DR.

BHIMRAO AMBEDKAR UNIVERSITY, AGRA

SETH PADAM CHAND JAIN INSTITUTE OF COMMERCE

BUSINESS MANAGEMENT AND ECONOMICS, KHANDARI,
AGRA
Session-2019-2022

PROJECT DISSERTATION REPORT

ON
IMPACT OF GREEN BANKING INITIATIVES ON CUSTOMER
SATISFACTION

(Submitted in the partial fulfillment of the requirement of the degree of

Bachelor of Business Administration)

Under the Guidance of Submitted by:

Dr. Ruchira Prasad Drashti Sharma
 ACKNOWLEDGEMENT

All praise is due to almighty that is beneficent. Merciful and who is ultimate source of all
knowledge, a part of which he reveals man and peace is upon all the true messengers send by time
to time to all people throughout the world for guidance and success of mankind.

On the onset I’m grateful to respected Director Sir, Prof. Brijesh Rawat who gave me this
opportunity to do this research work. I am heartily thankful to my coordinator Dr. Ruchira Prasad
who has guided and motivated me always.

I’m also thankful to Dr. Jagrati Asija, Dr. YK Sharma, Dr. Swati Mathur, Dr. Shweta Chaudhary
and Dr. Seema Singh for guiding me time to time during the completion ofmy entire course.

I’m also grateful to the staff & librarian for the support.

My sincere regards & loves to my parents and friends who helped me a lot in all my endeavors.

Drashti Sharma
 DECLARATION

I, Drashti Sharma, student of BBA 6th Semester of Dr. BhimRao Ambedkar University, Agra
declare that this research project on IMPACT OF GREEN BANKING INITIATIVES ON
CUSTOMER SATISFACTION submitted in partial fulfillment of degree of BBA is the original
work and survey conducted by me.
The information and data provided here is authentic to the best of my knowledge. This has not
being submitted to any other university for award of any degree, diploma or doctorate.

Drashti Sharma
 CERTIFICATE

This is to certify that Drashti Sharma, student of BBA from of Dr. BhimRao Ambedkar
University, Agra has submitted a dissertation project report on the topic IMPACT OF GREEN
BANKING INITIATIVES ON CUSTOMER SATISFACTION.

During whole of the project work, I found her very hardworking, sincere and disciplined towards
her work. She is able to make her points and can present it in a very effective and meaningful
manner. She has the capability to catch up the deadlines and handle the situation very effectively.

I wish her all the very best for her bright and prosperous future.

Date- Dr. Ruchira Prasad.

(Project Guide)
 CONTENT

CHAPTER-1 INTRODUCTION

CHAPTER-2 RESEARCH METHODOLOGY

CHAPTER-3 REVIEW OF LITERATURE

CHAPTER-4 DATA ANALYSIS AND INTERPRETATION

CHAPTER-5 FINDINGS

CHAPTER-6 SUGGESTION

CHAPTER-7 CONCLUSION

CHAPTER-8 ANEXURES
ABSTRACT

In this present scenario of globalization, all the sectors of world economy are facing
huge challenges to deal with the environmental problems and their related impacts in
their day today businesses. Society is becoming more and more concerned and worried
about the natural environment, It is not only the concern of the government but also of
other stakeholders like financial institutions such as banks, which are playing a
fundamental role in the development of the society. Banking sector is one of the premier
sectors in our country. It plays a very important role in the growth of Indian economy.
Like other sectors, banking sector also has its responsibility to protect environment. To
fulfill this responsibility, the banking sector has adopted the concept of Green Banking.
Going green has become a massive trend within the global banking industry. The
concept of green banking has motivated banking institutions to introduce paperless,
technology driven services while minimizing environmental impact and to perform their
role as a corporate citizen on sustainable development. It is important for banks to
understand the demand side of green initiatives since the ultimate success or failures of
such investments are influenced by perceived satisfaction of the end-user of them: the
customer. The purpose of the study is to understand overall satisfaction and awareness
of customer on Green Banking.
 CHAPTER-1

INTRODUCTION

Green banking means promoting environment friendly practices and reducing carbon footprints
from banking activities. The concern for environmental sustainability by the banks has given rise
to the concept of Green Banking. This concept will be beneficial to the banks, industries and the
economy. According to Indian Bank Association (IBA 2014), "Green bank is like a normal bank,
which consider all social and environmental/ ecological factors with an aim to protect environment
and conserve [safe] natural resources".

Institute for Development and Research in Banking Technology defines: "Green banking is an
umbrella term referring to practices and guidelines that make banks sustainable in economic,
environmental and social dimensions. Its aim to make banking processes and use of IT and physical
infrastructure as efficient and effective as possible with zero or minimal impact on environment".

Green banking practices

Green banking encompassing eco- friendly products, services and processes being used by banks.
These product and services are important for banks for reducing carbon footprints, efficient
utilization of resources and cost cutting etc. Some of the green banking products and services are
discussed below:

Green products

1- Green Deposit- Deposit made through online channel of banking are termed as green deposit.
Bank help to provide higher interest rates if customer choose to conduct their banking activities
through online.

2- Green Mortgages and loans- This facility helps the individual customer to get a lower interest
rate green loan than market rate, who is ready to purchase new energy efficient homes. This facility
also allows them to invest in energy efficient appliances.
3- Green credit and debit cards- These are like normal credit and debit cards with only difference
that rewards or points earned by green cardholders can be redeemed for contribution to eco-
friendly charitable organizations.

4- Green Certificate of Deposit- These are basically short-term money market instrument known
as green certificate of deposit. These are issued for promoting energy efficient business.

5- Green Car loans- With below market interest rate many green car loans encourage the purchase
of cars that demonstrate high fuel efficiency.

6- Green home equity loan- Reduced rate home equity loans sometimes referred to a second
mortgages can help motivate household to install residential renewable energy (Power or Thermal)
technologies.

7- Solar Powered ATMS- It is machine in banking industry that recreates the banking services in
the area with shortage of electricity. Solar ATM consists of components, which include solar
plates, battery and ATM machine.

Green Services

1- Mobile Banking- This service is most widely used green service of banking industry. This
allows customers to check balances, transfer funds or pay bills from mobile phone.

2- Net Banking - It is similar to mobile Banking. In this service, the customer can assess the
various services of banks through internet. The customer needs to have only login account and
user password.

3- E- investment services- It is basically concerned with providing online platform for investors
and traders for indulging in investment. This helps in saving time, energy and paper.

4- Electronic fund transfer- Electronic banking also known as electronic fund transfer (EFT),
uses computer and electronic technology as a substitute for cheque and other paper transaction.
EFTs are initiate through devices like cards or codes that let you, or those who authorize, access
your account. Many financial institutions use ATM or debit card and PINs for this purpose.
5- Online Savings Account- Online savings account and mobile banking is the easiest way that
you can do your part to bank green and help the environment. Green Banking includes setting up
direct deposit to receive your paycheques, receiving electronic statements from your bank and by
paying bill online.

6- Paperless Statement- Sending out bank statement by mail is a big waste of paper, signing up
for online banking at most banks includes an option for customers to receive their statement
electronically through a secure log in.

7-Online Bill Payment- Paying bills online is something of a lifestyle change, but it can be done.
Telephone bills, cable bills, utility bills, credit card payment and mortgage payments can all be
paid electronically.

Green Processes

1- Green Reward Checking Accounts: This initiative of banks is to promote paperless society.
The banks encourage customers through high bonus rates if they maintain a certain balance with
the bank and use more of electronic statements, online bill payments or using a debit or credit card.
This banking product combine higher rates along with eco-friendly living.
2-Use of Solar and Wind Energy: Using solar and wind energy is one of the decent way of going
green. State Bank of India (SBI) has become the first bank in the country to start generation of
green power by installing windmills for captive use.

3- Energy Consciousness: Developing energy consciousness, adopting effective office time

management and automation solutions and using compact fluorescent lighting (CFL) can help
banks save energy consumption effective energy management. They can also switch over to
renewable energy (solar, wind etc.) to manage their offices and ATMs.
4- Use of Recycled Paper and Waste: Banks are using recycled paper products for printing
monthly statements, brochures, ATM receipt, annual reports, newsletter, copy paper and envelopes
etc.
 CHAPTER-2

RESEARCH METHODOLOGY

STATEMENT OF THE PROBLEM

In an increasingly eco-conscious market, many businesses are finding creative ways to go green.
It may be improving their energy effectively, buying organic products, composting or just turning
off electricity at night, being green means all sorts of things to different people. The banking sector
can play an intermediary role between economic development and environmental protection, for
promoting environmentally sustainable and socially responsible investment, banking of this kind
can be termed as “Green Banking”. Green banking refers to the banking business conducted in
selected area and manner that helps the overall reduction of external carbon emission and internal
carbon footprint. To aid the reduction of external carbon emission, bank should finance green
technology and pollution reducing projects. Besides being environmentally friendly, it’s also
incredibly convenient.

OBJECTIVE OF THE STUDY

• To study the extent of awareness and adoption of green banking among customers.

• To study the customers satisfaction on green banking practices.

RESEARCH METHODOLOGY

[1] Sample size:

The sample size is limited to 80 respondents.

[2] Sampling Technique:

For the study, the judgement technique one of the random sampling Technique was used. The
researcher employed his own judgement to include samples in the sample frame.

[3] Data Collection:

Both primary and secondary data was used for the study. Primary data was collected through a
structured questionnaire and secondary data was collected from books, journals and websites.

[4] Tools for Analysis:

For analysing the collected data statistical tools such frequency table, mean, standard deviation
and Z-tests were used. Tables were used to present the results in a better understandable way.
 CHAPTER-3

REVIEW OF LITERATURE

Hearth, Santha and Hearth, HMAK in their paper entitled “Impact of Green Banking Initiatives
on Customer Satisfaction: A Conceptual Model of Customer Satisfaction on Green Banking”, the
objective/ purpose of the paper is to propose a conceptual model which perfectly depicts the
features of green banking initiatives and their relationship with overall customer satisfaction on
green banking. Their study reveals that overall customer satisfaction on green banking will be
influenced by features of green banking initiatives, which were categorised under four main titles.
And these titles propose direct relationship between customer satisfaction on security and trust
features, ease of use features, value creation features, environmental and social concern features
of green banking initiatives and customer satisfaction on green banking.

Dr G. Prakash Raj and Dr A. Pappu Rajan in their paper entitled, “A Study on the Customer
Awareness on Green Banking Initiatives”, the objective/ purpose of the study is to help SBI to
know about their customers perception about the green banking initiatives taken up by it. The study
will also help to know the satisfaction level of the customers on green banking products introduced
by SBI. The findings of the study are there is lack of awareness about Green Banking among most
of the people and hence the bank should create awareness to know the benefits of green banking
and to use internet banking and mobile banking as majority of the customers do not know to use
it. A separate cell must be formed to guide the customers to carry out the transactions in an eco-
friendly manner. Frequent meetings with customers must be planned and in order to know their
suggestions and satisfaction level. A practice of rewarding the customer must be initiated, this
would encourage the customer to participate in the program.

Jitha Thomas and Silby Linson in their paper entitled “Customer Awareness and adoption of
Green Banking in Thrissur district”, the objective/ purpose of the paper is to study the extent
awareness and adoption of green banking among the customers, to analyse the factors that affects
the use of green banking among customers and to study the association of between educational
qualification and adoption of green banking.The findings of the study are out of respondents most
of them are aware of net banking but not aware of Solar ATM, green mortgages, green car loan.
Most used green banking service is online bill payment and least used is mobile banking.
convenience is the first ranked factor influencing adoption of green banking and least ranked factor
is time and cost savings.

Dr C.Vijai in his paper entitled “A study on Customers awareness on Green banking Initiatives in
selected public and private sector banks with special reference to Cuddalore district, the objective
of the paper is to review the green banking practices of the select commercial banks in Cuddalore
district, to ascertain the perception of the customers towards green banking practices of the select
commercial bank in Cuddalore district and to suggest measures to improve the scope of green
banking of the select commercial banks based on the findings of the study.

Anu Sahi and Anurag Pahuja in their paper entitled “Changing scenario of banking: An
Empirical study on customers perspective on green banking”, the objective/ purpose of the paper
is to study awareness regarding Green Banking concept among respondents, to examine the usage
of various green banking products and services among respondents and to study the perceptual
benefits green banking initiatives to the customer. The findings of the study revealed a high level
of awareness about green banking concept and the most widely used green product found to be
plastic money (debit and credit card). The results highlighted that irrespective of the education
level of customer, there is no difference in usage of green banking services. The findings showed
three main perceptual benefits of green banking namely online transactions, safe and secure
transactions and environmental benefits.

Dipika in her paper entitled “Green Banking in India: A study of various strategies adopt by banks
for sustainable development”, the objective/purpose of the paper emphasis on the concept and
scope of green banking in India so as to make our environment human friendly and enrich our
economic productivity. This study also covers the recent developments made by Indian banks for
sustainable development and challenges faced by banks in implementations. The findings of the
research are there is utmost need to create awareness, implement and follow green banking as
much as possible in today business world of innovative technologies so as to make our
environment human friendly and enrich sustainability.

Dr Bibhu Prasad Sahoo, Mr. Amandeep Singh and Mr. Neeraj Jain in their paper entitled
“Green Banking in India: Problems and Prospects”, the objective/ purpose of the study is to analyse
the adoption of green banking products among customers with different age group ANOVA and
post hoc tests are applied for analysing the objective. The findings of research are that the young
generation is more inclined towards green banking products then middle age and senior age groups
(above 60 years. Therefore, the present study finds that there is more of need to create awareness
about green banking products adoption among the middle and senior age groups individuals than
young age people.

Jeucken (2001) focused on preparation of environmental risk and liability guidelines by banks
and financial institutions on development of protective policies and reporting for each project they
finance or invest.

Gupta (2003) focused on the emerging needs of environment sustainable businesses and products
and argued that in future, market will reward those industries or the companies, which emerge as
the efficient users of the energy and raw materials and will penalize the less efficient one.

Guo (2005) explained that commercial banks have to adopt proactive strategies for reducing
internal operation risks from environmental issues thereby realizing long term profitability by
external financing of environmentally friendly products and services.

Heim (2005) found that environment sustainable projects are quite difficult to implement as it
requires efficient management procedures, yet the benefits of environmental management system
can be phenomenal and in cases have proven cost savings, increase in bond value etc.

Sudeep (2006) elaborated the increased use of Internet banking as a part of green banking practices
and explored that Indian customers’ preference for internet banking depends on five variables
namely perceived usefulness, perceived ease of use, consumer awareness, quality of facilities and
subjective norms. The aspect of sustainable environment needs to be coordinated with all the
participants to be in win- win situation.
 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

Demographic Profile of Respondents

Variables Parameters Frequency Percentage

Less than 25 years 50 62.5

26-35 years
Age 36-45 years 18 22.5
More than 45 years 6 7.5
6 7.5
Total 80 100

Male 52 65
Gender Female 28 35

Total 80 100

Self-Employed 17 21.3
Occupation Business Man 13 16.3
Service class 9 11.2
Professionals 5 6.3
Student 31 38.7
Housewife 5 6.2
Total 80 100
(Source- Primary data)
Interpretation: Maximum number of respondents are from age group of below 25 years and are
male. The occupation of the respondents is student.

Green Banking Practices awareness among respondents.

Particulars Frequency Percentage

Aware 37 46.2
Not Aware 43 53.8

Total 80 100
(Source- Primary data)

Interpretation: Out of 80 respondents, 53.8% of the respondents are not aware of Green Banking
Practices while 46.2% are aware.
Green Banking Products Usage Among Respondents

(Source- Primary Data)

Interpretation: Approximately 48.8% of the people are not using Green Banking Products.
However, 40% are using green deposit, 25% are using green debit and credit card, 8.8% are using
solar powered ATMs and the usage of green car loans and green certificate of deposit is less.

Green Banking Services Usage Among Respondents.

(Source-Primary Data)
Interpretation: Maximum number of the respondents i.e 73.8% use mobile banking, 37.5% of the
respondents use net banking and 46.3% use for online bill payment. While 17.5% of the
respondents don’t use green services.

Reasons for using Green Banking Services

Particulars Frequency Percentage

Convenience 50 62.5%

Ease of Use 48 60%

Environment concern 21 26.3%

Time and cost saving 45 56.3%

(Source- Primary Data)

Interpretation: Maximum number of respondent uses Green Banking Services for convenience,
ease of use and for time and cost saving while environment concern factor is considered by 26.3%
of the respondents.

Frequency table showing rating of respondents on mobile banking services

Particulars/ Very low Low Average High Very high

variables
Trust in 5 9 49 18 4
technology of
mobile
banking
 Trust in 3 5 45 25 6
banks

Security from 4 19 44 13 3
fraud

Ease of use 3 3 37 30 9

Transparency 4 6 45 21 7

Reliability 2 6 47 21 6

(Source-Primary Data)

Interpretation: Average is the most selected rating by the respondents among the factors of
mobile banking services like trust in technology, trust in banks, security fraud and reliability

Frequency table showing rating of respondents on benefits of mobile banking services

Particulars/ Very low Low Average High Very high

Variables

Cost saving 8 5 43 21 8

Time saving 3 5 25 37 14

24h access 4 2 28 34 24

Physical 3 1 22 42 14
security
 Speed of 2 1 40 30 9
transaction
(Source- Primary Data)

Interpretation: Average is the most selected rating by the respondents among the benefits of
mobile banking services like cost saving, time saving, 24h access and physical security.

Z-Test

Variables Mean Standard Mean Standard Z

(male) deviation (female) Deviation value
(male) (female)
Trust in 3.28846154 0.747810939 2.96428571 0.778374811 0.252189061
Technology of
mobile
banking
Trust in 3.38461538 0.756439812 3.32142857 0.804166446 0.24356019
banks
Security from 3 0.940064322 2.89285714 0.488385512 0.9400643
fraud
Ease of use 3.55769231 0.889819836 3.60714286 0.672908703 0.11018016

Transparency 3.34615385 0.870774197 3.39285714 0.859372101 0.1292258

Reliability 3.34615385 0.786583001 3.39285714 0.617557731 0.786583

Cost saving 3.15384615 1.036385114 3.35714286 0.854161482 0.03633851

Time saving 3.75 0.860779327 3.71428571 0.880630572 0.13922067

 24hour access 3.75 0.895877223 3.78571429 0.900680015 0.8958772

Ease of use 3.65384615 0.923229453 4.07142857 0.650745256 0.9232295

Speed of 3.57692308 0.743458947 3.42857143 0.775912892 0.25654105

Transaction
(Source- Primary Data)

Interpretation: On the basis of Z test it has been found that there is no significant common factor
among male and female respondents.
 CHAPTER-5

FINDINGS

1-Out of 80 respondents, 53.8 percent of respondents are not aware of Green Banking practices
and 46.2 percent are aware. But respondents are not much aware of solar ATM, green home equity
loan, green car loan, green mortgages.
2. The main source of information about green banking is students.
3. Out of 80 respondents, 73.8 percent of respondents uses green banking services i.e mobile
banking while 17.5 percent are non-users.

4. Out of 80 respondents, most used green banking service is used is mobile banking and least used
is E- investment services.
5. Convenience is the first ranked factor influencing adoption of green banking and least ranked
factor is environment concern.
6- Z test shows that there is no common factor among male and female respondents.
 CHAPTER-6

Suggestions that can be adopted by Banks to Encourage Green Banking

1- Create awareness through the Bank’s Website

2- Disseminate information through the Press.
3- Impart education through E-learning Programs.

4- Making it a part of annual environment report.

5- Conduct energy audit.
 Chapter 7

CONCLUSION

Green banking is really a good way for people to get more awareness about global warming; each
businessman will contribute a lot to the environment and make this earth a better place to live. The
concept of "Green Banking" will be mutually beneficial to the banks, industries and the economy.
Not only "Green Banking" will ensure the greening of the industries but it will also facilitate in
improving the asset quality of the banks in future. To conclude with it can be said that awareness
regarding Green Banking among respondent is not quite high. 46.2% of the total surveyed were
aware of Green Banking concept. The awareness is quite high among male compared to females.
The majority of the respondent using mobile banking, net banking and online bill payment as it
helps in saving their time, cost, efforts etc.

Application of factor analysis revealed three main perceptual benefits of green banking namely
security, 24h access and time saving. It can be said that as far as green banking is concerned,
Indian banks are far behind their counterparts from developed countries. People in Agra are yet
to come forward for adoption of these practices as they don't have full knowledge and awareness
regarding Green Banking. Banks will have to play a vital role to make their customers educated.
 CHAPTER-8

ANNEXURES
ANNEXURE-1

BIBLIOGRAsPHY

Books

• Gupta, S.P,(2006) Statistical Methods, Sultan Chand & Sons Educational Publishers, New
Delhi.
• Kothari, C.R.(2004) Research Methodology Methods and Techniques, New Age
International (P) Ltd., Publishing New Delhi

Journals

• Dr. AL. Malliga& K. Revathy,” Customer awareness on green banking –an initiative by
private sector banks in Theni district”, EPRA International Journal of Economic and
Business Review, vol 4, issue5, May 2016.
• Neetu Sharma, Sarika K, Dr. R. Gopal, “A study on customer’s awareness on Green
Banking initiatives in selected public and private sector banks with special reference to
Mumbai” IOSR Journal of Economics and Finance .
• Jha &Bhome (2013), “A Study of Green Banking Trends In India” Vol.2 International
Monthly Refereed Journal of Research in Management & Technology.
• Gupta, H. (2003). Recent Trend of e-CRM in Commercial Banks of India. IJAIEM. 2(4),
22-32.
• Heim, G. (2005). The Role of Green Banking in Sustainable Growth. International Journal
of Marketing, Financial Services & Management Research, 1(2). 22-31.
• Jain, S. C. (2006). E-Banking, Jaipur: RBSA Publishers
• Jeucken, M. (2001). Sustainable Finance and Banking. The Finance Sector And The Future
of The Planet. Sterling: Earths can Publication.
 • Joshua, A. J. & Koshy, M. P. (2011). Usage Patterns of Electronic Banking Services by
Urban Educated Customers: Glimpses from India. Journal of Internet Banking and
Commerce.

Websites

• http://en.wikipedia.org.
• www.Shodhganga.inflibnet.ac.in. http://www.ibef.org/industry/financcial services-India.aspx.
ANNEXURE-2
Questionare