Environmental management through green banking: A study on green banking practices with special reference to SBI

Abstract

The world faces a great challenge of environmental degradation during the process of economic development. Banking sector as responsible stakeholders in this regards can do better contribution towards the environment by adopting various green banking practices. Green banking practices mean promoting environment-friendly practices and reducing carbon footprint from day to day banking activities. Green banks or environmentally responsible banks do not only improve their own standards but also affect socially responsible behaviour of other business. This concept of “Green Banking” will be mutually beneficial to the banks, industries and the economy. Green banking will not also ensure the greening of the industries but also facilitate in improving the asset quality of the banks in future. Banking sector plays a crucial role in promoting environmentally sustainable and socially responsible investment. Banks in India especially the largest commercial bank State Bank of India has developed several green banking initiatives. Recently the bank has introduced various paperless banking practices for their customers. Adopting these practices the customers can contribute a lot towards the environment. This paper aims to highlight the green banking initiatives undertaken by SBI and attempt has been made to discuss the environmental and other benefits of these practices.