Thesis Paper

on
Green Banking Practices in Bangladesh: A study on
commercial Banks

Supervised by
Imran Khan
Lecturer
Department of Business Administration
Z. H. Sikder University of Science & Technology

Submitted by
Sinthia Akbar Nesa
ID: 160217015
Batch: 7th
Program: MBA
Major: Accounting & Information Systems
Department of Business Administration
Z. H. Sikder University of Science & Technology

Z. H. Sikder University of Science & Technology

Date of Submission: 15th January, 2018

i
Green Banking Practices in Bangladesh: A study on
commercial Banks

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 Letter of Transmittal

15th January 2018

Imran Khan
Lecturer
Department of Business Administration
Z. H. Sikder University of Science & Technology

Subject: Submission of Thesis Paper.

Dear Sir,
It is, indeed, an honor to deliver my thesis on Green Banking Practices in Bangladesh: A study
on Commercial Banks as a prerequisite for the completion of my MBA program. This paper is
based on secondary data available as well as the information generated from my investigation. I
have invested the best effort I can to prepare this paper and eventually come up with a worthwhile
conclusion.

Sincerely Yours,

__________________________
Sinthia Akbar Nesa
ID: 160217015
Batch: 7th
Progam: MBA
Major in Accounting & Information Systems
Department of Business Administration
Z. H. Sikder University of Science & Technology

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 Student Declaration

I am Sinthia Akbar Nesa, ID: 160217015, a student of Business Administration, Z. H. Sikder

University of Science & Technology, hereby declare that the presented of Thesis titled Green
Banking Practices in Bangladesh: A study on Commercial Banks is an origin. This work is
done by me under the supervision of Imran Khan, Lecturer of Department of Business Administration
of Z. H. Sikder University of Science & Technology.

No part of this has been submitted by me for any degree, title or recognition before.

…………………………
Sinthia Akbar Nesa
ID: 160217015
Major in Accounting & Information Systems
Department of Business Administration
Z. H. Sikder University of Science & Technology

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 Supervisor’s Approval

I hereby declare that the concerned titled Green Banking Practices in Bangladesh: A study on
Commercial Banks is originated by Sinthia Akbar Nesa, ID: 160217015, Student of MBA
program, Z.H Sikder University of Science & Technology, completed her thesis under my
supervision and submitted for the degree of Masters of Business Administration (MBA).

___________________________

Imran Khan
Lecturer
Department of Business Administration
Z. H. Sikder University of Science & Technology

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 Acknowledgement

First and foremost, I would be grateful to the Almighty Allah as I have successfully completed
this thesis within due time and for all the incidences I had to undergo while preparing this.

Then I would like to take the opportunity to express my gratitude to my honorable faculty
Imran Khan thesis supervisor, Department Business Administration, Z. H. Sikder University
of Science & Technology. Without her continuous support and suggestion, this would not come
into light.

Second, during this period I have gone through all the teachers of Accounting of our University.

I am grateful to my Allah and my Parents, who supported me a lot in every aspect of preparing
the thesis. This paper suffers from many short comings although I have exerted my best effort
while preparing the thesis. I seek excuse for the errors that might have occurred in spite of the
best of my effort.

Besides I am also grateful to the authors, researchers, and article writers who Books is, , and
Journals have helped me to prepare my Thesis successfully.

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 Abstract Summary

Green banking is not just a corporate social responsibility activity; it is all about going beyond
to keep the world livable without any significant damage. Green banking that considers all the
social and environmental factors is also called ethical banking. The main objective of green
Banking is to ensure the use of organizational resources in favor of the environment and
society. Green banking as a concept is proactive and smart way of thinking with a vision for
future sustainability of our only Spaceship earth. Bangladesh Bank is the first central bank in
the world that has taken real initiatives to facilitate the way of Green Banking practices. With
some specific guidelines and legal frameworks, the central bank of Bangladesh has been urging
all the commercial banks in Bangladesh to develop their own Green Banking Policies. Green
Banking is a new part of banking activities of banking sectors. Today when people of
Bangladesh are much more concerned about climate change then banking sector has shown a
light of hope to fight against it to live in a green environment. The banking sector is now much
more concerned about carbon reduction.

The objectives of the thesis are to understand about Green Banking, the function of green
banking, how green banking works and serves the customer. And overall this paper helps to
know about the current green banking condition all over the country. This explores the
importance of Green Banking, sites international experiences and highlights important lessons
for sustainable banking and development in Bangladesh. However, we find that there has not
been much initiative in this regard by the banks and other financial institutions in Bangladesh
though they play an active role in our country’s economy.

The paper portrays the green baking practices in Bangladesh. Study is mainly based on
secondary data highlighting the mobile banking, online banking, green financing, and
guidelines for green banking practices as well as green banking unit. Green Banking is a new
way of conducting the banking business through considering the hygienic environmental issue
as well as corporate social responsibility (CSR).Nowadays, it is inevitable to practice green
banking by banks because of globalization and to face the competition. On an average, bank is
allocated Tk. 657.67 million for green banking in 2012. Since October2012, Taka 838.4 million
has been allocated to the following green projects. For 2012, banks have allocatedTk.20,
034.59 million for green finance of which Tk. 3273.69 million has been utilized during

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January-September 2012. The concept of green Banking is relatively new in Bangladesh and
yet to get momentum, but in the developing countries it is passing through a mature stage. The
study concludes that green banking practices in Bangladesh is not satisfactory at all.

Finally, it can be hoped that banking sector will be a best green banking performer if it strictly
maintains its green banking policy and can be an environment friendly Bank in upcoming days.
Therefore, we suggest possible policy measures and initiative to promote green banking in
Bangladesh.

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 Abbreviation
BB Bangladesh Bank.
CBA Cost Benefit Analysis.
CDM Clean: Development Mechanism.
IFC International Finance Corporation.
JI projects Joint Implementation projects.
SCBA Social Cost-Benefit Analysis.
UNIDO Approach United Nations Industrial Development
Organization Approach.

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 Table of Content
Letter of Transmittal…………………………………………………….. I
Student Declaration.....…………………………………………………… II
Supervisor's Approval....………………………………………………… III
Acknowledgement..………………………………………………………. IV
Abstract Summery………………………………………………………. V
Abbreviation............................................................................................ VI

Chapter 1: Introduction…………………………………………….. 01-04

1.1 Introduction 01
1.2 Background of the study 02
1.3 Research Problem 03
1.4 Objective 03
1.5 Research Question 04
1.6 Rationale and Significance of the Study 04
1.7 Structure of the Research 04

Chapter-02
Theoretical Discussion 05-18
Chapter 3
Methodology 20-21
3.1 Research Paradigm 20
3.2 Research Approach 20
3.3 Research Design 20
3.4 Research Design 20
3.5 Data Collection Method 20
3.6 Data Analysis Method 21
3.7 Data Analysis Method 21

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Chapter 4: Analysis & Findings 23-29
4.1 Analysis and Findings of the study 23
4.2 Fund allocation of Green Banking 24
4.3 Green Finance 25
4.4 Status of Green Finance under Bangladesh Bank’s Refinance Scheme 25
4.5 Online Banking 39
4.6 Mobile Banking 28
4.7 Banks’ in house Green activities 28
4.8 Findings 29

Chapter 5: Findings, Recommendations and Conclusion 31-32

5.1 Recommendations & Suggestions 31
5.2 Conclusion 32
References 33

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xii
Chapter-01
Introduction