PROJECT REPORT ON

“AN ANALYSIS ON GREEN BANKING PRDUCT OFFERED BY PUBLIC

SECTOR BANK ”

Submitted in partial fulfillment of the requirements for the

award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Of

BANGALORE NORTH UNIVERSITY

Submitted By: ASHA RANI M

REGISTER NUMBER : MB191907

Under the guidance of

Prof. JEENA RAJU

Assistant Professor

Patel Institute of Science & Management

K. AGRAHARA, OUTER RING ROAD, BEHIND

WORLD SAKARA HOSPITAL, BANGALORE 560103

2020-21
 GUIDE CERTIFICATE

This is to certify that the Project Report title “AN ANALYSIS ON GREEN BANKING
PRODUCT OFFERED BY PUBLIC SECTOR BANK” Submitted by STUDENT NAME
bearing REG NO to Bangalore North University, Bangalore for the award of Degree of
MASTER OF BUSINESS ADMINISTRATION is a record of work carried out by he/her under
my guidance.

This is not been submitted to any other university or institution for the award of any degree or
diploma certificate.

Date:

Place: Bengaluru Signature of the guide

 DECLARATION BY THE STUDENT

I hereby declare that “An analysis on green banking product offered by public sector bank” is
the result of the project work carried out by me under the guidance of Prof. JEENA RAJU in
partial fulfillment for the award of Master’s Degree in Business Administration by Bangalore
North University.

I also declare that this project is the outcome of my own efforts and it has not submitted to any
other University or Institute for the award of any other degree or Diploma or Certificate.

Place: BENAGALORE Name: ASHARANI M

Date: Register Number:MB191907

 ACKNOWLEDGEMENT

Preparing a research of this nature is an arduous task and I was fortunate enough to get support
from a large number of people to whom, I shall always remain grateful. I would like to express
my gratitude to connect BANGALORE allowing me to undertake this project.

I am also desirous of mentioning my profound indebtedness to guide Prof. JEENA RAJU for
the valuable advice, guidance, precious time and support offered.

Last but not the least, I would also like to thank all the respondents for giving me their precious
time, relevant information and advice without which I would not be able to complete this project

ASHA RANI M
MB191907
 TABLE OF CONTENTS

Chapter No Title Page No

Introduction
1
Review of Literature
2
Industry Profile
3
Theoretical background of the study
4
Analysis and interpretation
5
6 Findings & Conclusion
7 Annexure(s):

 Bibliography
 Questionnaire, if applicable.
 Statement(s), if any
 LIST OF TABLES

Serial No. TITLE OF TABLES Page No.

5.1 The table showing customer names

5.2 The table showing male and female respondents in marathahalli

branch .
5.3 The table showing qualification of respondent customer.

5.4 The table showing yearly income of respondent customer .

5.5 The table showing what types account have customer.in green
banking public sector bank.
5.6 The table showing profession sector customer . public sector bank

5.7 The table showing frequency of usage of green banking product

customer.
5.8 The table showing green banking product public sector bank in
marathahalli.
5.9 The table showing frequency of visiting customer.

5.10 The table showing number of years of banking in public sector bank

5.11 The table showing are you aware of green banking services .

5.12 The table showing which of the following green banking product you
use from the bank.
5.13 The table showing according to you which is more convenient green
banking product offered .
5.14 The table showing your frequency of usage of green banking product
by bank
5.15 The table showing are you aware following green banking product
offered by bank.
5.16 The table showing are you satisfied with the green banking product
 offered by bank.
5.17 The table showing for what purpose of satisfaction you are using the
green banking product.
5.18 The table showing please indicate your satisfaction level of green
banking product by rating.
5.19 The table showing are you satisfaction with over all green banking
product.
 LIST OF GRAPHS

Serial No. TITLE OF GRAPHS Page No.

5.1 Graph showing male female respondents in marathahalli
branch.

5.2 Graph showing age group age respondents

5.3 Graph showing no of respondents according to their occupation.

5.4 Graph showing number of respondents according to their in

income level.

5.5 Graph showing number of respondents according to their

account held with the bank.

5.6 Graph showing what types account have customer in green

banking banks.
5.7 Graph showing number of respondents according to their
awareness about green banking product sector bank in
marathahalli.
5.8 Graph showing number of respondents according to their use and
convenient mode of banking.
5.9 Graph showing number of according to their frequency of usage
level green banking services.
5.10 Graph showing number of respondents for awareness /
unawareness of green banking product offered by bank.

5.11 Graph showing number of respondents according to their purpose

of satisfaction you are using the green banking product.
5.12 Graph showing number of respondents please indicate your
satisfaction level of green banking product by bank.
5.13 Graph showing number of respondents please indicate your
satisfaction level of green banking product by bank
5.14 Graph showing number of respondents are you satisfied with
overall green banking product.
5.15 Graph showing number of respondents please indicate your
satisfaction online banking level customer.
5.16 Graph showing solar ATM banking respondents customer.

5.17 Graph showing green channel count respondents customer.

5.18 Graph showing green banking credit and debit respondents

5.19 Graph showing green banking product mist help full customer.
 EXECUTIVE SUMMARY

“green banking”, has been widely used both in scientific and in popular literature, and is gaining
more and more importance at present times. The importance of green banking stems from a number
of factors. The dominant one is definitely the very role that banks are called to play in the modern
economy worldwide. Banks are the main providers of liquidity and credit to the business, to the
individuals and to the public sector. In this role they have enormous capacity to influence all types
of actors in the economy. In this respect banks cannot stay aside of the processes that are taking
place at macroeconomic policy level. For the last 20 and more years, the awareness of climate
change and pollution has been gaining strength due to the adverse effects from these phenomena and
the increasing research activity dedicated to them. The findings of numerous research papers prove
that climate change is due to human activities causing pollution. Thus the vital importance of the
fight with through policymakers as well. This currect is based on To analysis green banking
products offered by public sector banks , Marathahalli. To analysis the frequency and awareness of
green banking products offered by public sector bank marathahalli .To study on satisfaction level of
green banking products offer by public sector banks marathahalli. 66.67% of the respondents public
sector bank more Then responding male ,and less than responding female 33.33%, in marathahalli,
32% of the respondents are undergraduate 33% of the respondents are graduate 11% of the
respondent are post graduate and other are respondents 24% , 51.35% of the respondents annual
income are above RS 50000, 40.50% of the respondents annual income are above 100000 , 8.11%
of the respondents annual income between RS 50000 -100000. Banking sector in Indian has given a
positive and encouraging responses to the financial sector reforms. Entry of new private banks and
shaken up Public sector banks to competition. The financial sector reforms have brought India
financial system closer to global standards. With the India increasingly getting integrated with the
global financial world, the Indian banking sector has a still long way to go to catch up with their
counter parts.

1
CHAPTER 1
INTRODUCTION
TITLE OF THE STUDY

AN ANALYSIS ON GREEN BANKING PRODUCT OFFERED BY PUBLIC SECTOR

BANKS ,MARATHAHALLI,BENGALORE ,

INTRODUCTION

There is no universally accepted definition of the term “green banking”, although it has been
widely used both in scientific and in popular literature, and is gaining more and more importance
at present times.

The importance of green banking stems from a number of factors. The dominant one is definitely
the very role that banks are called to play in the modern economy worldwide. Banks are the main
providers of liquidity and credit to the business, to the individuals and to the public sector. In this
role they have enormous capacity to influence all types of actors in the economy. In this respect
banks cannot stay aside of the processes that are taking place at macroeconomic policy level. For
the last 20 and more years, the awareness of climate change and pollution has been gaining
strength due to the adverse effects from these phenomena and the increasing research activity
dedicated to them. The findings of numerous research papers prove that climate change is due to
human activities causing pollution. Thus the vital importance of the fight with through
policymakers as well.

Currently there is common understanding that efforts at all levels are needed to ensure that
humanity is not to be destroyed in the near future by its own actions. This kind of thinking was
reflected in the targets that many countries in the world, among which the United Kingdom,
Australia, and the European Union as a whole placed on themselves with the aim to manage
climate change and pollution. Macro policy has been defining specific targets at micro and
macro level with the aim of attaining constraint of spreading of the already existing adverse
effects from climate change and pollution.

DEFINITION OF GREEN BANKING

To date, there is no commonly accepted definition of the term “green banking” outlining its
precise meaning and scope. For the past ten years, there are numerous scientific publications
related to the importance of various aspects of green business – green marketing, corporate
entrepreneurship as a means to achieving sustainable banking, etc`

As part of the research centered around other topics, few papers provide definitions on green
banking. In this respect Lalonde (2015) defines green banking as “…any form of banking from
which the country and nation gets environmental benefits. A conventional bank becomes a green
bank by directing its core operations toward the betterment of environment.” Bhardwaj and
Malhotra (2013) define it as “… an effort by the banks to make the industries grow green and in
the process restores the natural environment.” Papa Stergiou and Blane’s (2011) in essence
discuss green banking under the broader concept of sustainable banking and explain the
connection among the various organizational initiatives (including HR, marketing, internal
resource management) to achieve sustainability in the services the banks are offering. They build
their analysis on the basis of Jeucken (2001) four stage model. Isalm and Das (2013) point out
that green banking “…indicates endorsing environment-friendly practices and reducing carbon
footprint from banking activities.”

The definition proposed by the authors is that green banking is banking in all its business aspects
(deposit gathering, credit disbursement, trade finance, leasing operations, mutual fund s and
custodian services, etc.) which is oriented towards preservation of environment. And here a strict
delimitation needs to take place so that the term is understood and used correctly. Green banking
in its essence is actually the provision of loans, deposits and other banking products (mutual
funds and other investment products, custodian services etc.) that would have positive impact on
the environment. Activities such as introduction of paperless statements, electronic
communication with clients, internal efforts to save energy, paper and toners, various internal
campaigns targeting the building and sustaining of staff awareness vis-à-vis environmental
issues, PR and marketing activities in this direction, are not in their nature green banking
activities. This is true because all these efforts, though highly important for the organization and
for the society, do not represent core banking practices, and could be, and are deployed in many
other types of organizations, despite the fact that the latter are not banks. The proposed definition
of green banking is more narrow compared to the one proposed by other authors, such One of the
reasons why the understanding and usage of the term green banking is related to the practices
described above, and not to the core banking activities, is that these practices are comparatively
easy to put in place, and banks use the information on them for PR purposed. At the same time
the implementation of product lines targeting the specific and wide-raging environmental needs
requires huge efforts inside the bank, level of education and awareness especially among
corporate and risk officers, and last but not least, a lot of time for implementation. Another
important hurdle for the fast deployment of such kind of products and services is the fact that
oftentimes they are related to accepting higher financial risks on the part of the banks, or/and
lower interest rate margin, and in certain cases, even customer attrition (due to increased
requirements from the customers which are required to ensure that they operate in an
environmentally-friendly way). Also, this is against the interests not only of the bank as a whole
but also of the individuals who are supposed to sell those products and services, and whose
bonuses depend on the income they have generated.

ENVIRONMENTAL SUSTAINABILITY

The concept of environmental sustainability started in 1969 with the establishment of the
National Environmental Policy Act (NEPA, 2014) in the United States whose purpose is to
promote the general welfare, to maintain productive harmony between man and nature and to
fulfill the economic and social welfare of the present and future generations.

GREEN BANKING

Green Banking is like a normal bank, which considers all the social and environmental factors; it
is also called as an ethical bank. Ethical banks have started with the aim of protecting the
environment. These banks are like a normal bank which aims to protect the environment and it is
controlled by same authorities as what a traditional bank do. There are many differences
compared with normal banking, Green Banks give more weight to environmental factors, their
aim is to provide good environmental and social business practice, they check all the factors
before lending a loan, whether the project is environmental friendly and has any implications in
the future, you will awarded a loan only when you follow all the environmental safety standards.
Defining green banking is relatively easy. Green Banking means promoting environmental
friendly practices and reducing your carbon footprint from your banking activities. This comes in
many forms

Using online banking instead of branch banking.

Paying bills online instead of mailing them.

Opening up accounts at online banks, instead of large multi-branch banks

Finding the local bank in your area that is taking the biggest steps to support local green
initiatives.

Emerging Market Opportunities for Green Financial Products.

 Carbon Market: Carbon commodity products and services are developing at an

extraordinary pace, particularly among European and Japanese banks. In these regions,
setting up emissions trading desks, offering cutting-edge derivative products based on
carbon assets, and investing and buying credits from CDM and JI projects are all positioned
to become mainstream in one or two years. North American financial institutions that
familiarize their stakeholders with the complexities of the carbon market will likely
improve their reputations, while ensuring that future market opportunities are accurately
identified and pursued.

 Green Buildings: North America’s green commercial building sector is growing at

an unprecedented rate. By the end of 2006, over 6% of the US’ non-residential
construction, equivalent to approximately US$15 billion, was considered green,
whereas only six years ago this segment was less than 1%. In 2007, it is estimated
that green building development will actually reach a tipping point, where nearly
two-thirds of US builders will opt for green over conventional designs.

 2007 Report Green Financial Products & Services Current Trends and Future
Opportunities in North America Prepared for the North American Task Force
(NATF) of the United Nations Environment Programmer Finance Initiative 7 UNEP
FI • Green Financial Products and Services .

 Clean & Environmental Technology: Over the coming decades, tapping into clean
 energy and environmental technology opportunities will continue to require
innovative financing packages, developed through a long-term lens. Along with the
market valuation of the environmental sector, global investment in clean technology
companies expanded rapidly in 2006. By 2010, New Energy Finance predicts that
the growing environmental industry will see approximately US$100 billion in
private equity deals around the world. “

First Mover” Opportunity for Green Financial Products.

 Banks can market the benefits of going carbon neutral, while selling products and
services required for customers to realize this goal. This is especially relevant to the
retail banking and insurance sectors. Stakeholder Alignment Opportunities for Green
Financial Products.

 Financial institutions can become familiar with the entire product value chain by
partnering with contractors and manufacturers to offer green financial products.

 Financial institutions can align green financial product and service development with
federal, provincial, state, regional, or municipal environmental and energy policies,
targets or incentives.

 ■ Financial institutions can collaborate with environmentally-focused non-

governmental

 organizations and academic groups to design and offer green financial products
through: affinity relationships; supplementary items in product packages; client
workshops; and the design of robust environmental lending criteria.
Chapter 2
REVIEW OF LITERATURE
 Chaurasia (2020) he found that the there have not been many initiatives in green banking
in India. Green banking can ensure the environment by ensuring the online banking and e
banking . said that bb has developed the regulation of green banking in the year and the
green banking activities include using all of the bank s with care . it also company the
choices that taken sustain Ability into account
 Jeena Raju (2019) explored analysis on green banking initiatives by public sector
 banks & private sector banks with special reference to sbi&icici. The study was
found the highlight the initiatives taken by public and private sector banks i.e. SBI &
ICICI in India in the adoption of Green Banking practices and to enlist the significant
strategies for adoption of Green Banking. Study tells that green banking is not an easy
task; there are various challenges in making it a reality. It’s not only about reducing paper
use and getting digital; there are strategies that a bank should follow.This paper
highlighted the comparison of ignition of implementing green banking between
SBI(nationalised banks) & ICICI( private sector banks). This study revealed that private
sector banks aggressively started adopting green banking concepts which is one of the
means of cost cutting & environmental favour. SBI should adopt this technology driven
banking system as early as possible.
 Sahoo&Nayak (2018) reconnoitered the importance of Green Banking, sited
international experiences and highlighted the important lessons for sustainable
banking and development in India. The study found that there has not been much
initiative in this regard by the banks and other financial institutions in India though
they play an active role in India’s emerging economy. The study also suggested the
possible policy measures and initiative to promote green banking in India.

 Rajput et al. (2017) analyzed how Indian banks were responding to environmental
turbulence and to provide an overview of their action in view of green banking
adoption, awareness, drivers, challenges and gaps etc. The results revealed that there
 was a small group of banks in India that were leading the sector in tackling climate
change, mapping of carbon footprints internally and externally. Internationally, there
were several initiatives underway but the response of Indian banks was tardy and
sluggish especially in internationally consistent disclosures and environmental
protocols, which not only can spur innovation but also helped in pinpointing risk and
also generate opportunity. After reviewing the studies done in India and abroad, it is
very evident that many banks are putting their best endeavors to achieve sustainable
development by initiating green practices. The response to this environmental
turbulence is tardy. This study is a modest attempt to identify the various initiatives
undertaken by banks and provides some suggestions to initiate Green banking
practices in India.

 Jha&Bhome (2016) found the ways to Go Green through „Green Banking‟. The
study examines major aspects concerned with the Green Banking. The study found
that Green banking is a good way to get more awareness about global warming; each
businessman will contribute a lot to the environment. The concept of “Green
Banking” will be mutually beneficial to the banks, industries and the economy. It will
not only ensure the greening of the industries but it will also facilitate in improving
the asset quality of the banks in future.

 Sahitya et al. (2015) attempted to understand and appreciate the importance of green
initiatives for the attainment of goals of sustainable banking and determine the
various attempts that had been made by the top public and private sector banks in
India. The methodology consisted of a case study based approach of secondary
sources. The findings were that the banks had taken on the green initiatives. The
Private Banks are as much involved in the green banking approach as the Public
Sector Banks. All the banks are making efforts to make banking paperless. This had
been fully supported by technology in terms of electronic fund transfers, ATMs,
internet and mobile banking. Banks are in search of alternative energy sources for
running facilities like ATM‟s etc.
 The research study conducted by Chaurasia, Ashis Kumar (2014) has made an
attempt to highlight the major benefits, confronting challenges, strategic aspects of
Green Banking. It has also presented the status of Indian banks as far as Green
Banking adoption is concerned. Although banks in India play an active role in its
economy, still there has been not much initiative taken by them in this regard. Banks
should take environmental and ecological aspects as part of their lending principle by
going green, which would force industries to go for mandated investment for
environmental management, use of appropriate technologies and management
systems and also concern about the inherent Green value proposition.

 Gurusamy, S &Vengatesan, C (2013) in her research article explored the glimpse of

Green Banking besides highlighting the various products and services of Green
Banking. Further, the paper also attempted to capture the list of Greenest Bank at the
Global level and various initiatives taken by RBI towards Green Banking

 Jaggi, Geetika (2012) elucidated the concept of Green Banking and explained that
how a Public bank like State Bank of India and private banks ICICI Bank has set
some high examples in taking green initiatives. The author discussed that SBI had
Introduced Green Channel Counters and no queue banking in over 5000 branches
across India. The banks like ICICI Bank are encouraging the use of such cars, (Maruti
800, Omni and Versa, Santro and Eco, Civic and electric cars, CNG versions of Tata
and Mahindra vehicles) that saves energy, by waiving off 50 percent of processing
fee. Further banks are providing loans to the companies and investing too that follow
the guidelines related to green initiatives or protection of the environment. The most
significant finding propounded by the author was that the activities of banks are
highly driven by a triple bottom approach that includes people, planet and profit.
  Khedekar, Pratiksha (2011) explored the concept of Banking with technology i.e.
“Green Banking”. The author highlighted issues and challenges faced by customers
while using E-Banking. This paper provided a glimpse of Green Banking initiatives
adopted by Indian banks. Moreover, lastly, the author has given suggestions to banks
for creating awareness about Green Banking practices. The author concluded that
Indian Banks should expand the use of environmental information in their business
operations, credit extension and investment decisions. The endeavour will help them

 to proactively improve their environmental performance and creating long-term

values for their business.

RESERCH METHODOLOGY

TITLE OF THE STUDY

AN ANALYSIS ON GREEN BANKING PRODUCT OFFERED BY PUBLIC SECTOR
BANKS, MARTHAHALLI BANGALORE

STATEMENT OF THE PROBLEM

Green banking is different from traditional banking, as green banking focus on promoting
environment friendly banking. Green banking is also known as ethical banking. It may be
improving their energy efficiency buying green products , bank is a financial institution that
deals with masses and banks by adopting green activities can influence the attitude of the
Customers towards the environment. This project is conducted on the basis of various issues and
challenges faced by customers in implementing green banking products in current situation. It
also focuses on new green technology changes and how it impact to the banker and the
customers.

OBJECTIVES OF THE STUDY

1. To analysis green banking products offered by public sector banks , Marathahalli

 To analysis the frequency and awareness of green banking products offered by public
sector bank marathahalli

2. To study on satisfaction level of green banking products offer by public sector banks
marathahalli

3. To ascertain the problem faced by the customer in using green banking services

SCOPE OF THE STUDY

 The study entitled customer awareness towards particular green banking products
offered by public sector banks, Marathahalli

 The feedback was collected by certain customers of public sector banks situated in
an around marathahalli

 The study was entitled on the basis of green banking issues and challenges faced by
the customers in current scenario.

RESEARCH METHODOLOGY

The research design is a descriptive Research .this study is analyzed by tabular, graphical
& numerical summaries of data .its main purpose is to facilitate the presentation and inference of
data

TOOLS AND TECHNIQUES:

The primary data was collected by interview and schedule method from Bank managers in
various public sector banks situates near marathahalli. This study was analyed through the
application of statistical techniques such as bar graphs and pie charts.

SOURCES OF DATA

Primary data:
Primary data has been collected directly from customers through structured
questionnaires( individual sample unit )

Secondary data :

Secondary data has been collected from the websites of the banks.

SAMPLING METHOD:

Population includes male and female customers residing in the area of marathahalli criteria.

Sample size :

A sample size was 54

LIMITATION OF THE STUDY

1. The primary data was collected from various public sector banks SBI, HDFC, Dena
Bannk, ICICI, Canara bank & AXIS Bank customers of marathahalli area only

2. The sample size is 54, Collected by customers from various public sector banks near
Marathahalli, were only taken the large population for the study .

3. Due to the Covid situation, a direct conversation was not possible with the customer
instead the questionnaire was mailed and the customers had just posted the response.

CHAPTER SCHEME

Chapter – 1

It contains the introduction, meaning ,definition importance, objectives and advantages of the
study

Chapter -2

It contains the research design about the study

 Objectives of the study

  Scope and limitations of the study

 Review of literature and review gap of the study

 Research methodology used for the study

Chapter - 3

It contains about the profile ,mission, vision, objectives of the organisation,

Chapter -4

It contains the analysis, interpretations, chart and table of the study.

Chapter -5

It contains the findings , conclusions and recommendation of the study .

Chapter -6

It contains the questionnaire and bibliography used for the study.

CHAPTER 3
INDUSTRY PROFILE
PUBLIC SECTOR BANKS

Public Sector Banks (PSBs) are a major type of bank in India, where a majority stake (i.e. more
than 50%) is held by the government. The shares of these banks are listed on stock exchanges.
There are a total of 12 Public Sector Banks alongside 1 state-owned Payments Bank in India

History

Emergence of public sector banks

The Central Government entered the banking business with the nationalization of the Imperial
Bank of India in 1955. A 60% stake was taken by the Reserve Bank of India and the new bank
was named State Bank of India. The seven other state banks became subsidiaries of the new bank
in 1959 when the State Bank of India (Subsidiary Banks) Act, 1959 was passed by the Union
government.

The next major government intervention in banking took place on 19 July 1969 when
the Indira government National additional 14 major banks. The total deposits in the banks
National in 1969 amounted to 50 crores. This move increased the presence of banks in India,
with 84% of the total branches coming under government control.

Before the economic liberalization

The share of the banking sector held by the public banks continued to grow through the 1980s,
and by 1991 public sector banks accounted for 90% of the banking sector. A year later, in March,
1992, the combined total of branches held by public sector banks was 60,646 across India, and
deposits accounted for ₹1,10,000 crore. The majority of these banks was profitable, with only
one out of the 21 public sector banks reporting a loss.

Liberalization in the 2000

The national banks reported a combined loss of ₹1160 crores. However, the early 2000s saw a
reversal of this trend, such that in 2002-03 a profit of ₹7780 crores by the public sector banks: a
trend that continued throughout the decade, with a ₹16856 crore profit in 2008–2009
Mergers

The consolidation of SBI-associated banks started first by State Bank of India merging its
subsidiary State Bank of Saurashtra with itself on 13 August 2008. Thereafter it merged State
Bank of Indore with itself on August 27, 2010. The remaining subsidiaries, namely the State
Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of
Patiala and State Bank of Travancore, and Bharatiya Mahila Bank were merged with State Bank
of India with effect from 1 April 2017.

Vijaya Bank and Dena Bank were merged into Bank of Baroda in 2018 IDBI Bank was category
as a private bank with effect from January 2019

On 30 August 2019, Finance Minister Nirmala Sitharaman announced the government's plan for

further consolidation of public sector banks: Indian Bank's merger with Allahabad Bank (anchor
bank - Indian Bank); Punjab National Bank's merger with Oriental Bank of
Commerce and United Bank (anchor bank - Punjab National Bank); Union Bank of India's
merger with Andhra Bank and Corporation Bank (anchor bank - Union Bank of India);
and Canara Bank's merger with Syndicate Bank (anchor bank - Canara Bank) The mergers took
effect from 1 April, 2020.

Public Sector Banks

Public Sector Banks (Government Shareholding %, as of 31 October 2020)

1. State bank of India 56.92%

State Bank of India (SBI) is an Indian multinational, public sector banking and financial

services statutory body headquartered in Mumbai, Maharashtra. SBI is the 43rd largest bank in
the world and ranked 236th in the Fortune Global 500 list of the world's biggest corporations of
2019  A nationalized bank, it is the largest in India with a 23% market share by assets and a 25%
share of the total loan and deposits market.

2. Punjab National Bank (85.59%)

Punjab National Bank, abbreviated as PNB, is an Indian public sector bank headquartered in

New Delhi, India. The bank was founded in 1894 and is the second largest public sector
bank (PSB) in India, both in terms of business and its network. The bank has over 180 million
customers, 10,910 branches and 13,000+ ATMs post merger with United Bank of
India and Oriental Bank of Commerce, effective from 1 April 2020.

3 Bank of Baroda (71.60%)

Bank of Baroda (BOB) is an Indian multinational, public sector banking and financial

services company. It is the third largest public sector bank in India, with 131 million customers,
a total business of US$218 billion, and a global presence of 100 overseas offices. Based on 2019
data, it is ranked 1145 on Forbes Global 2000 list

4 Canara Bank (78.52%)

Canara Bank Limited is one of the largest public sector banks owned by the Government of
India. It is headquartered in Bengaluru. It was established at Mangalore in 1906
by Amambay and later the government nationalized the bank in 1969. The bank also has offices
abroad in London, Hong Kong, Moscow, Shanghai, Dubai, Tanzania and New York As per the
announcement made by the Finance Minister Nirmala Smitherman on 30 August
2019, Maniple based Syndicate Bank merged with Canara bank on 1 April 2020, making it the
fourth largest bank in the country.

5 Union Bank of India (89.07%)

Union Bank of India is one of the largest government-owned banks of India with 120+ million
customers and a total business of US$106 billion [1]. After the amalgamation with Corporation
Bank and Andhra Bank, which came into effect on 1 April 2020, the amalgamated entity
becomes the fourth largest bank in terms of branch network. UBI now has around 9500 branches
after the amalgamation. Four of these are overseas in Hong Kong, Dubai, Antwerp, and Sydney.
UBI also has representative offices at Shanghai, Beijing and Abu Dhabi. Lastly, UBI operates in
the United Kingdom through its wholly owned subsidiary, Union Bank of India (UK). Union
Bank of India was the anchor bank for both Andhra Bank and Corporation Bank, which came
into effect on 1 April 2020 as announced by finance Minister of India Nirmala Sitharaman.

6 Punjab & Sind Bank (83.06%)

Punjab & Sind Bank is a public sector bank (83.06%)[4] owned by the Government of India with
it's Head Office located in New Delhi. As on 31 March 2020, the bank has 1526 branches which
are widely spread across India, out of which 635 branches are in Punjab state. The bank has 25
Zonal Offices located all over India.

7 Indian Bank (88.06%)

Indian Bank is an Indian state-owned financial services company established in 1907 and

headquartered in Chennai, India. It serves over 100 million customers with 20,924 employees,
6,089 branches with 5,022 ATMs and 1,494 cash deposit machines and is one of the top
performing public sector banks in India. Total business of the bank has touched ₹430,000
crore (US$60 billion) as on 31 March 2019. Bank's Information Systems and Security processes
certified with ISO27001:2013 standard and is among very few Banks certified worldwide. It has
overseas branches in Colombo and Singapore including a Foreign Currency Banking Unit
at Colombo and Jaffna. It has 227 Overseas Correspondent banks in 75 countries. Since 1978,
the Government of India has owned the bank. As per the announcement made by the Indian
Finance Minister Nirmala Sitharaman on 30 August 2019, Allahabad Bank merged from 1 April
2020, making it the seventh largest bank in the country.

8 Bank of Maharashtra (92.49%)

Bank of Maharashtra is a major public sector bank in India. The Government of India holds

87.74% of the shares.[3] The bank had 15 million customers across the country with 1,897
branches as of 5 April 2016. It had the largest network of branches of any public sector bank in
the state of Maharashtra.

9 Bank of India (89.10%)

Bank of India (BOI) is an Indian commercial bank with headquarters in Bandra Kurla

Complex, Mumbai. Founded in 1906, it has been government-owned since nationalisation in
1969. Bank of India has 5,316 branches as of 31 March 2019, including 56 offices outside India,
which includes five subsidiaries, five representative offices, and one joint venture. [4] BoI is a
founder member of SWIFT (Society for Worldwide Inter Bank Financial Telecommunications),
which facilitates provision of cost-effective financial processing and communication services.
 10 Central Bank of India (92.39%)

Central Bank of India, a government-owned bank, is one of the oldest and largest commercial
banks in India. It is based in Mumbai which is the financial capital of India and capital city of
state of Maharashtra.

11 Indian Overseas Bank (95.84%)

Indian Overseas Bank (IOB) is a major public sector bank based in Chennai, India, with about

3,400 domestic branches, about 6 foreign branches and representative office. Founded in
February 1937 by Shri. M. Ct. Chidambaram Chettiar with twin objectives of specialising in
foreign exchange business and overseas banking, it has created various milestones in Indian
Banking Sector. IOB was the first bank to venture into consumer credit by introducing a personal
loan scheme. During nationalisation, IOB was one of the 14 major banks taken over by
Government of India.

12 UCO Bank (94.44%)

UCO Bank, formerly United Commercial Bank, established in 1943 in Kolkata, is a major

government-owned commercial bank of India. During FY 2013–14, its total business was ₹ 4.55
lakh crore. Based on 2014 data, it is ranked 1860 on the Forbes Global 2000 list. UCO Bank was
ranked 294th among India's most trusted brands according to the Brand Trust Report 2014, a
study conducted by Trust Research Advisory.[2] It was a rise of 796 ranks considering it was
listed at the 1090th position among India's most trusted brands in the Brand trust Report 2013.
[3]
 As of 30 March 2017 the bank had 4,000 plus service units 49 zonal offices spread all over
India. It also has two overseas branches in Singapore and Hong Kong. UCO Bank's headquarters
is on BTM Sarani, Kolkata

.
ACQUISITIONS

Mergers and Acquisitions: Banking Sector

Merger is defined as “a combination of two or more companies in which the assets and liabilities
of the selling firm(s) are absorbed by the buying firm.  Although the buying firm may be a
considerably different organization after the merger, it retains its original identity.”

MERGERS AND BANKING AND REGULATION ACT, 1949

Section 44A of the Banking Regulation Act of 1949, which states that no banking companies
shall amalgamate unless a scheme of such amalgamation is required to be approved by a two-
third majority of shareholders of each amalgamating company. Subsequently it is send to RBI for
its sanction. But at present either in person or proxy at the respective general meeting so
convened for the consideration of the scheme. Also, section 2A introduced by the Banking Laws
(Amendment) Act, 2011 provides for the non-applicability of the provisions of the Competition
Act to any banking company

MERGERS AND COMPANIES LAW, 2013r

Under Companies Act 2013, Chapter XV, states that any merger proposed between a bank and
company (not engaged in banking business) would, at first instance, require the approval of the
High Court and then subsequently by the RBI in order to put the scheme into effect, as mandated
only under the erstwhile Companies Act of 1956.

MERGER AND COMPETITION ACT, 2002

The Competition Act 2002 (Competition Act) is the principal legislation that regulates
Combinations (mergers and acquisitions) in India. Sections 5 and 6 of the Act, deal with the
regulation of mergers and acquisitions. The main objective behind introducing the Competition
Act of 2002 was to eliminate practices having appreciable adverse effect on competition
(AAEC), promote and sustain competition, protect customer’s interests and ensure freedom of
trade carried on by other participants in the market, to prohibit anti-competitive agreements and
abuse of dominate position, provide for regulation of combinations i.e., mergers, amalgamations,
acquisitions, etc. and to enjoin competition advocacy. Any combination which is likely to cause
any AAEC is void. Any bank pursuant to any loan or investment agreement enjoys exemption
from the rigors of combination provision; however, the disclosure of such combination is
required to make before the CCI within 7 days.

ROLE IN INDIAN PUBLIC SECTOR BANKS

Here we detail about the following nine important roles played by public sector in Indian
economy,

(1) Generation of Income,

(2) Capital Formation,

(3) Employment,

(4) Infrastructure,
(5) Strong Industrial Base,

(6) Export Promotion and Import Substitution,

(7) Contribution to Central Exchequer,

(8) Checking Concentration of Income and Wealth, and

(9) Removal of Regional Disparities.

1. Generation of Income:
Public sector in India has been playing a definite positive role in generating income in the
economy. The share of public sector in net domestic product (NDP) at current prices has
increased from 7.5 per cent in 1950-51 to 21.7 per cent in 2003-04. Again the share of public
sector enterprises only (excluding public administration and defence) in NDP was also increased
from 3.5 per cent in 1950-51 to 11.12 per cent in 2005-06.

2. Capital Formation:
Public sector has been playing an important role in the gross domestic capital formation of the
country. The share of public sector in gross domestic capital formation has increased from 3.5
per cent during the First Plan to 9.2 per cent during the Eighth Plan. The comparative shares of
public sector in the gross capital formation of the country also recorded a change from 33.67 per
cent during the First Plan to 50 per cent during the, Sixth Plan and then declined to 21.9 per cent
in 2005-06.

3. Employment:
Public sector is playing an important role in generating employment in the country.

(a) Public sector employment in government administration, defence and other government
services and

(b) Employment in public sector economic enterprises of both Centre, State and Local bodies. In
1971, the public sector offered employment opportunities to about 11 million persons but in
2003 their number rose to 18.6 million showing about 69 per cent increase during this period.
4. Infrastructure:
Without the development of infrastructural facilities, economic development is impossible.
Public sector investment on infrastructure sector like power, transportation, communication,
basic and heavy industries, irrigation, education and technical training etc. has paved the way for
agricultural and industrial development of the country leading to the overall development of the
economy as a whole. Private sector investments are also depending on these infrastructural
facilities developed by the public sector of the country.

5. Strong Industrial base:

Another important role of the public sector is that it has successfully build the strong industrial
base in the country. The industrial base of the economy is now considerably strengthened with
the development of public sector industries in various fields like—iron and steel, coal, heavy
engineering, heavy electrical machinery, petroleum and natural gas, fertilizers, chemicals, drugs
etc.

6. Export Promotion and Import Substitution:

The public sector enterprises which played an important role in this regard include—Hindustan
Steel Limited, Hindustan Machine Tools (HMT) Limited, Bharat Electronics Ltd., State Trading
Corporation (STC) and Metals and Minerals Trading Corporation.

7. Contribution to Central Exchequer:

The public sector enterprises are contributing a good amount of resources to the central
exchequer regularly in the form of dividend, excise duty, custom duty, corporate taxes etc.
During the Sixth Plan, the contribution of public enterprises to the central exchequer was to the
tune of Rs. 27,570 crore.

8. Checking Concentration of Income and Wealth:

Expansion of public sector enterprises in India has been successfully checking the concentration
of economic power into the hands of a few and thus are redressing the problem of inequalities of
income and-wealth of the economy. Thus, the public sector can reduce this problem of
inequalities through diversion of profits for the welfare of the poor people, undertaking measures
for labour welfare and also by producing commodities for mass consumption.
9. Removal of Regional Disparities:
From the very beginning industrial development in India was very much skewed towards certain
big port cities like Mumbai, Kolkata and Chennai. In order to remove regional disparities, the
public sector tried to disperse various units towards the backward states like Bihar, Orissa, and
Madhya Pradesh. Thus, considering all these foregoing aspects it can be observed that in-spite of
showing poor performance, the public sector is playing dominant role in all-round development
of the economy of the country.

Banks products

Banks and credit unions can provide a safe and convenient way to accumulate savings—and
some banks offer services that can help you manage your money.

Deposits at banks and most credit unions are federally insured up to a limit set by Congress. And
transaction (or checking) accounts and deposit accounts offer liquidity, making it easy for you to
get to your funds for any reason—from day-to-day expenses to a down payment or money for
unexpected emergencies. In addition to being insured by the FDIC, checking accounts let you
transfer money by check or electronic payment to a person or organization that you designate as
payee.
Organization structure
SWOT ANALYSIS OF BANKING SECTOR

Strengths

1. Banking is as old as the Human race:

The Banking business is the main impetus of any country. It helps in shaping the life of mankind
might be some time simply by Exchange (which was known as the trade framework), or by
exchange or by encouraging advances.

2. Source of employment & GDP growth :

There is an agreement among market analysts that the improvement of the money related
framework adds to financial development. Monetary advancement makes empowering
conditions for development through either an inventory driving (money related improvement
prods development) or an interest following. It is this industry that consistently attempts to verify
budgetary strength, encourage universal exchange, advance work, and diminish neediness around
the globe.

3. Hedge from risk :

Whether it is a characteristic cataclysm or man-made disaster banks relieve the eventual outcome
of the devastation by giving money related help to the unfortunate casualties to stand – up and
have a quiet existence once more.

4. Diversified services:

The financial business offers administrations from CASA to protection, to credit, to speculation.

5. Connecting People:

With the coming of new-age mechanical headway Banks have made the life of the regular man
simpler. Individuals can execute consistently in numerous spots.

6. Changing from mere savings & loan facilitator role:

The top needs of banks now days incorporate administrative consistence, improving resource
quality, upgrading client centricity, concentrating on computerized intermingling, and handling
rivalry from non-banks. Banks are in this manner making business and innovation ventures to
change their plans of action.

Must Read- SWOT analysis of Company Adidas

Weaknesses

1. Absence Of Coordination:

The worldwide financial industry faces momentary vulnerability because of the obligation
emergencies that challenge a few significant economies. Industry resources remain at $143
trillion (2013)&the EU is the biggest local market, with over 57% of the worldwide market.
Unpredictability in various markets/Currencies has made issues for the banks so as to work
appropriately over the fringes.

2. Vulnerable to risk:

Since this area manages accounts, it is the most hazardous segment that can change the destiny
of any business/Industry.

3. High NPA’s:

The rise in Retail and corporate NPA’s (Non-performing resources) is the single significant issue
this part is experiencing around the world.

4. Can’t reach to Under-penetrated market:

Due to a few clashing destinations of government and banks that goes connected at the hip,
provincial regions of creating countries are still not in the shadow of banks. In spite of the fact
that PMJDY (PradhanMantri Jan DhanYojna) actualized by the Indian banks got recognized by
the World Bank for money related consideration, the Idea isn’t completely promoted even in the
nation of origin.

Opportunities

1. Expansion:
Penetrating to the country markets and bringing the rustic masses under the domain of sorted out
financial will be the goal of the Banks in decades to come.

2. Changing Socio-cultural & demographic factors:

Given the statistic shifts coming about because of changes in age profile and family pay,
customers will progressively request upgraded institutional capacities and administration levels
from banks.

3. Rise in private sector banking:

Banking Industry over the world is exceptionally controlled &lead by PSU’s with their separate
national banks. With the approach of private division banks, this part is experiencing basic and
practical changes basically because of the adjustment of the trendsetting innovations and
expanded challenge in this way profiting the end clients.

Threats

1. Recession:

It is one of the significant dangers to the money related arrangement of the country. The horrible
stun of Economic emergencies and the breakdown of a few organizations can influence the banks
and the other way around.

2. Stability of the system:

Failure of some feeble banks has regularly compromised the steadiness of the framework.

3. Competition:

Competition from NBFC’s (Non-banking budgetary organizations) like insurance agencies and
common reserve organizations can influence the matter of Banks.
USE OF GREEN BANKING PRODUCTS IN BANKING SECTOR

 Go Online:
Online banking includes internet banking, mobile banking, tab banking, phone banking, RTGS
and NEFT transactions etc. The functions involved are pay bills online, online deposits, fund
transfer, account statements etc. Through these banking activities banks are ultimately
consume less paper, less energy and less expenditure on natural resources.
 Card based transactions:
Banks have introduced a variety of card based transactions by launching green channel
counters (GCC). GCC promotes card based transactions to their customers not only to reduce
the consumption of paper and energy but also to save the time of customers. A variety of cards
such as ATM, Credit and Debit cards, green remit cards, Foreign Travel Card, eZ Pay Card,
Gift Card, Smart Payout Card etc. are available for customers.

 Green Finance:
Bank should finance environment friendly projects and environment friendly products such as
solar equipment’s, recycled furniture, vehicle finance for low carbon emissions vehicles, home
finance for green buildings etc. with giving some concessions in processing fee and
concessional rate of interest.
 Green Infrastructure:
Green infrastructure includes IT infrastructure (Data Centers), green buildings with sufficient
natural lightening and air, generate electricity for their own use and waste recycling plants for
recycle their own waste. Green infrastructure may also be considered Self Service Passbook
Printers, Kiosks (Multi Function Kiosks and Self Service Kiosks), Cash Deposit Machines and
Contact Centre etc. It facilitates to reduce banks internal carbon footprint.
 Use of power saving equipment’s:
Use of solar powered UPS, GSL/LED bulbs, rain water harvesting by banks, establishing solar
powered ATMs etc.
GREEN BANKING INITIATIVES BY INDIAN BANKS
I) Public Sector Banks
A) State Bank of India
1. SBI has launched Green Chanel Counter from 1July, 2010 as an initiative and innovative
step of green banking. GCC is available in 7052 branches and average number of daily
transactions through it, is more than 100000.
2. SBI collaborated with Sullen Energy Limited and generate green power by installing
windmills with 15 MW aggregate capacities in the states of Nadu, Maharashtra and
Gujarat. SBI is the first bank in the country for generating Tamil green power.
3. Bank encourages shareholders to receive annual reports of the bank in electronic form and
contribute nominal sum to a charitable. The acceptance of electronic annual report (eAR) by
shareholders, bank has contributed Rs. 3.09 cr. (Rs.100/- for each eAR) to the SBI children’s
Welfare Fund in the financial year 2014.
4. The SBI has installed Solar. It is the largest deployed of solar ATMs and saving more than
2000 tons of CO2 per year ATMs.

5.Bank has undertaken tree plantation during monsoons and Bank has planted more than
450000 trees during last three years.
6.Rainwater Harvesting Projects are also implemented in number of bank building.
7.Bank has also involved in other initiatives such as construction of green building, waste
treatment plants, programs to sensitize staff on energy saving etc.
8.Bank installed solar lamps in rural areas not having dependable electricity supply.
9.Bank gives project loans at concessional rate of interest to encourage reduction of green
house gases by adopting efficient manufacturing practices.
10. The bank has initiated a pilot project to determine its carbon footprint levels which is helpful
to determine banks resource consumption pattern and able to take cost effective steps.
11. Best IT Implementation Awards 2010 by PC Quest: SBI‟s Project „Green IT @ SBI‟
was
rated as the Best Green IT Project for its GREEN ATM installation.
12. Bank has a signatory investor to the Carbon Disclosure Project and undertakes various
environmentally and socially sustainable initiatives through its branches spread across the
country.(WWF-INDIA, 2015)
B) Bank of Baroda
1.Bank has undertaken energy efficiency measures like up-gradation of AC, real time
monitoring of temperature and pressure, energy efficient IT equipment selection, energy
efficient CFL and LED lighting and solar powered UPS etc.
2.Bank requested to shareholders those having shares in physical form to register their e-mail
ids for further communication such as to serve any document, notice and annual report.
Shareholder holding shares in Demit form are also requested to register their e-mail ids with
respective depository for further communication purpose.
3.According to banks domestic loan policy borrower should obtain NOC from pollution control
board and produce it to bank. Bank do not extend any finance to the environmental hazardous
industries such as Chlorofluoro carbon (CFC-11,12,113) & Halons-1211,1301,2402 being
used in Foam Products, Refrigerators & Air-conditioners, Aerosol products, Solvents in
cleaning applications, fire etc. On other hand in case of any manufacturing unit emit
pollution bank insist to them for installation of water treatment plant for processing of such
pollutants.
4.The Bank gives preferential treatment for eco-friendly green projects such as Wind
Mills/Solar Power projects and earns carbon credits.
5.Bank has undertaken tree plantation program on the occasion of Foundation Day.
6.To create awareness with respect to environmental issues bank has undertaken debates, essay
competitions, painting competitions etc. for bank staff, staff children, and various school
children. Moreover bank also supports for clean environmental activities of NGOs.
7.Bank also promoted “Swatchh Bharat” campaign.
8.While financing to real estate projects, bank observes the guidelines of National Building
Code 2005 and promotes for harvest rain water, harnessing solar energy.
9.The bank has implemented Lending Automation Processing System (LAPS) system for
appraisal of Retail & SME loans, reducing the paper consumption.
10. As a part of green initiatives, bank has undertaken optimum technology utilization such as
windows server virtualization, desktop virtualization and backup consolidation, improve data
centre operational efficiency, application virtualization, Automatic Storage Management
(ASM) & Real Application Clusters (RAC) Implementation, Bandwidth up-gradation,
provision of backup link and use of new technology based on MPLS (Multi Protocol Label
Switching).
11. Bank has constructed buildings at Varanasi and Jaipur as per the standards of Indian Green
Building Council (IGBC) and installed 5 KW Solar panel for external lighting, staircase
lighting and basement lighting.
12. Bank has implemented Solar Power Generation System (SPGS) in 19 branches it will
provide alternative source of energy through UPS at branches.
13. Baroda Nonstop lobbies (lobbies) comprise of Five Self Service machines viz. Cash
Recycler, ATM, Multi Function Kiosk, Passbook Printer and Digital Signage System are
providing 24x7 routine banking services. The numbers of Lobbies are 45 and 151 in 2014
and 2015 respectively.
C) Punjab National Bank
1.Bank has undertaken diverse activities under green initiatives such as using of solar powered
ATM, PUM and CDM /Cheque Deposit Machines, using CFL Lamps instead of incandescent
lamps, rain water harvesting, printing on both sides of paper, immediate repair of any water
leakage, purchase multiple functioning composite fax machines, use of master sensor /
master switches for lights, fans etc.
2.In credit appraisal bank has given preference to environment friendly projects wind mills and
solar power projects.
3.As per bank lending policy bank always lend to those borrower who have NOC from
pollution control board. Similarly bank insists to manufacturing unit to install effluent
treatment project for processing of pollutants.
4.Bank has untaken several environmental protection activities through CSR initiatives. The
activities consist of Van Mahotsav, bank organized more than 249 Tree Plantation Drives,
plantation along road sides, greening of traffic circles in different cities and maintenance of parks
in residential areas etc.
5.Bank conducted energy audit of all offices as energy conservation initiative and maintain
electricity audit.
6.Bank has installed Solar UPS at selected ATM sites in Bihar and U.P. where the power cut is
high.
7.Sapling of 3345 plants was executed in the 33 Tree Plantation Camps organized during the
year 2014.
8.Bank has set up green lobby at bank branch at Bhikhaiji Came Place, New Delhi. The Cash
Deposit Machine, Passbook Updating Machine and Cheque Deposit Machine installed in the
lobby and all are powered by solar energy.
9.Bank has signed “Green Pledge” of the Ministry of New and Renewable Energy. Bank has
set up a butterfly park in the compound of the Guruvayur temple which houses 18 types of
medicinal plants.
10. Bank has considered steps for promotion of sustainable development with particular
reference to IFC Principles (The Equator Principles) on Project Finance.
11. For promotions of wind energy bank has envisaged providing 1 percent of its total advances
to it. Bank sanctioned 9 wind energy projects with aggregate limit of Rs.185.81 cr. during the
financial year 2010-11. Moreover banks awarded second prize for the “Best Wind Power
Project Financer” by Wind Power India 2011.
12. Bank also participated in Clean Delhi Drive to aware general masses to keep the city and the
surroundings clean
II) Private Sector Banks
A) ICICI Bank
1. Green Products & Services
1. Instabanking - Bank has provided a variety of services under one umbrella and gives
customers to convenience banking anytime anywhere through Internet banking, Mobile
banking, Tab banking and Interactive Voice Response (IVR) banking. This reduces the
carbon footprint of the customers because they do not have physical statements or travel to
their branches.
2.Electronic Branches- Bank has set up fully electronic branches where the customers can
conduct all their banking transactions.
3.E- Drive-Bank has sent nearly 200 thousand annual reports in electronic form and bank have
saved more than 60 tonnes of paper in the last quarter by sending e-statements to over 6.5
million bank accounts and 300 thousand credit card customers.
4. Vehicle Finance - Bank encourage to customers to use environment friendly vehicles by
offering 50 percent waiver on processing fee for those car models which uses alternate
sources of energy like the Civic Hybrid of Honda, Tata Indica CNG, Reva electric cars,
Mahindra Logan CNG versions, Maruti's LPG version of Maruti 800, Omni and Versa and
Hyundai's Santro Eco.(IBN Live, 2015)
5. Home Finance – The bank has reduced the processing fee for purchasing homes in
Leadership in Energy & Environmental Design (LEED) certified buildings.(IBN Live, 2015)
2. Green Engagements
1. World Environment Day'- Bank has celebrated World Environment Day every year on 5th a
June. On the occasion, bank has undertaken sapling plantation drive, along with PUC drive
where employees were encouraged to get their vehicle's PUC checked and vendors were set
up at select towers for the same.
2. 'Go Social' campaign was launched for employees where every individual could post pictures
of their green initiative on facebook and twitter, and spread the word to families and friends
to join in the journey to Go Green.
3. 'World Environment Week' - continued from June 09 to 13 with each day of the week
representing a different green theme: No plastic day, Reuse paper day, Carpool day, Duplex
printing day and Save energy day.
4. 'Solar Branches'- Solar power is a source of renewable and non-polluting clean energy.
Under the Bank‟s Go Green initiative, about 294 rural low cost branches have been fitted
with solar panels. As a result, bank has generated 1440 units of solar energy per branch
annually which led to the energy consumption cost has reduced considerably.
3. Green Communication
ICICI Bank has extensively capitalized the existing internal media and always insist to
customers about Online Bill pay, Online Funds Transfer and Subscribing to e-statements for
„paperless‟ and „commute-free‟ mode of conducting banking transactions.
B) HDFC Bank
1. To reduce environmental footprint bank has continuously undertaken green
procurement,
efficient lighting solutions, optimized travel planning, reducing paper consumption etc.
2. Bank has send PIN unique code number of debit card through SMS rather than send it by
post.(The Hindu, 2015)
3. Bank has made multiple banking channel for customers such as internet banking,
mobile
banking, ATM etc. which helps for paperless banking.
4. Bank installed solar ATMs and these ATMs use rechargeable Lithium Ion batteries
for
uninterrupted power supply.
5. Bank has introduced server and desktop virtualization for reducing power consumption.
6. Bank has initiated Energy Management Kits in branches such as use of star-rated and
energy
efficient air-conditioners, switching off the branch signage after 11 pm, replacing inefficient
lighting with LED lights etc.(BRR, 2013-14)
7. Banks are engaged in electronic media rather than print communication, establishment
of
multiple alternate service points paperless transactions, encouraging retail customers to
subscribe to e-statement, employee awareness campaigns to promote environment friendly
practices, deploying motion sensors to switch off lights in an empty room in select locations
etc.(BRR, 2013-14)
8. Bank managed their waste by tying up with vendors for recycling of paper and plastic in
addition to that, they used reusable cups and plates.
C) Axis Bank
1. The annual GHG emissions have reduced through use of renewable energy during the year

2.Axis bank launched tree plantation program and planted 1 lakh sapling on 1 and 2 august
over thousand locations of the country.
3. In August 2011, under the green banking activities with the theme of „Reduce,
Reuse and
Recycle‟ bank has processed all the dry waste recycle it into notebooks, notepads and
envelopes. The program has helped to recycle around 87,206 kg.(Axis media center, 2015)
4. Bank encouraged to their customers to use of e-statements and electronic communications
reduce paper consumption. In the financial year 2014 banks 61% of shareholders have
received their annual reports via e-mail.(Axis My Idea, 2015)
5. As a part of green initiative banks corporate office „Axis House‟ at Mumbai which
2015)Axis House has received the „Platinum‟ rating awarded by the US Green Building
Council for its environment friendly facilities and reduction of carbon emissions.(Axis Bank
Customer Care, 2015)
6.In November 2012, bank organized 'SPLASH' an all India painting competition for 7-12 age
group children at all its 1741 branches to spread awareness about environmental issues. The
themes of the competition are go green, save water, save life and one-earth and one family.
(Axis SPLASH, 2015)
7.Bank has adopted sustainable lending practices and without producing clearance from
pollution control authorities‟ bank does not finance to pollutant industries and insist to install
effluent treatment plant. (BRR, 2014-15)
8.Under green banking initiatives, banks 29 percent of statements are issued electronically, 83
percent of Demat accounts e-statements issued through electronic medium, 92 percent of
Demat welcome kits sent as e-welcome kit and 71 percent of shareholders registered for
eAR.(BRR, 2014-15)
9.Bank uses renewable energy for street lighting, collected water from rainwater harvesting
system and sewage treatment plant, furniture used by bank which is made out of recycled
materials etc. (greencleanguide.com, 2015)
10. Axis bank initiated solar-based UPS for ATMs under its Independent ATM Deployment
(IAD) model. (greencleanguide.com, 2015
11. To provide quicker services to the customers‟ bank has undertaken several initiatives such as
instant PIN generation (Green PIN), e-welcome kits, service request through SMS etc.(BRR,
2014-15)
Both public and private sector banks have effectively initiated Go Green Initiative. The
common activities of green practices of the banks are Green Channel Counter, introduced a
multiplicity of card based transactions, encouragement for eAR, e-statement, use of
energy conservation devices, installation of solar ATMs, finance for eco-friendly projects,
tree plantation and conducting awareness campaign about environmental issues etc. Based on
above mentioned points it is clears that, public sector banks have shown better performance in
terms of green banking activities than private sector bank.
CHAPTER – 4
THERETICAL BANKGROUND OF THE STUDY

A green bank (sometimes referred to as green investment bank, clean energy finance authority,
or clean energy finance corporation) is a financial institution, typically public or quasi-public,
that uses innovative financing techniques and market development tools in partnership with the
private sector to accelerate deployment of clean energy technologies. Green banks use public
funds to leverage private investment in clean energy technologies that, despite being
commercially viable, have struggled to establish a widespread presence in consumer markets.
Green banks seek to reduce energy costs for ratepayers, stimulate private sector investment and
economic activity, and expedite the transition to a low-carbon economy.

In the United States, green banks have been created at the state and local levels. The United
Kingdom, Australia, Japan, New Zealand and Malaysia have all created national banks dedicated
to leveraging private investment in clean energy technologies Together, green banks around the
world have driven approximately $30 billion of clean energy investment

GREEN BANKING PRODUCTS

Green Loans: means giving loans to a project or business that is considered environmentally
sustainable.

Green Mortgages: refers to type of mortgage that provides you a money-saving discount or a
bigger loan than normally permitted as a reward for making energy-efficient improvements or
for buying a home that meets particular energy-efficiency standards.

Green Credit Cards: Be it in form of environmentally friendly rewards or using biodegradable

credit card materials or promoting paperless banking, credit cards are going green.

Green Saving Accounts: In case of Green Saving Accounts, banks make donations on the basis
of savings done by customers .The more they save, the more the environment benefits in form of
contributions or donations done by banks Mobile banking and online banking: These new age
bank- ing forms include less paperwork, less mail, and less travel to branch offices by bank
customers, all of which has a positive impact on the environment.
THE EMERGING TREND OF GREEN BANKING

The term "Green Banking" is being heard more often today. According to Indian Banks
Association (IBA, 2014) Green Bank is like a normal bank, which considers all the social and
environmental / ecological factors with an aim to protect the environment and conserve natural
resources. It is also known as ethical bank or sustainable bank. Green banking can benefit the
environment either by reducing the carbon footprint of consumers or banks. On-line banking is
an example of an initiative of Green Banking.

Benefits of online banking include less paperwork, less mail and less driving to branch offices by
bank customers, which all have a positive impact on the environment. Interestingly, online
banking can also increase the efficiency and profitability of a bank. A bank can lower their own
costs that result from paper overload and bulk mailing fees if more of their customers use online
banking. Green banking also can reduce the need for expensive branch banks. Green banking is
also gaining importance in recent times. Most of the banks are undergoing computerization,
networking, and offering of online

banking to customers reduces the use of paper directly and indirectlyresulting in pollution
control.

Banks can also support eco-friendly groups, offer green lending and raise money for local
environment initiatives. Banks that go to these significant lengths to be Eco- friendly are a little
more difficult to find than the banks that claim to be green by merely offering online services.
Banks that offer rate incentives on Certificates of Deposits, money market accounts, online
savings accounts and checking accounts for online banking also help the green banking cause by
rewarding online banking customers.

There has been a remarkable improvement in the working of banks in terms of cutting costs,
increasing productivity, improving the profitability, controlling and management of the Non-
Performing Assets (NPAs), face the risks, carry out the Asset Liability Management, manage the
changes in interest rates, handle the foreign exchange rate fluctuations, comply with the
regulators requirements and finally improve the customer service to their best satisfaction. Hart
& Ahuja (1996 studied a positive correlation between environmental performance and financial
performance. Initially, banks were doing analysis of their financial performance only, but now it
is a time to do analysis of social and environmental performance as well. Green Banking is not
only a CSR activity of an organization, but also it is about making the society habitable without
any considerable damage.

Internationally and domestically, several voluntary guidelines have been set up for the
categorization, assessment and management of environmental and social risk in project financing
like Equators Principles, National Environment Policy Act, World Bank E&S Norms, Carbon
Disclosure Project, CERCLA, ISO 14000, BSE Greenex, etc.

The Financial Times and International Finance Corporation (IFC), a member of the World Bank
Group had launched the Sustainable Finance Awards for the institutions that are integrating
social, environmental and corporate governance considerations into their business operations.

Product and service review is divided into the following banking sectors:

■ Retail Banking

■ Corporate & Investment Banking

■ Asset Management

■ Insurance

■ Retail Banking

Green Mortgages: In general, green mortgages, or energy efficient mortgages (EEMs), provide
retail customers with considerably lower interest rates than market rates for clients who purchase
new energy efficient homes and/or invest in retrofits, energy efficient appliances 2007 Report
Green Financial Products & Services Current Trends and Future Opportunities in North America
Prepared for the North American Task Force (NATF) of the United Nations Environment
Programme Finance Initiative According to a recent Yale poll, 75% of Americans acknowledge
their own behavior can help reduce global warming; and 81% feel it is their responsibility to take
action against this environmental challenge. According to the same study, 75% of the public is
willing to purchase solar panels, and 67% would consider buying a hybrid vehicle. 2007 Report
Green Financial Products & Services Current Trends and Future Opportunities in North America
Prepared for the North American Task Force (NATF) of the United Nations Environment
Programme Finance Initiative 3 UNEP FI • Green Financial Products and Services or green
power. Banks can also choose to provide green mortgages by covering the cost of switching a
house from conventional to green power, as well as include this consumer benefit when
marketing the product. These retail products come in different designs, some of which have met
more success than others.

Green Financial Products & Services:

Current State of Play and Future Opportunities Financial institutions are starting to see the “top
line”, money-making reality of delivering sustainability to corporate and retail clients. There’s
nothing like a new, successful product or service roll-out to get a banker’s, insurer’s or asset
manager’s blood flowing. Products that gain traction in the market-place will delight clients, add
value, build careers and boost the bonus pool. With a remarkable eco-Zeitgeist capturing the
public and corporate imagination worldwide, financial institutions are rushing to market with
new or re-packaged product and service offerings from green auto insurance to innovative pro-
eco mortgages and new sustainability-backing investment funds. UNEP Finance Initiative’s
North American Task Force has taken a tour around the world of financial services to assess
what’s in the market, what the key trends are, who’s innovating and what products and services
are persuading clients to lend, buy, invest or insure. If you enjoy this CEO Briefing then be sure
to download the full study from the UNEP FI website at www. unepfi.org. Consumers are
witnessing a flood of new financial products and services geared towards rewarding and/or
stimulating environmentally-sustainable behavior and practices. No longer relegated to niche
markets, these green financial offerings are appearing across all regions and banking sectors. The
speed at which new products are being launched, along with the range of different product
designs and features, has made it challenging for financial sector stakeholders to keep abreast of
developments, along with their drivers and trends. This briefing summarizes the findings of a
more comprehensive UNEP FI study (download available at http://www.unepfi.org/fileadmin/
documents/greenprods_01.pdf), exploring currently available or proposed green financial
products and services.

The Case for Green Financial Products While green financial product and service opportunities
vary across sectors and markets, a business case for these items is gradually taking shape.
Tangible benefits to green product/service development may include:

■ Improved market share

■ Increased profits

■ Customer acquisition and loyalty

■ Higher employee satisfaction and retention

■ Reputational benefits (improved brand image)

■ Positive media attention

■ Environmental awareness and benefits

■ Improved license to operate

■ Strengthened relationships and partnerships with external stakeholders 2 UNEP FI

• Green Financial Products and Services Drivers & Trends of Green Product Development The
demand for environmental products and services, particularly green financial products and
services, is on the rise in North America. Comparing this green evolution of North America’s
attitudes to those abroad, it becomes apparent why North America’s financial institutions have
been slower in offering green banking products and services. However, this comparison indicates
the direction in which new product and service offerings are headed. Three overarching drivers
and trends are behind the emergence and growth of green product and service demand:

■ Environmental Knowledge & Media Coverage: The information age has enabled an
unprecedented understanding of the severity, sources and implications of various environmental
challenges. Higher levels of media coverage about these issues, along with multinational
environmental campaigns and outreach initiatives have helped improve the general public’s
understanding of the issues.

■ Environmental Awareness & Public Opinion: A relatively high degree of environmental

awareness and government support for environmental sustainability in Europe has driven ever-
growing consumer demand for “eco-friendly” products and services. Recent opinion polls,
corporate initiatives, and shareholder actions suggest a similar environmental awakening is
building momentum in North America.

■ Environmental Regulation & Legislation: Regulatory actions, particularly those which provide
price certainty in environmental markets and those that prohibit unsustainable practices, can
significantly stimulate demand for green products and services among bank clients. In Europe,
proactive governmental policy, such as the European CO2 Emissions Trading Scheme, German
feed-in-tariffs for renewable energy and Dutch Green Funds, has helped trigger both demand for,
and development of, greener consumer options.

This product and service review is divided into the following banking sectors:

■ Retail Banking

■ Corporate & Investment Banking

■ Asset Management

■ Insurance

■ Retail Banking

Green Mortgages: In general, green mortgages, or energy efficient mortgages (EEMs),

provide retail customers with considerably lower interest rates than market rates for clients who
purchase new energy efficient homes and/or invest in retrofits, energy efficient appliances 2007
Report Green Financial Products & Services Current Trends and Future Opportunities in North
America Prepared for the North American Task Force (NATF) of the United Nations
Environment Programa Finance Initiative According to a recent Yale poll, 75% of Americans
acknowledge their own behavior can help reduce global warming; and 81% feel it is their
responsibility to take action against this environmental challenge. According to the same study,
75% of the public is willing to purchase solar panels, and 67% would consider buying a hybrid
vehicle. 2007 Report Green Financial Products & Services Current Trends and Future
Opportunities in North America Prepared for the North American Task Force (NATF) of the
United Nations Environment Programme Finance Initiative 3 UNEP FI • Green Financial
Products and Services or green power. Banks can also choose to provide green mortgages by
covering the cost of switching a house from conventional to green power, as well as include this
consumer benefit when marketing the product. These retail products come in different designs,
some of which have met more success than others.

Green Home Equity Loans: Reduced rate home equity loans, sometimes referred to as ‘second
mortgages’, can help motivate households to install residential renewable energy (power or
thermal) technologies. In designing and offering these incentive-based products, a number of
banks have also partnered with technology providers and environmental NGOs. Green
Commercial Building Loans: Attractive loan designs and arrangements have started to emerge
for green commercial buildings, characterized by lower energy consumption (~15- 25%),
reduced waste and less pollution than traditional buildings. Some appraisers are now recognizing
reduced operating expenses, improved performance and longer lifetimes associated with these
green functions and features. Lower project costs improve net operating income, a key factor
when evaluating property using the income approach

. Green Car Loans: With below market interest rates, many green car loans encourage the
purchase of cars that demonstrate high fuel efficiency. The number of these products has
increased in recent years, with the majority being offered in Australia and Europe. Most green
car loans are being offered by credit unions, such as mecu (see box 1), as innovative vehicle
lending has proven to be an ideal niche for smaller financial institutions. .

Green Cards: A broad family of green products includes debit and credit cards linked to make
environmental activities. Most green credit cards offered by large credit card companies offer to
NGO donations equal to approximately one-half percent of every purchase, balance transfer or
cash advance made by the card owner. Annual Percentage Rates (APR) for affinity cards
normally range between 15-22%, and many also charge annual user fees. Over the past year,
tying cards to a GHG offset program has become increasingly popular among European financial
institutions. This supplementary service can be implemented at little cost to the financial lender,
with the potential for sizeable financial and reputational returns. In recent months, some banks
have announced ambitious green credit card designs, including the Barclaycard Breathe (see box
Corporate & Investment Banking

Green Project Finance: A number of banks have created service divisions, or teams, dedicated
to large-scale renewable energy project finance, such as Rabobank International’s Project
Financing Department, Barclay’s Natural Resources Team and WestLB’s Global Energy Team.
By 2005, the majority of leading European banks had debt portfolios that contained committed
lines to entirely, or partially, finance renewable energy assets. Banks have also started to employ
innovative financing arrangements for large-scale clean fuel and renewable energy projects.
Leaders in this space have achieved reputational benefits through media exposure, public
recognition and corporate responsibility awards.

Green Securitization: A variety of innovative environmental securitization techniques have

begun to emerge, including: forest bonds (see box); eco-securitization pilot programs; and green
mortgage-backed securities.

Green Venture Capital & Private Equity: We increasingly see consideration paid to
environmental issues when financing companies through the capital market (IPOs Product Case
Study 1 Auto Loan In 2003, Australia’s , the first credit union in the world to become a member
of UNEP FI, took the lead in creating an innovative product package for its goGreen® auto loan;
a decision that quickly paid off. For each loan, the bank considers a GHG rating associated with
the vehicle type, and provides a low interest rate accordingly. In addition, for the term of the
customer’s loan, the bank also commits to offsetting 100% of the car’s CO2 emissions.

4 UNEP FI • Green Financial Products and Services and bond issues). In particular, banks can
play a pivotal – and profitable - role in assisting with IPOs for clean technology providers,
carbon credit developers and other firms marketing environmental products and services. Banks
can also establish a capital base for environmental projects through specialized private equity
units focused on clean energy growth markets and investment opportunities.

Green Indices: Some banks have recently developed indices that fluctuate as future
environmental opportunities and challenges emerge. For instance, ABN AMRO has developed
an equity index consisting of firms whose businesses address issues related to global warming
and the environment. This builds on a series of indices, created in 2006, which was based on
individual industries, including carbon abatement technologies, water, solar, ethanol, renewable
energy and natural gas. More recently, Merrill Lynch has developed an energy efficiency index,
the only index to focus solely on energy conservation and demand side management. The new
index identifies well-positioned market segments, with lower levels of energy consumption, and
thus smaller carbon footprints.

Carbon Commodities: To date, carbon market products and services have largely been found in
Europe, driven by the January 2005 implementation of the EU Emissions Trading Scheme (EU
ETS); a scheme that has put over 12,000 European industrial sites, including some US
subsidiaries, under a carbon constraint. In North America, only a few banks have taken steps
towards participating in the growing carbon market, including: Goldman Sachs, Merrill Lynch,
JPMorgan Chase, Morgan Stanley, Citigroup and Bank of America. Carbon finance centers on
the provision of equity, loans and/or upfront or upon delivery payments to acquire carbon credits
from Clean Development Mechanism (CDM) and

Asset Management

Joint Implementation (JI) projects. Most banks acquire carbon credits in order to serve their
corporate clients’ compliance needs, or to supply a tradable product to the banks’ trading desks.
Several European banks, namely HSBC, Barclays Capital, Fortis, and ABN AMRO, are very
active in this field, employing a range of financing approaches to improve portfolio
diversification, secure opportunities and hedge risks.

Green Fiscal Funds: Dutch banks currently benefit from a government-led Green Fund
initiative, launched in 1995. By purchasing shares in a green fund, or investing money in a green
bank, citizens are exempted from paying capital gains tax and receive a discount on income tax.
Investors can therefore accept a lower interest rate on their investment, while banks can offer
green loans at a lower cost to finance environmental projects. To date, Rabobank has established
one of the more successful green funds; in 2005, its fund had acquired 63,000 investors and
provided €2 billion in green loans.

Green Investment Funds: Sustainable investment funds have evolved through three
generations, where the complexity of assessing investment eligibility rises at each level. First
generation funds solely employ exclusionary social and/or environmental criteria; second
generation funds use positive criteria that concentrate on progressive social and/ or
environmental policies and practices; and third generation funds apply both exclusionary and
positive criteria to assess and select potential investments, with a focus on relative performance
within a sector using a best-in class approach.

Carbon Funds: Collaboration between multilateral development banks and private financial
institutions has led to the emergence of a variety of carbon funds to help finance GHG emission
reduction projects to curb climate change. Acting as a collective investment scheme, a carbon
fund receives money from investors to purchase CO2 emission reduction credits (including, but
not Gaining Expertise in the Carbon Market: Best Practice Case BNP Paribas has widely
recognized expertise in carbon financing, and has successfully established a carbon credits
portfolio, exceeding 25 million tones until 2012.

Green Insurance:

This type of insurance typically encompasses two product areas:

1) insurance products which differentiate insurance premiums on the basis of

environmentally related characteristics; and 2) those specifically tailored for clean
technology and emission reducing activities. Examples of green insurance products include
green auto insurance, where the premium is linked to the use – and thus environmental
footprint – of the vehicle, and green home insurance, where special rates are provided for
energy efficient buildings or carbon offset schemes are offered to help clients achieve carbon
neutrality.

2) Carbon Insurance: There are many risks inherent in emission reduction transactions, as
well as low-carbon project assessment and development activities. In response, some
financial institutions now offer insurance products to manage carbon credit price volatility.
For instance, Swiss Re offers a carbon-delivery insurance product based on Emission
Reduction Purchase Agreement contracts, and AIG and Marsh offer coverage on all
traditional and Kyoto-specific risks associated with these riskier environmental schemes.
Swiss-Re has also created the “Contingent Cap Forward for Emissions Reduction Trades,” an
insurance product that covers counter-party and delivery risks faced by buyers of EU
allowances, to ensure that carbon transactions are completed within a certain cost range.
CHAPTER 5
ANALYSIS AND INTERPRETATION
TABLE NO 4.1
NUMBER OF RESPONDENTS ACCORDING .TO THEIR GENDER

GENDER NO. OF RESPONDENTS PERCENAGE

MALE 36 66.67%
FEMALE 18 33.33%
TOTAL 54 100%

Chart Title

FEMALE
33%

MALE
67%

INTERPRITION
33% female respondents AND MALE respondents 67%
TABLE 4.2
NO.OF RESPONDENTS ACCORDING TO THEIR OCCUPTION

MODE OF OCCUPATION
OCCUPATION NO.OF RESPONDENTS PERCENAGE
UNDERGRADUATE 17 31.48%
GRADUATE 18 33.33%
POS GRADUTE 6 11.11%
OTHERS 13 24.07%
TOTAL 54 100%

PERCENAGE

OTHERS
24% UNDERGRAD-
UATE
31%

POS GRADUTE
11%

GRADUATE
33%

INTERPRITION

The above table shows that 32 % of the respondents are undergraduate, 33% of the respondents
are graduate, 11 % of the respondents are post graduate and others are 24% .

TABLE NO 4.3

NUMBER .OF RESPONDENTS ACCORDING TO THEIR INCOME LEVEL

 CATEGORY OF INCOME
LEVEL
INCOME LEVEL (INRS) NO.OF RESPONDENTS PERCENTAGE
BELOW 50,000 19 51.35 %
50,000 -100,000 3 8.11%
ABOUE 1,00,000 15 40.54%
TOTAL 37 100%

PERCENTAGE 0f income level of the

respondents
51.35

40.54

8.11

BELOW 50,000 50,000 -100,000 ABOUE 1,00,000

INTERPRITION

From the above table

51.35 % of the respondents annual income are above Rs 50000 40.54 % of the respondents
annual incomes are above 100000 8.11% of the respondents annual income are between RS.
50000 – 100000

TABLE 4.4

NO OF RESPONDENTS ACCORDING TO THEIR ACCONT HELD WITH THE

BANKS:
 STATUS NO.OF.RESPONDENTS PERCENTAGE
BELOW 1YEAR 1 1.85%
1 – 3 YEARS 1 1.85%
3 – 5 YEARS 2 3.70%
ABOVE 5 YEARS 50 92.6%
TOTAL 54 100%

PERCENTAGE
PERCENTAGE

92.6

1.85 1.85 3.7

BELOW 1YEAR 1 – 3 YEARS 3 – 5 YEARS ABOVE 5 YEARS

INTERPRITION

From the above table

93% of the respondents are having above 5 years with the banks 3.7% of the respondents are
between 3 -5 years and 1.9 % of the respondents are 1 – 3 years Remaining 1.9 % of the
respondents are having account below 1 year with banks

TABLE NO 4.5

NO OF RESPONDENTS ACCORDING TO THEIR AWARENESS ABOUT GREEN

BANKING PRODUCT PUBLIC SECTOR BANKS IN MARATHAHALLI
( DENA BANK , CANARA BANK ,ICICI BANK, AXIS BANK , HDFC )
AWARENESS ABOUGREEN BANKING PUBILC SECTOR
STATUS NO.OF.RESPONDENTS PERCENTAGE
YES 50 92.6%
NO 4 7.41%
TOTAL 54 100%

NO . OF RESPONDANTS

PERCENTAGE

NO
7%

YES
93%

INTERPRITION

From the above table

93 % of the respondents are aware of the green banking services offered by the bank and
there are 7 % who are unware of it .

TABLE NO 4.6

NUMBER OF RESPONDENTS ACCORDING TO THEIR USE AND CONVENTIENT

MODE OF BANKING :
CLASSIFICATIONS BASED ON CUSTOMER’S USE & CONVENIENT MODE OF
BANKING
STATUS NO.OF.RESPONDENTS PERCENTAGE
MOBILE BANKING 32 16.8%
PHONE BANKING 28 14.7%
INTERNET BANKING 26 13.7%
CREDIT CARD 5 2.63%
ELECTRONIC FUND 32 16.8%
TRANFER
PAPERLESS STATEMENT 22 11.6%
DEBIT CARD 45 23.7%

PERCENTAGE
PERCENTAGE
23.7
16.8 16.8
14.7 13.7 11.6

2.63

INTERPRITION:

23.7 % of respondents use Debit card, 2.63 % of respondents use Credit card ,16.8 % of
respondents use Mobile banking 16.8 % of respondents use Electronic fund transfer

14.% of respondents use phone banking 11. 6% of respondents use Paperless Statement 13.7%
of respondents use internet banking
TABLE NO 4.7

NUMBER OF ACCORDING TO THEIR FREQENCY OF USAGE LEVEL GREEN

BANKING SERVICES
Classification based on the frequency of their usage in the green banking services
Status NO .Of. Respondents Percentage
Very Frequently 10 18.52%
Frequently 26 48.15%
Rarely 18 33.33%
Total 54 100%

Percentage
19%
33%

48%

Very Frequently Frequently Rarely

INTERPITION :
19 % of the respondents use this service very frequently,48% of the respondents use this service
frequently,33 % of the respondents use this service rarely ,

TABLE NO 4.8

NUMBER OF RESPONDENTS FOR AWARENESS / UNAWARENESS OF GREEN

BANKING PRODUCTS OFFERED BY BANKS
S . NO PRODUCTS RESPONDANTS PERCENTAGE
 AWARE OF
UNAWARENESS
1. Online bank 35 16.91%
2. Mobile bank 35 16.91%
3. Solar ATM 51 24.64%
4. Green channel 37 17.9%
count
5. Green bank 49 23.67%
credit /debit

Chart Title
Series1

24.64
23.67

17.9
16.91 16.91

Online bank Mobile bank Solar ATM Green channel count Green bank
credit /debit

INTERPRITION :

FROM THE ABOVE TABLE , OUT OF 54 RESPONDENTS

24.64 % the respondents are aware of solar ATM 23.67 % the respondents are aware of green
bank credit & debit 17.9 % the respondents are aware of green channel count 16.91 % the
respondents are aware of mobile bank 16.91 % the respondents are aware of online bank
TABLE 4.9

NUMBER OF RESPONDENTS ACCORDING TO THEIR PURPOSE OF

SATISFACTION YOU ARE USING THE GREEN BANKING PRODUCT

Purpose of in the green banking service

Status NO.OF.RESPONDENTS PERCENTAGE
Fast transactions 5 9.26%
Saves times 1 1.9%
No need to visit bank 0 0
Cheap and best 1 1.9%
48 88.89%

All of the above

Total s 54 100%

PERCENTAGE
PERCENTAGE
88.89

9.26 1.9 1.9

0
s es st e
on m nk be ov
ac
ti ti ba b
ns ve
s
isi
t
an
d ea
rt a Sa v p f th
st to ea llo
Fa ed Ch A
ne
No

INTERPRITION:
88.89 % of the respondents use because for all above purpose and 1.9 % of the respondents use
because it cheap and best 1.9 % of the respondents use because it saves times 9.26 % of the
respondents use because it fast transactions

TABLE 4.10

NUMBER OF RESPONDENTS PLEASE INDICATE YOUR SATISFACTION LEVEL

OF GREEN BANKING PRODUCT BY RATING
SL NO Green 5 4 3 2 1 TOTAL
banking
product
1 Online 5 10 11 24 4 54
banking

Online banking
Online banking

54

24
10 11
5 4
5 4 3 2 1 TOTAL

MOBILE BANKING TOTAL

SL.NO Green 5 4 3 2 1 TOTAL
Banking
2 Mobile 6 11 16 20 1 54
banking

Mobile banking
Mobile banking

54

16 20
11
6
1
5 4 3 2 1 TOTAL

SOLAR ATM
SL NO Green 5 4 3 2 1 TOTAL
banking
3 Solar 15 30 7 2 0 54
ATM
 Solar ATM
Solar ATM
54

30

15
7
2 0
5 4 3 2 1 TOTAL

GREEN CHANNEL COUNT

SL NO Green 5 4 3 2 1 TOTAL
banking
4 Green 6 33 2 12 1 54
channel
count
 Green banking Green channel count
33

12

6
5 4 3 2 2 1 1

1 2 3 4 5

GREEN BANKING CREDIT AND DEBIT

SL NO Green 5 4 3 2 1 TOTAL
banking
product
5 Green 8 10 8 22 6 54
banking
credit&debit

Green banking credit&debit

Green banking credit&debit
54

22

8 10 8 6

5 4 3 2 1 TOTAL
TABLE 4.11

NUMBER OF RESPONDENTS ARE YOU SATIFIFIED WITH OVER ALL GREEN

BANKING PRODUCTS
Awareness about green banking product
STATUS NO. OF. RESPONDENTS PERCENTAGE
YES 47 87.4%
NO 8 14.8%
TOTAL 54 100%

PERCENTAGE
YES NO

14%

86%

INTERPRITION :

From the above table

86% of the respondents use green banking product aware 14% of the respondents use green
banking product unaware
CHAPTER – 6
FINDINGS
 66.67% of the respondents public sector bank more Then responding male ,and less than
responding female 33.33%, in marathahalli,
 32% of the respondents are undergraduate 33% of the respondents are graduate
11% of the respondent are post graduate and other are respondents 24% ,
 51.35% of the respondents annual income are above RS 50000, 40.50% of the
respondents annual income are above 100000 , 8.11% of the respondents annual
income between RS 50000 -100000,

 93% of the respondents are having above 5 years with the public sector banks , 3.7% of
the respondents are between ,3-5 years and 1.9% of the respondents are 1 -3 years
remaining , 1.9% of the respondents are having below 1year with banks,

 93% of the respondents are awareness of the green banking services offered by the bank
and there are, 7% who are unware of it,

 23.7% of the respondents use debit card , 26.3% of the respondents use credit card ,
16.8% of respondents use mobile banking , 16.8% of respondent use electronic fund
transfer, 14% of respondents use phone banking , 11.6% of the respondents use paperless
statement , 13.7% of respondents internet banks ,

 19% of the respondents use this service very frequently , 48% of the respondents use the
service frequently , 33% of the respondents use this service rarely ,
  24.64% of the respondents are aware of solar ATM , 23.67% the respondents re
awareness of green bank credit and debit , 17.9% the respondents are aware of green
channel count , 16.9% the respondents are aware of mobile bank , 16.9% the respondents
are aware of online bank ,

 88.89% of the respondents use because for all above purpose and , 1.9% of the
respondents use because it cheap and best , 1.9% of the respondents use because it saves
it save tim[es , 9.26% of the respondents use because it fast transitions ,

 86% of the respondents use green banking product aware, 14% of the respondents use
green banking product un aware ,

Conclusion

The concept of green banking still has a long way to go until it gets fully mainstreamed in the
banking sector. However, simultaneous activation of both top-down and bottom-up
engagement in raising the awareness of green banking has taken off. Policy makers and
regulators have been increasingly realizing the importance of adopting green banking policy
interventions as a means to transform the financial sector which can immensely contribute
towards helping countries meet their climate targets and goals. Especially, the role of central
banks and financial regulators is key as they have the power to change and control dynamics
and landscape of the financial sector. Considering that most developed countries rely on a
voluntary code of conduct by their banks and focus on the information disclosure while
developing countries tend to use more regulatory approaches to promote green banking
activities, future research could examine the performance and effectiveness of each green
banking policy instrument and identify which approach is proven to be more effective or has
the better prospect. However, it is expected to take considerable time before any researcher can
undertake such analysis because of a lack of data availability as this is very new research area.
It would be equally challenging to design and develop the criteria against which performance
and effectiveness of the policy instrument will be measured.
RECOMMENDATIONS
In the current scenario Indian cities are listed among the most 10 populated cities in the
world. The main reasons for these issues are excessive cut down of trees and construction of
multi storied building and the emission of hydro-fluro-carbon, nitrous oxide etc that pollute the
environment. So in order to recover from these issues the best way is to adopt changes in a way
that is sustainable to the environment. If the Indian banks are implementing the green banking
techniques in an effective manner it will act as a catalyst for protecting our environment. Now
the banks and the financial institutions have adopted the equator principles as a ground rules.
Green Banking process helps the banks for creating cost efficient automated channels to build
consciousness and awareness among its various participants like customers, business
institutions and other financial institutions. Green banking involves in the process of reducing
paper works are possible since all the transactions are done through online channels. Bank
also introduced many products like green credit cards, green mortgages etc. as part of the green
projects. As a part of their CSR activities many banks are also taken initiatives to create
awareness among the business class and the public and also states about the importance of
the going green policy. Banks are also following environmental standards for the lending and
borrowing process. The concept of sustainable banking is good for all the sectors in the public.
[23] have stressed the importance of frugal innovation for sustainability and improved
resource utilization in business. Since it acts as a reminder for the human beings who are
involved in the process that effects the economy. Ethical Banking not only involves in the
process of making the institution green but also involves in increasing the rating of the banks,
making the operation efficient and also improves the quality of the assets of the banks. Ethical
banking helps a bank to satisfy both its internal operation and also it satisfies the
responsibility of the bank towards the economy and it also increase the rating of the bank.

Bibliography
Krishna KB, Srinivas G (2014) Green Banking-An Impetus in Banking Sector. Acme
Intellects International Journal of Research in Management 7: 1-7.

Narag D (2015) Green Banking-A Study of select Banks in India. International Journal of
Management and commerce Innovations 3: 5-12.

Ahmad F, Zayed NM, Harun MA (2013) Factors behind the Adoption of Green Banking by
Bangladeshi Commercial Banks. ASA University Review 7: 241-254.

Bahl S (2012) The Role of Green Banking in Sustainable Growth. International Journal of
marketing, Financial Services and Management Research 1: 27-35.

Banking Regulation and Policy Department (2011) Policy Guidelines for Green Banking,
Bangladesh Bank, Head Office, Dhaka.

Ahuja N (2015) Green banking in India: A Review of Literature. International Journal of

Research in Management 4: 11-16.

Agrawal S (2014) Green Banking in India: An Empirical Study of Commercial Banks.

Voice of Research 2: 58-60.

Rao YGP, Menezes SJ, Dhanush R (2015) Contemplating Customers and Bankers Outlook
 on Green Banking. International Journal of Science Research and Technology 1: 75-82.

Sudhalakshmi K, Chinnadorai KM (2014) A Study on Customer’s Awareness on Green

Banking Initiatives in Selected Private sector Banks with Special Reference to
Coimbatore City. The International Journal of Business and Management 2: 160-163.

Islam SM, Das PC (2013) Green Banking Practices in Bangladesh. IOSR Journal of
Business and Management 8: 39-44.

Qureshi NZ, KulShrestha D, Tiwari SB (2012) Environmental Accounting and Reporting:

An Essential Component of Business Strategy. Asian Journal of Research in Banking
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Jha N, Bhome S (2013) A Study of Green Banking Trends in India. International Monthly
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1. www.mindtools.com

2. www.researchgate.net

3. www.coursehero.com
ANNEXURE
 QUESTIONNAIRE

AN ANALYSIS ON GREEN BANKING PRODUCT OFFERED BY BANKS

MARATHAHLLI BENGALORE
ASHARANI. M Student of PATEL INSTITUTE OF SCIENCE AND MANAGEMENT,
BELLANDUR, POST, BANGALORE,As a partial fulfilment of MBA course, I am doing my
project on know your customer in Green banking Public sector banks ,so I request you to spare
your valuable time to answer few questions in an anticipation of your kind co –operation And
give opinion about your company .I assure you that all the information provided by will be kept
strictly confidential.
BLANK QUESTIONNAIRE
1 NAME ;? ______________________________________

2 AGE (IN YEARS) ;?

A . Below 20
B. 20 - 30
C. 30 TO 40
D. 40 TO 5
E. ABOVE 50
3 GENDER ;?

A. Male

B. Female
4. QUALIFICATION ;?
A. Undergraduate
B. Graduate
C . Post Graduate
D. Any other ____________________________________
5 PROFESSION ;?
A . Private sector
B . Government
C . Business
D . Any other _________________________________________
6 . INCOME ;?
A . Below 50000
B . RS. 50000 – 100000
C . Above 100000
7.BANKS

A. HDFC

B. ICICI

C. SBI

D. CANARA BANK

E. AXIS BANK

F. OTHERS BANK __________________________________

8 . TYPE OF ACCOUNT ;?
A . Saving
B . Current
9 . FREQUENCY OF VISITS ;?
A . Monthly
B . Quarterly
C . Half yearly
D . Yearly
10 . NO OF YEARS OF BANKING
A . Below 1 Years
B . 1 – 3 Years
C . 3 – 5 Years
D . 5 Years And Above
11. ARE YOU AWARE OF GREEN BANKING SERVICES;?
A . YES
B . NO
12 . WHICH OF THE FOLLOWING GREEN BANKING PRODUCT YOU USE FROM THE
BANK ?
A . Mobile banking
B . Phone banking
C . Internet banking
D . Credit card
E . Electronic fund transfer
F . Paperless statement
H . Debit cards
13 . ACCORDING TO YOU WHICH IS MORE CONVENIENT GREEN BANKING
PRODUCT OFFERED?
A . Online bank / internet bank
B .mobile bank
C .Solar ATM
D. Green channel count
E . Green bank Credit and debit cards
14 . YOUR FREQUENCY OF USAGE OF GREEN BANKING PRODUCT BY BANK ?
A . Very frequently
B . Frequently
C . Rarely
15 . ARE YOU AWARE OF FOLLOWING GREEN BANKING PRODUCT OFFERED BY
BANK ?
S.NO Green banking Aware Unaware
products
1 Online bank
2 Mobile bank
3 Solar ATM
4 Green Channel count
5 Green bank credit /
debit cards
16 . ARE YOU SATISFIED WITH THEGREEN BANKING PRODUCT OFFEREDBY
BANK
A . YES
B . NO
17 . FOR WHAT PURPOSE OF SATISFACTION YOU ARE USING THE GREEN
BANKING PRODUCT
A . Fast transactions
B . Saves times
C . No need to visit bank
D . Cheap and best
E . All of the above
18. PLEASE INDICATE YOUR SATISFACTION LEVEL of green banking products BY
RATING.
A. 5- Highly satisfaction
B. 4- Satisfaction
C. 3- Neutral
D. 2- Dissatisfied
E. 1- Highly Dissatisfied
 S.NO Green 5 4 3 2 1
banking
products

1 Online
banking

2 Mobile
banking

3 Solar ATM

4 Green
channel count

5 Green
banking
credit & debit
19. Are you satifified with over all green banking products
A. YES
B. NO

The questions above help in the study of awareness and satisfaction of green banking product by
customers; so kindly fill in the appropriate data which can help the study to get the actual
information .
I hereby assure you that the information given will be kept confidential.
Thank you very much for taking part in the study and making my dissertation a complele
success.
ASHA RANI .M