Adoption of Green Banking practices in Indian Banks: A Public-Private Sector Perspective

Abstract

The idea of "green banking" emerged as a result of financial institutions around the world being forced to include sustainability in their operations due to the urgency of climate action and the growing environmental concerns. This study examines the adoption and execution of green banking programs in selected public and private sector banks in India, with an emphasis on strategic approaches, regulatory effects, and institutional commitments to environmental sustainability. The study compares the initiatives of public sector banks (State Bank of India (SBI) and Bank of Baroda (BOB)) and private sector banks (HDFC Bank and Axis Bank) using a descriptive and comparative technique based on secondary data from official reports and policy documents. The findings show that public sector banks are primarily motivated by institutional policies and national climate goals, as evidenced by SBI's early wind energy projects and the BOB's green deposit schemes. On the other hand, private banks demonstrate innovation-driven tactics that prioritize stakeholder-centric CSR initiatives, sustainable financial products, and digital transformation. The study also emphasizes how important it is for the Reserve Bank of India (RBI) to support green banking through policy measures, even though a major obstacle is still the lack of a defined regulatory framework. This study emphasizes the necessity of harmonized regulatory systems, intersectoral collaboration, and increased stakeholder awareness in mainstreaming green banking practices to achieve India's sustainable development goals.