
the bank. Most of the Indian banks introduced this paper-less facility.
Basically Green banking avoids as much paper work as possible and rely on online/
electronic transactions for processing so that we get green credit cards and green

mortgages. Less paperwork means less cutting of trees. It also involves creating
awareness to banking business people about environmental and social responsibility
enabling them to do an environmental friendly business practice.
Green Ethical banks adopt and implement environmental standards for lending, which
is really a proactive idea that would enable eco-friendly business practices which
would benefit our future generations.
When we are awarded with a loan, the interest of that loan is comparatively less with
normal banks because green banks give more importance to environmental friendly
factors - ecological gains.

CHAPTER-2
GREEN BANKING INITIATIVES IN THE PUBLIC SECTOR BANKS
Public Sector Banks (PSBs)
The public sector banks comprise of 20 nationalized banks, the state Banks of India and its 7
associates. Till 1955 they were used to be only private commercial bank- whether scheduled
or non-scheduled, licensed or unlicensed, foreign or India, they were all owned and
controlled by private entrepreneurs and shareholders. There were three phases of banks
nationalization. The first was in July 1955, when Government of India nationalized the
Imperial Bank of India to create the State Bank of India. It was a pioneering attempt in
introducing public sector banking in the country. In 1959, eight state banks of erstwhile
princely states were also nationalized to form the subsidiaries of the State Bank of India. But
now only seven of them are in existence, since the state banks of Bikaner and Jaipur were
merged. The Second phase of public sector banking came into existence when 14 major

commercial banks were nationalized on July, 1969. This was done with the view to serve the
needs of development of the economy in conformity with national priorities and objectives.
On April 15, 1980, six more private sector banks were nationalized. This led to the
dominance of public sector banks as nearly 90 percent of the banking activity in the country
was brought into the public sector. Most people generally rely on nationalized banks backed
by the government. The public sector banks were socially controlled and publicly owned. It
was done with the objective of giving a professional bent to bank management and provision
of adequate credit for agriculture and rural sector, small industries, exports and a new class of
entrepreneurs, it also aimed to professionalize bank management through adequate training of
bank staff. In retrospect, it appears that political motives dominated the decision about the
two nationalizations. Large scale branch expansion, mass recruitment of staff to take banking
to grass roots level, direct investments and credit programs, administered interest rate regime,
credit dispensation towards poverty alleviation programs through loan melas, etc. ruled the
roost in the Indian banking scene for over two decades. However, when face with tuff
competition from private sector and foreign banks, the public sector banks have reinvented
themselves, and have markedly improved their services and operational results.
State Bank of India (SBI)
SBI is the largest public sector bank in India in terms of market capitalization, profit, net
profit, revenue and assets. Till December 2013, SBI had maintained assets worth US$388
billion. The bank had 17,000 branches across the globe, which also includes 190 foreign
offices. This makes SBI, the largest banking and financial services company in India in terms
of asset. The bank offers various ranges of activities such as commercial banking, investment
banking, consumer banking, assets management, pension, credit card, insurance and
mortgages. The bank was ranked 29th in Forbes 2009 ranking. It is involved in community
service activity since 1973 and sponsors various social and welfare activities. State Bank has

been undertaking several environmentally and socially sustainable initiatives across the
country and is one of the few banks in the country to have enunciated a Green Banking
Policy, since 2007.
The Green Banking Initiatives taken by SBI
Certain major initiatives of SBI are:
a) Launched Green channel counter facilities in the year 2010 in some of its branches and
planning to extend it in more branches. An environmental friendly approach that helps to
make paperless banking up to some extent.
b) Collaboration with Suzlon Energy Ltd. to use wind power at the place of thermal power in
its business operations and currently using wind power in its most of offices located in
Gujarat, Tamil Nadu and Maharashtra.
c) Initiated the carbon disclosure projected in the financial sector in India, for the sake of
environmental concern and safety.
d) SBI and Export- Import Bank of India (EXIM Bank) both jointly provide a long term loan
(upto 14 years) to a Spain Based Companies Group- Solar Global SA and Aston Field
Renewable Resources for building solar plant in India. Most of the financial institutions avoid
giving long term loans to such projects because of their uncertainty and technological
changes
Punjab National Bank
Punjab National Bank is among one of the Indias oldest bank and was established on 19
May, 1894. Presently it's the second largest public sector bank by assets and third largest bank
(including each non-public & public sector banks) in India. The bank has thirty seven million
customers and 5937 domestic branches unfold across the country and about sixty two

thousand employees employed in the bank. Aside from the branches in India the bank also
encompasses a subsidiary in United Kingdom & branches in other Asian countries. It offers a
wide variety of financial services there for customers like consumer banking, corporate
banking, equity, mortgage, credit card, finance & insurance banking, wealth management etc.
Aside from financial activities the bank is also involved in various social initiatives such as
farmer empowerment, environment friendly initiatives, education & health initiatives for the
financially disadvantaged category. 8.2.1 The Green Banking Initiatives taken by Punjab
National Bank: Certain major initiatives of PNB are:
a) Internet banking started by PNB bank in the year of 2003- 04.
b) Debit cards facility started by PNB bank in the year of 2002-03.
c) Bank has started using energy efficient appliances & conducting the electricity auditing of
their offices. On the other side the bank is also accenting on green infrastructure.
d) A separate green audit sheet is being employed by the bank to access the impact of various
green banking initiatives implemented in the bank.
e) The bank has conjointly placed guidelines for supply the term loan to the business units
and commercial projects that are producing renewable energy and special guidelines has been
issued to curb the units that use environmental depleting substances.
f) In the year 2010-11 the bank has sanctioned nine commercial projects of wind energy
comes with total sum of Rs. 1850.81 million to push and develop the renewable supply of
energy. Source: Punjab National Bank, Corporate Social Responsibility Report 2010- 2011.
g) Sectioned nine commercial project of Wind energy in the year of 2010-11 with total sum of
1850.81 million.
Bank of Baroda (BOB)

Bank of Baroda is an Indian state owned (public sector) bank established in the year 1908 in
the princely state of Baroda. The Bank was nationalized in the year 1969 by the government
of India. It provides various ranges of banking products and financial services through its
branches such as corporate banking, investment banking, retail banking, asset management
etc. to the consumers. In year 2012 the bank was ranked 715 on Forbes Global 2000 list.
Currently the bank has a widespread network of 4172 branches and 2000 ATMs in India. The
bank also has its international presence with 100 branches/offices in 24 countries outside
India with its presence in major financial center such as New York, Dubai, and Hong Kong,
Singapore etc. The bank has taken various corporate social responsibility initiatives upheld
inclusive growth high on its agenda. The Green banking initiatives taken by Bank of Baroda
Certain major initiatives of BOB are:
a) Internet banking, mobile banking was added as alternate delivery channel to reduce
the use of paper in banking procedure.
b) As a part of green banking initiatives various changes were made such as backup
consolidation, server and desktop virtualization.
c) While financing the commercial projects the banks give a due weight age to green projects
such as windmills and solar power projects which helps in earning the carbon credit.
d) The bank insisted to implement water treatment plant and obtain NOC from central/ state
government pollution control board while lending the loan to manufacturing units which emit
toxic polluting substance.
e) Promotion of measure of pollution control and efforts for environmental protection &
conservation and cleaning of environment. Source: Bank of Baroda, Annual Report 20122013.
Canara Bank

Canara Bank is an Indian public sector bank and was established as Canara Hindu Permanent
Fund in 1906 and further renamed as Canara Bank in 1910 & nationalized in the year 1969.
The bank has a widespread network of 3564 branches and 4000 ATMs spread across the
country. The bank also has abroad offices in Dubai, Hong Kong, London, Moscow and Doha.
The bank was ranked 816 by Forbes Global 2000 list. Various financial services such as asset
management, commercial banking, investment banking, consumer banking, credit card and
mortgages are being provided by the bank. It also sponsors two regional rural banks in Kerala
and Karnataka. In the year 2003 the bank partnered with UNEP for solar project under
development project initiatives. Along with this bank is also involved in activities such as
rural development and environment friendly initiatives The Green Initiatives taken by Canara
Bank are:
a) Certain major initiatives of Canara Bank are:
b) The bank has implemented various green banking initiatives such as internet banking, telebanking & mobile banking. Solar power biometric ATMs has been implemented in a few
rural areas.
c) Now the bank is not extending the finance to the new units which are involved in
producing and consuming Ozone depleting substances. The bank has also stopped extending
the finance small/medium scale unit engaged in the manufacturing of Aerosols by using CFC.
d) The bank insisted to manufacturing units which emit toxic polluting substance to
implement water treatment plant and obtain NOC (No Objection Certificate) from central/
state government pollution control board while lending the loan.
e) The banking is providing loans for implementing solar lighting system, till the date the
bank has financed 50,000 such unit lending 5-8 lac Rs to each unit [19]. Source: Canara
Bank, Annual Report 2012-2013.

GREEN BANKING -A SWOC ANALYSIS

An analysis of strengths, weaknesses, opportunities, challenges (SWOC):
STRENGTHS
1. Green banking practice save time of customer as well as bank also.
2. It reduces the cost of bank operation and cost to the customer too.
3. Transition can be done any tome and at any place.
4. By financing in solar energy and wind energy program the bank is reducing carbon
footprint from the environment.
5. Quality customer practice password in green banking practice take time.
6. Lack of knowledge among the employee has been noticed.
7. There are some geographical barriers for the implementations of green banking
practices.
8. All banks are not coming equally for the practice of green banking.
9. Problem of security is always with green banking practices.
OPPORTUNITIES

1. People are becoming more computer literate so its easy to start green banking practice
and grape the customer toward the activities.
2. Most of the customer are using ATM card only. So it is a time to start all the initiatives
for green banking practices.
3. Mobile banking and internet banking is increasing day by day so it a time to spread
the green banking practice.
CHALLENGES
1.
2.
3.
4.
5.

Its a new concept and customer will take time to adopt this.
Green banking requires a technology which will highly costly.
It requires renewable and recycling technique which is costly.
Data protection is another challenge for the adoption of green banking.
Bank employees need training for all this practice.

MAJOR BENEFITS OF GREEN BANKING IDENTIFIED FROM IN-DEPTH

INTERVIEWS OF THE BANK EMPLOYEES
Some of the major benefits of green banking to the banks identified from the interviews of
the managers are as follows:
Reduces the Transaction Cost of the Bank: Green banking avoids paper work to the
optimum level and follows electronic media for various transactions, banks functioning and
customer management. Like providing e-statements to the customers, opening of the accounts
through online, making all the internal circulars within the banks online, etc. Thus, Paperless
banking reduces the transaction cost.
Competitive Edge: It helps the banks to get a competitive edge over their competitors
through innovation in their products and services.
Better Risk Management: It provides the benefit of better risk management to the banks.
Better risk management helps in building good image of the banks and by thus reducing the
reputational risk.

Reduces the Credit Risk: It helps easy recovery of the financed loan and thus reduces the
credit risk of the bank.
Cost Conscious Process: The transaction cost incurred to the bank through green banking
products like ATM, Mobile banking and online banking is very less compared to the cost
incurred through customer visiting the branch and performing the transaction.
Convenient Process: Green Banking provides convenience to the bank and also to the bank
customers. Due to various green banking initiatives like ATM, online banking, mobile
banking etc, the foot fall of the customer reduces to a larger extent in the branches of the
banks and this leads to reduced cost and effort in the management of the banks activity. These
banking activities also provide convenience to the consumers in terms of time management,
energy and fuel conservation as they need not visit the branch for every transaction.
Future of Green Banking: Indian economy is an emerging economy and there is a huge
potential of growth of Indian banks by adoption of innovative approach in their strategy
making process. There is a need of an approach towards paradigm shift by setting up of the
business model which would consider all the three aspect of triple bottom line approach i.e.
the people, the planet and the profit. The future of green banking seems to be very promising
in India as lots of green products and services are expected in the future. Green excellence
awards and recognitions, Green rating agencies, Green investment funds, Green insurance
and Green accounting and disclosure are some of the things that would be heard and seen in
operation in the near future. Proper green banking implementation will act as a check to the
polluting industries. Banks can act like a guideline towards the economic transformation and
create a platform that would create many opportunities for financing and investment policy
and contribute towards creation of a low carbon economy.

SMALL SCALE SECTOR IN INDIA AND GREEN BANKING: Industries irrespective of their size (large, medium or small) emit pollutants to the
environment in which we all inhabit. Though the large-scale industries are more capable of
degrading the environment, they have adequate financial resources to install pollution control
equipment or waste treatment plants to control Pollution. Moreover, these large-scale
industries are always in the eyes of the government or the pollution control board, these
industries strives hard to adhere to set emission standards. On the other hand, the small-scale
industries (SSIs), on account of their financial constraints may not be able to unable to install
the necessary equipment to meet the emission standards prescribed by the competent
authorities.
Also because of their small scale of operation, the SSIs escape from the eyes of the
concerned authorities. SSI constitute major portion of Indian industry. These industries
account for about 40 per cent of industrial production and 30% of total manufacturing
exports. Use of western technological systems in small scale industries produces enormous
gaseous, liquid and solid wastes. However, they may not be in a position to bear additional
expenditures on account of environment audit and pollution control equipments. Therefore,
banks need to apply different procedures to promote pollution controls like
(1) Environmental pollution status of SSI
(2)Environmental Clearance from the appropriate authorities and

(3) Steps undertaken or proposed for disposal of solid, liquid and gaseous wastes before
lending to SSI in India. This is where the banks and financial institutions can extend the
necessary financial support where pollution is on account of inadequate financial capabilities.
Further, SSI exports takes place through merchant exporters, and export houses. They may
also be in the form of export orders from large-scale enterprises for production of parts and
components for use for finished exportable goods. The exports from SSI sector have been
clocking excellent growth rates in recent years and this has been mostly fuelled by the
performance of garments, leather and gems and jeweller exported by this sector. One of the
key issues for increasing the Small and Medium Enterprises (SMEs) manufacturers role in
direct exporting are quality and conformity. Standards, as well as testing and certification
processes, are a massive hindrance to sales since products cannot be sold if they do not
comply with a range of safety, health and other regulations. SMEs have difficulty in adopting
expensive quality management systems, or certification procedures that sometimes have to be
repeated several times. The main external barriers are technical trade restrictions or non-tariff
barriers (likeStandardization, quality requirements, conformity assessment, packaging and
labelling, ecology requirements, etc.);
Different countries specify different testing and certification procedures. Assistance with
product development and innovation, including product design, packaging, quality and
environmental requirements and providing risk taking investment; obtaining of ISO 9000
series or ISO 14000 certificates. Therefore, a change in the environmental profile of the SSI
industries is called for. Therefore, the lending institutions need to restructure their credit and\
financial instruments/products to help SSIs to endorse quality and conformity with
environmental standards. Realizing the difficulties faced by SSIs in maintaining
environmental standards and its huge impact on economy and society, different state

governments provide schemes to encourage small Scale industries to adopt better

environmental management practices such as:
In order to improve the quality of raw materials and also finished products, the SSI units are
allowed for testing facilities for products / raw materials and also to obtain the BIS Certificate
etc.
Grants and subsidies are given to an extent of 50% of the total for obtaining the Series in
many states. However, SSIs are small but large in number. And most of the industries are in
the unorganized sector. Therefore government and financial institutions must come forward
to help these units financially to adopt expensive pollution control technologies developed in
the other developed countries. However, the most practical solution to these large number of
SSI enterprises would be developing low cost pollution abatement technologies, adopt
mechanism from pollution control to pollution prevention activities and international
cooperation. Government can further provide tax incentives and other financial help to SSIs
to meet requirements.
CHAPTER-3
GREEN BANKING IN SBI

Mobile banking and mobile payments

In many parts of the world, mobile banking provides a solution to the problem of bringing
financial services to the rural poor. Countries like India, China and Bangladesh have put more
resources into developing mobile infrastructure than improving landlines. The environmental
benefit of a push towards more mobile banking is enormous, but there is also a societal
benefit. For instance, in India banking initiatives launched by State Bank of India (SBI) have
enabled millions of Indians to use their mobile phones to bank in areas where there are no

branch offices. The unbanked or under banked living in rural areas now have the ability to
tap into many of the same resources as people living in metropolitan areas. Even more
important, mobile banking is proving to be one answer in the fight against poverty.
It would appear that the reliance on mobile devices will only increase in these countries and
that mobile banking will continue to spread. In a strange paradox, a country with some of the
most advanced technology in the world, the United States, has been slower to adopt mobile
banking. That is starting to change this year with the popularity of the phone and paid, but the
U.S. still lags Asia and Europe. Beyond using a smart phone to check bank account balances
and transfer money, a whole new revolution has started in the payments world. Mobile
technology has now advanced far enough that mobile payments, once a dream of the past, is
now a reality. The market to process payments by phones is about to see a huge amount of
competition between all the big players like PayPal, Google, Apple, credit companies and
major banks. Even startups like, square, are capturing the attention of the public and investors
as more innovative payments solutions come to the market almost daily.
For consumers, using mobile payments is about convenience and the ability to pay-it-green. It
goes with saying that paying for our coffee, newspaper or taxi ride by swiping our phone
makes life easier. It isnt that far off that smart phones could actually replacing you wallet or
purse that is stuffed with credit and debit cards! Encryption and security actually make it a
safe payment alternative.Mobile payments are also a green solution that helps the
environment. Every time we pay a will without using paper, mail and human processing, we
save natural resources.

PERSONAL BANKING SERVICE

The single most important benefit to customers is time as there will be no queue and
an opportunity to undertake paperless banking,'' the SBI official said. From the bank's
perspective, this would save processing time, stationery and also infrastructure. While

an ATM machines now costs about Rest 4 lakh, the cost of a TPD is only Rest 7,000.
The bonus, apparently, will be greater customer satisfaction and image of a techdriven bank. As SBI has 14,437 branches, the facility would soon be extended too
many more branches.
Our target is to facilitate at least 10 per cent of transactions in branch through green channel
counters,''

CHAPTER-4
MEASURE TAKEN BY SBI FOR GREEN BANKING
STATE BANK OF INDIA BRINGS BANKING TO RURAL AREAS
More great news this week from State Bank of India. The bank, long-entrenched as a green
banking leader, is bringing more banking services to the rural poor in India. Details from the
State Bank of India press release: State Bank of India on Saturday said it will open over 5,000
green channel counters (GCCs) this year. Speaking on the occasion of the 56th anniversary of
the nations largest lender at its headquarters,
GREEN CHANNEL COUNTER SCHEME BY STATE BANK OF INDIA
State Bank of India has decided to expand its scheme green channel counter in which no
paperwork is needed to do the banking. No paper will be used to deposit withdrawal or even
transfer the money from one account to other. Only one need is to an ATM card or debit card
attached to the account with which one can do all the transaction without the paper and the
pen.State Bank of India has started 'Green Channel Counter' on 1st July, 2010, at 57 Pilot
branches across the country, as an innovative step towards paperless 'Green Banking' for

deposit, withdrawal and remittance transactions. Based on the Customers favorable response,
this initiative has now been rolled out to more number of branches (Complete List given
below).
The facility would give customers ease and comfort in transacting their business at branches.
The customer need not fill up any pay-in slips or draw cheese for depositing or withdrawing
money from their accounts, saving paper, and thereby contributing to the concept of 'Green
Banking'.
This novel facility would be a game changing move in the industry by reducing process time,
as duplication in writing feeding account details and transaction details by the customer as
well as the person behind the counter is avoided by simply capturing these details by swiping
the SBI Shopping cum ATM card (State Bank Shopping Card) on a device available at the
Single Window Operator's (SWO) counter. At the Green Channel Counter, there is a Point of
Sale Machine (POS), on which the customer swipes his card. He is then asked by the machine
to selectthe type of transaction, viz.
(1) Cash Deposit,
(2) Cash Withdrawal
(3) Funds Transfer.
Once the customer selects the type of transaction by entering the option, the message 'Enter
the Amount' is displayed. At present the maximum amount is Rest 40,000/-. The customer is
asked to confirm the input amount followed by a message "Please Enter the PIN". When the
PIN is entered by the customer, the transaction gets transferred to the terminal of SWO who
after entering the denomination of the cash to be paid/received pays/receives cash and the
transaction gets completed. The customer will be provided with a machine generated printed
receipt with previous balance, amount of transaction and closing balance. Odd amount (in

round rupees) transactions are possible. While withdrawing, the customer can have
denomination of currency of his / her choice, subject to its availability at the Branch.
The Green Channel Counter is also an endeavor to offer ease of transactions to senior
citizens, especially a large number of pension account holders who still prefer branch
banking. It is the privilege of the oldest Bank in the country to take care of its elder citizens
and guide them to the use of plastic cards. The facility would be extended to a larger number
of branches with added facilities in due course.
Fees/charges FREE
* There will not be any additional charges other than the nominal charges for remittances
from Non-home branches currently being charges
How to Apply SBI Green Remit Card.

Then you need to fill all the fields.

One id proof Xerox (Who is going to deposit the money that person ID Proof) .
Once fill the entire field in the form then we need to submit the form in SBI Bank regarding
counter. Then they will give you the Green Remit card in few Mins. After you can directly
go and deposit the amount using that green remit car
Takes some majorsteps to gradually adhere to the equator principles-guidelines that use
environment-sensitiveparameters, apart from financial, to fund project.
GREEN CREDIT CARD INFORMATION

Find helpful credit card info to help make smart decisions with your money.
Choosing the right credit card can be a daunting task. Deciding between frequent flier miles,
cash back rewards and discounts from your favorite stores can be a tough choice. Nationwide
Bank can help make your decision easier with our helpful credit card tips and information.
We offer an array of easy-to-understand credit card info on establishing credit, advantages of
using credit cards and other frequently asked questions. We want to help you make an
informed decision with your finances before applying for a bank credit cardof your own.

Find credit card tips you need to knowwhether youre a student learning about and building
your credit for the first time, an adult professional trying to strengthen your existing credit
score or a seasoned financial "expert" looking for a credit card to fit your spending habits,
were here to help you make the best decision for your lifestyle with useful credit card
information including:

Credit card benefits

Nationwide Bank Credit Card info
Credit card benefits that meet your lifestyle

At Nationwide, our goal is to arm you with the credit card information you need to make the
right choices for your financial situation. The following credit card benefits are available with
a Nationwide Bank Visa Credit Card.
Rewards Some credit cards offer airline miles, some offer points. At Nationwide, you get
the reward you really want cash. The Nationwide Bank Visa Credit Card offers
immediate1 1% cash-back rewards on all purchases each month.
Interest-free offers
Security:--Set your mind at ease with youll also get a promotional 0% financing on all auto
repairs for twelve billing cycles from the date of the purchase. Get the necessary funds you
need at a price you can afford and enjoy the benefit of paying no interest when you use your
card for car maintenance and repairs.
At Nationwide, we also offer new customers a 0% introductory APR on credit card purchases
and balance transfers for six billing cycles from the account opening. We also offer detailed
credit card information on the terms and conditions of your card so that youre never left
guessing.

The security that comes from knowing there is 24-hour customer service available for your
convenience. Whether you need to update your credit card info, believe that your card has
been the target of credit fraud or become aware of charges that shouldnt be there, 24-hour
online account management and customer service representatives are ready to take your call.

Convenience :- Theres no need to carry around cash in your wallet. A credit card benefits
you by providing the convenience of simply sliding your card for purchases on the go. When
using cash is not the ideal option, utilize your credit card for immediate access to the
purchases that unexpectedly arise, or the daily expenses that keep life running smoothly.
Balance Transfers :-Save money and pay less on what you borrow when you transfer your
balances from higher-APR credit cards to your Nationwide Bank Visa Credit Card. Youll
also enjoy a 0% introductory APR for six billing cycles for your balance transfers.
Online Banking :-Take advantage of the convenience of online banking that offers the
flexibility of 24-hour banking and the ability to make payments and access credit card
information from the comforts of your homeaccess. We offer numerous payment methods
and a variety of different ways to make your payment, so you are always able to access your
funds and make timely payments that fit your busy lifestyle.
No Annual Fee :- Some credit card companies charge customers to use their credit card.
Nationwide offers a no annual fee credit card, because we believe you shouldnt have to pay
to utilize our services.We believe that by understanding the credit card benefits, you will be
able to find the easiest way to enjoy credit card rewards and pay less on what you borrow.
BEST GREEN CREDIT CARD DEALS

Credit card rates and deals from green banks are available for consumers. Instead of using a
credit card issued from your local bank that does not support any green initiatives or a large
bank with hundreds of energy-consuming branches, find a card from an online bank. Not only
can your spending be more eco-friendly, you can also earn better cash bonuses, rewards and
airlines miles from credit cards issued from green banks. Credit card rates are also lower for
cards issued from green banks on intro-rate offers, balance transfers and normal card usage
according to data reported to Green Bank Report.

The ATM Card

Although the first card-accepting ATM came about in 1969, the first ATM card didn't come
about until 1972. In the years between 1969 through 1972, you had to have a credit card to
utilize an ATM. City National Bank of Cleveland issued the first ATM cards that allowed you
to debit money directly from your bank account. You could only withdraw money from ATMs
with these cards. You could not use them to make purchases.
The ATM/Debit Card
The terms "ATM card" and "debit card" are largely interchangeable. The reason you could not
make a purchase with your City National Bank debit card wasn't that the card wouldn't allow
it. The point-of-sale, or POS, technology and infrastructure had yet to be developed. In 1976,
grocery chains in Massachusetts, Angelo's and Star market, installed the first known POS
systems. Large chain gas stations began testing POS systems in the early 1980s.
The Expansion of Card Usage
Although the usage of the debit card at the POS has not surpassed the credit card as the
preferred card medium of exchange, it has made tremendous strides in its commonality. A

paper written by Robert M. Hunt of the Federal Reserve of Philadelphia notes that from 1980
to 2000, consumer purchases via debit card rose from zero percent to 12 percent, and
purchases made via check fell from 86 percent to 50 percent.

CHAPTER-5
GREEN BANKING TIPS TO SAVE THE PLANET
Green is good for you and the planet. And banks big and small are increasingly offering green
loans, sustainable certificates of deposit and paperless checking rewards that dish out
discounts and fee breaks. The result more green in your pocket.
Green banking isn't just for tree its becoming main stream as a way to make, save and lend
money. "Customers want to make a difference in the environment," says Mike Jones, a
spokesman for Citizens Bank in Providence,Green banks such as New Resource Bank in San
Francisco, Green Bank in Houston and Green Choice Bank in Chicago are springing up to
offer a full menu of innovative green banking products, such as solar CDs and Energy Star
mortgages."We're an alternative to the big, money center banks," says Vincent Sicilia no,
CEO of New Resource Bank.But don't get blinded by green fever. Some green banking
products, such as mortgages and home lines of credit, are complex and require piles of
paperwork. And others, like sustainable CDs, invest in fledgling ventures that could go bust.
It pays to read the fine print -- but there are certainly opportunities out there that are good for
the planet and your pocketbook. Here are five green banking trends to jump on now.

Towards Green Banking- Socially Responsible Banking in India

The paper's purpose is to highlight the green banking initiatives being taken by the Indian
Banking Industry. Green banking involves promoting environmental and social
responsibilityby providing banking services in a new way befitting the new age of banking.
Green banking is also called as Ethical banking that starts with the aim of protecting the
environment. Ethical banks consider all the factors before considering a loan - whether the
project is environment friendly or not. A company is awarded loan only when all the
environment safety standards are followed. India is growing at a very fast rate and this
development is mainly supported by the industrial sector. However the country faces a major
challenge of controlling the impact of their business on the environment. For these industries,
the banking sector is the major source of finance. Hence the role of the banks in controlling
the environmental damage is extremely important. Banks are beginning to recognize that they
have a social responsibility to fulfill as they emerge from the shadow of traditional banking.
As per relatively indirect nature of their environmental and social impacts, banks need to
examine the effects of their lending and investment decisions. Incorporating environmental
and social criteria into business decision making can reduce the adverse impacts of operating
activities Financial institutions can do a lot to assist efforts for corporate social responsibility
and achieve sustainability.
GREEN BANKING POLICY
Objectives of the policy
The main objective of the policy will be to contribute to the national/global interest through
establishing an environment friendly banking business system which may be achieved
through proper utilization of human & physical resources and encouraging channeling of
fund to projects/businesses those expose no or very little risk to the environment/climate.

The objectives of the policy will be:

i) To promote sustainable environment friendly initiatives undertaking through
Adoption of a set of principles and strict adherence to those principles.
ii) To contribute to the national/global interest through avoidance of financing in specific
industry project process business, being harmful or tend to
Be causing harm to the environment even if they are financially viable;
iii) To create an atmosphere for the bank and/or its both existing and potential clients to work
within an ideal business environment through innovative marketing of innovative banking
products;
iv) To encourage the employees, the existing and potential clients and other
Stakeholders to develop, practice & promote for developing & using Environment friendly
Green Technology/products/production process;
v) To develop the attitude among the employees to motivate, encourage the
Stakeholders through initialization of appropriate in-house environmental risk
Management system through introduction of appropriate technology;
vi) To sponsor awareness programs for environment friendly products/technology through
practice of Corporate Social Responsibilities (CSR)
Covenants of the Policy:
The perception towards environmental norms and standards is changing over time. Adhering
to environmental norms and standards were considered costly and as a bottleneck to
development.

However, if the economic benefits of these in terms of health care, productivity and insurance
were considered the benefit would have been much higher than the cost. If all the impacts of
environmental degradation are considered and costs are measured, then economic benefits
which these protection measures fetch would have been huge.
As formulating & adopting Green Banking policy will be ultimately befitting for the
climate/environment, formulation of effective policy through designing effective strategy
needs to be addressed quickly & properly. Promises of potential cost savings from no cost or
low-cost resource efficiency or waste prevention measures need to be clearly demonstrated
before they will be more widely adopted. This is the high time for the bank to formulate this
policy for confirming its stance towards safety of environment.
Policy formulation and governance
A High-Powered Committee comprising of the director from the Board of the Directors of the
bank shall review environmental policies, strategies and programs of the bank.
The bank allocates considerable fund in their annual budget for implementing & practicing
green banking.

The bank has established a separate Green Banking Policy Implementation Unit which has
been assigned responsibility for designing, evaluating and administering related Green
Banking issues of the bank. A senior executive has been assigned with the responsibility of
heading the unit and a permanent position playing the role of coordinator of the unit shall be
created. The unit will report to the high powered committee time to time. This policy ensures
that services to be provided by all of the credit delivery points of the bank shall comply
Green Banking Policy and activities to be designed within the Green

Banking Policy implementation strategy.

The stakeholders of the bank are encouraged to reduce their consumption &
Wastage of physical resources like raw materials, water and energy to make sure
That the best value is received from the resources they use through formulating
Effective strategies with the boundaries of the policy.

Introducing Green Finance:

Financing in ecofriendly and environmentally sustainable business activities and energy
efficient industries shall be extended through preference by all the credit delivery points.
Environmental infrastructures such as renewable energy project clean water supply project,
waste water treatment plant, solid and hazardous waste disposal plant bio-gas plant biofertilizer plant are encouraged those will be financed by the bank. Viability of environmental
infrastructures for financing shall be assessed in line with the environmental issues i.e. how
the purpose of the project business & to what extent this is rewarding to the environment.
Most viable project business sector shall be prioritized for financing to position the bank
gradually as a Carbon Neutral Bank first & then as a Climate Positive Bank.
Creation of Climate Risk Fund
The

bank

addresses

environmental

issues

&

assesses

environmental

risks

of

projects/businesses of different sectors in different areas those are financed by the bank and
create climate risk fund. A comprehensive risk exposure matrix shall be developed for
assessing environmental risks and reported to different credit committees of the bank by the
branches in the risk exposure matrix. The fund to be allocated created for Green Banking
may be used as a part of CSR activities at the time of emergency.

Introducing Green Marketing

Green Marketing incorporates a broad range of activities, including products/services design,
engineering, modification, new product innovation, changes to the production process &
packaging encouraging the potential clients for designing Green Project as well as modifying
advertising. Besides, bank effectively uses green marketing channels more for widening
target markets of usual products. Bank takes steps that will help building awareness among
common people for promoting products/services which cause
Least harm to the environment. R&D Division shall plan for developing & marketing Green
banking products for offer.
Use of appropriate technologies
The bank addresses the use of appropriate technologies through installation of energy
efficient machinery/equipments that will upgrade & expand its ATM services and introduce
SMS services & e-mail to its customers for providing better and paperless services to its
customers.
Designing and introducing innovative products
The bank shall introduce environment friendly innovative green products addressing thecore
national/global environmental challenges. Research & Development (R&D)
Division of the bank shall formulate plan for developing & marketing Green Banking
Products to offer for public
Supporting employee training, Consumer Awareness and Green Event:
Exclusive training programs or specialized/befitting classes in foundation or other credit
related courses for incorporating Green Banking Policy Guidelines as a part of awareness

building among the employees of the Bank are arranged in consultation with GBPIU by the
Training Cell. Training programs on environmental and social risk and employee awareness
development should have to be implemented by the training cell continuous process
GREEN BANKING STRATEGY:
Green banking strategies Conclusion It is important that Indian banks recognize their
environmental and social responsibilities if they desire to enter global markets since as far as
green banking is concerned, Indian banks are far behind their counterparts from developed
countries. Indias growth story and commitment to cut its carbon intensity by 20-25% from
2005 levels by 2020 provides tremendous opportunities for Indian banks from funding
sustainable projects to offering innovative products and services in the areas of green
banking. For effective green banking, the RBI and the Indian government should pay a
proactive role and formulate green policy guidelines and financial incentives. Indian banks
should adopt green banking as a business model without much further delay.
Pricing Strategy:
The bank shall formulate its pricing strategy for its products in line with the global green
banking issues. The clients complying green policy of the bank and adopting appropriate
technology for addressing ERM issues from their part shall be eligible for receiving facilities
at a reduced rate than the usual rate of the bank
Green strategic planning:
The bank shall determine green targets to be attained through specific planning. It shall
determine a set of achievable targets and strategies, and disclose these in their annual reports
and web sites for green financing and in-house environment management as well. ICT
Division shall time to time up-date the Website of the bank with new and easy navigation

slots or publish a separate webpage for the purpose of marketing/advertising green banking
products of the bank.
Setting up Green Branches:
The bank shall set up Green Branches which will be featured by the provision of using
natural light, renewable energy and surface & recycled water to the highest possible extent
and implementing energy efficient lighting & cross ventilation air movement system and
replacing gradually the less energy efficient machinery/equipments by higher energy
efficient machinery/equipments. The branches shall be decorated in such a manner that will
promote the activities of Environmental/Green Banking issues tothe people.
SBI Green Home Loan
Purpose SBI Green housing loan is for customer who are buying properties in green project
which reduce carbon emission and promote renewable energy Special feature 5% discount on
the margin money 0.25% concession on interest rate and waiver of processing fees for
customer going in for the green projectInterest rate for first year is 8% and for 1st and 2nd
year is 8.2% pa after the 3 year the customer can choose the either fixed or floating based on
prevailing.
Maximum in 25 year Quantum of loan- minimum loan of Rs75lack reporting in Standard
Format with External verificationBank has to publish independent Green Annual Report
followinginternationally accepted format like Global Reporting Initiative (GRI)targeting their
stakeholders.Bank shall report its initiatives/activities under the said program to
theDepartment of off-site supervision of Bangladesh Bank on quarterly basis as instructed by
Bangladesh Bank within the next 15 days of the respective Quarter end.
SBI BANK COVER THE FOLLOWING RISK

Problems & Risks Problems Problem fall under two categories; the first concerns depositors,
and the second concerns green banks. In the first category lies the problem of really knowing
how green banks measure or qualify their ethical policies. Another issue is that of codes.
In the second category green banks face obstacles such as losing business and consumer
support to conventional banks, and having to regulate above and beyond the present
international legal systems. Risks three types of risk a financial institution could be exposed
to arising from the social and environmental issues of their clients: credit risk, liability
risk and reputational risk.

DATA ANALYSIS AND INTERPRETATION

A. GREEN BANKING IN THE CUSTOMERS PERSPECTIVE
1. Awareness about Green banking
When the respondents were asked about green banking 67% of the people were aware of
what green banking was and the remaining 33% were not aware what green banking was all
about.

GRAPH:

Chart Title

AWARENESS OF GREEN
BANKING

33%

YES

67%

NO

2. Sources from which Green Banking awareness came about:-

Those respondents who have told that they know about green banking, the main source from
which they have heard of it is from the internet (online sources- 61%) and the rest from TV
programmes, newspapers and the like.

GRAPH:

Chart Title

21% 11%7%

SOURCESFROM WHICH
GREEN BANKING
COMES ABOUT FROM

NEWSPAPER

TV PROGRAMME

ONLINE

OTHER

61%

3. Green Banking Promotion by Banks

When asked about the green banking promotion done by banks, 29% of the people confirmed
their bank/bank branches were giving them enough information about various green banking
initiatives in a direct or indirect manner and the remaining 71% of the respondents told that
they werent getting any information about green banking from their bank/ bank branches.
GRAPH:

Chart Title

29%

GREEN BANKING
PROMOTION BY BANKS
YES
NO

71%

4. Ways of Promotion of Green Banking Initiatives by Banks

When the respondents were asked in what ways the banks promoted green banking services
that they were aware of, a majority of the respondents said that they were aware of the green
banking services through cell phone messages such a pull and push SMS and the
like. A very few percentage of people are aware of the green banking services provided by
their banks through pamphlets and door to door information and the rest through various
means.
GRAPH:

Chart Title

29%
6%

18%

47%

WAYS OF
PROMOTION OF
GREEN BANKING
INTIATIVE

PAMPHLET

CALL PHONE
,MESSAGE

DOOR TO DOOR
INFORMATION

OTHER

B. GREEN BANKING IN THE BANKS PERSPECTIVE

A survey was conducted among the local branches of banks in Udupi and Manipal region and
they were asked about the various green banking initiatives taken up by them, how it has
impacted their branches, what are the products they recycle usually.
1. Some of the green banking initiatives taken up by the banks were:
a. Net Banking
b. Mobile Banking

c. Account statements sent through email to the customers for every debit or credit
transaction taking place.
d. Miss Call Banking for queries and advisory services
e. Promotion of Internet Banking, ATM Card Business, E- Statements, Mobile Banking and
use of the Mobile Banking ApFor some banks, they felt this was a newly coined concept
where the serious initiative is yet to be launched and would need to some for it to be fully
operational.
2. Impact of Green Banking in branches
The following responses were obtained:
a. Less paperwork
b. increased efficiency
c. low cost
d. Increase in service and social responsibility of the bank is fulfilled.
e. Walk- ins are less
f. Increase in the number of transactions.
3. The banks were also asked on how many customers approximately were using internet
banking and mobile banking services. Most of the banks came up with a response that atleast
60% to 70% of the customers were using the internet banking services and 80% to 95% of the
customers were using mobile banking services.

4. When the banks were asked whether they are recycling their products they use, 80% of the
any bank branches told that they werent recycling any products they use and only 20% of
them recycled their products such as papers, toners and catridges.
5. Operational Costs in smartphones.
GRAPH :

Chart Title
REDUCTION IN
OPERATIONAL COST

33%
50%

AGREE
STRONGLY AGREE
STRONGLY DISAGREE

17%

From the above pie chart, we can infer that 50% of the banks agree that green banking helps
them to reduce their operational costs mainly through less paperwork and sending the
statements online. 33% of the banks branches strongly disagree the above fact because they
feel that the cost of service has gone up.
6. Promotion of Banking services with the help of Green banking:
GRAPH:

Chart Title
promotion of
banking services

14%
14%

rarely
often

72%

always

Most of the banks i.e 72% of the bank branches have replied that Green Banking has always
helped them to promote the banking services they offer to the public. This was because
delivery of the banking services has always been easy with the help of internet which has
enabled the banks to respond to the customer queries at the earliest which in turn has helped
them to market their services and products. 14% of the bank branches have felt that green
banking has rarely helped them to promote their banking services.

CONCLUSION
The green banking is very fast to growth in the world it is go for smart way of today modern
world and its affect the world economy. So it can easy to available in any services of green
banking as well as any other green bank . They provide lots of services.
In a rapidly changing market economy where globalization of markets has intensified the
competition, the industries and firms are too stringent public policies, severe law suits or
consumer. This would affect the banks and financial institutions to recover their return from
investment. Thus, the banks should play a pro-active role to take environmental and
Ecological aspects as part of their lending principle which would force industries to go for
Mandated investment for environmental management, use of appropriate technologies and
management systems.
Green banking if implemented sincerely will act as an effective extant deterrent for the
polluting industries that give a pass by to the other institutional regulatory mechanisms. There
has not been much initiative in this regard by the banks and other financial institutions in
India though they play an active role in Indias emerging economy.

The banking and financial sector should be made to work for sustainable development.
As far as green banking in concerned, Indias banks and financial institutions are running
behind time. None of our banks or financial institutions haves adopt even for the sake of
records. None of them are signatory to the UNEP Financial Initiative statement. It is time
now that India takes some major steps to gradually adhere to the equator principlesguidelines that use environment-sensitive Parameters, apart from financial, to fund projects.

RECOMMENDATION

1. Construct a website for bringing awareness about green banking and spread the news.

2. Educate through the banks intranet and Public website.

3. Conduct and Participate in events.
4. Set up outlets to promote green business.
5. Communicate through the Press.
6. Disseminate information through leaflets.
7. Social responsibility services done by banks.
8. Carbon footprint reduction by energy consciousness.
9. Carbon footprint reduction by mass transportation.
10. Impart education through e- learning programmes and in schools and colleges.
11. Making it a part of the annual environmental report.

WEBLIOGRAPHY

www.sbigreen bank.com-12605523.html
www.green banking .com
http:// www.geen bankreport.com/eco friendly
www.authorstream.com/green banking
En.wikipedia.org/wiki/green-bank
En.wikipedia.org/wiki/prnewawire.com
Www, bankbazar.com