A Study of the Impact of Green Banking Practices on Bank’s Environmental Performance: An Indian Perspective

Abstract

Global climate change has become an evident threat to the economy and is affecting the day-to-day operations of humans in every way alike. This issue of climate change has also impacted the traditional banking system. It has made way for Green Banking (GB), which ensures the balance of sustainability and growth in the final sector. The study's main aim is to quantify the effect that the various practices that relate to GB are having on the environmental performance of banks while also understanding the mediating impact of green finance. This study uses a survey-based approach to sample the data of 274 bank employees in India's Northern Capital Region (NCR). To quantify the relation between the various variables and highlight the statistical significance of the relationship, the study uses structural equation modelling (SEM) to quantify the measurement and the structural model. The study's findings reveal that the various factors of operations, consumer focus, employee training, and policy practices in the aspect of GB affect the environmental performance of a bank in some manner or another. It discusses the empirical and policy implications for future research directions in the concerned area.