Factors Affecting Adoption of Green Banking Practices in Indian Banking Sector and its Impact on Environment

Abstract

Green Banking, as defined by Institute for Development and Research Technology (IBRDT, 2014), is “an umbrella term referring to practices and guidelines that make banks sustainable in economic, environment, 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”. The concern for environmental sustainability by the banks has given rise to concept of Green Banking. This concept mutually beneficial to the banks, industries and the economy. It helps promoting environmental friendly practices and reducing carbon footprints from banking activities. Hence the present study is such an attempt to identify the factors affecting intention of banks to adopt green banking practices from the sample size of 100 Customers of City Union Bank in Chennai City and also to analyse the impact on environment of adoption of green banking practices in Indian Banking Sector.