An Internship Report

On
“Assessing Green Banking Practices: A Case Study of
Sonali Bank Limited, Sheikhpara Bazar Branch, Jhenaidah"

Supervised by
Dr. Md. Ruhul Amin
Professor
Department of Management
Islamic University, Kushtia, Bangladesh

Submitted by
Syed Ashikur Rahman
Roll: 1705008
Session: 2017-18
Reg. No. 327
Department of Management
Islamic University, Kushtia, Bangladesh

[This Internship Report Is Submitted to the Department of Management, Islamic

University, Kushtia, Bangladesh in Partial Fulfillment of the Requirements for the
Degree of Bachelor of Business Administration]

Date of Submission: 13 June, 2023.

 Internship Report
On

“Assessing Green Banking Practices: A Case Study of Sonali Bank Limited, Sheikhpara
Bazar Branch, Jhenaidah”
 LETTER OF TRANSMITTAL

13 June, 2023
Dr. Md. Ruhul Amin
Professor,
Department of Management
Islamic University, Kushtia, Bangladesh

Subject: Submission of Internship Report on “Assessing Green Banking Practices: A Case

Study of Sonali Bank Limited, Sheikhpara Bazar Branch, Jhenaidah ".

Dear Sir,
With due respect, I would like to inform you that it is a great pleasure for me to submit the report
on “Assessing Green Banking Practices: A Case Study of Sonali Bank Limited, Sheikhpara
Bazar Branch, Jhenaidah” as an obligatory requirement for BBA program. This internship
program was very first on-the job exposure and provided me with learning experience and
knowledge in different areas. The entire experience of this internship program enabled to get an
insight into the real life situation. I have tried my level best to make a full report by analyzing all
the requirements that you have asked for.
I am very grateful to get the opportunity to make this report under your supervision. I will remain
deeply grateful if you kindly give your valuable time to go through the report and evaluate my
overall performance. I will be very happy to provide any further explanation and correction if
necessary.

Sincerely yours,

........................................
Syed Ashikur Rahman
Roll: 1705008
Session: 2017-18
Reg. No. 327
Department of Management
Islamic University, Kushtia, Bangladesh

i
 STUDENT’S DECLARATION

I am Syed Ashikur Rahman, the student of Bachelor of Business Administration (BBA) major
in Management Roll: 1705008, Session: 2017-18 and Reg. No. 327 would like to solemnly
declare that the internship report on “Assessing Green Banking Practices: A Case Study of
Sonali Bank Limited, Sheikhpara Bazar Branch, Jhenaidah” has been genuinely prepared by
me. While preparing the report, I did not violate any copyright act willingly. I am further
declaring that I did not submit this report anywhere else to get any reward or certificate.

I also assure that this report is prepared only for my academic purposes not for other
requirements.

Sincerely yours,

......................................
Syed Ashikur Rahman
Roll: 1705008
Session: 2017-18
Reg. No. 327
Department of Management
Islamic University, Kushtia, Bangladesh.

ii
 SUPERVISOR’S DECLARATION

This is to clarify that the internship report on “Assessing Green Banking Practices: A Case
Study of Sonali Bank Limited, Sheikhpara Bazar Branch, Jhenaidah” has been submitted
for the fulfillment of the degree of Bachelor of Business Administration (BBA) at Islamic
University, Kushtia, Bangladesh, carried out by Syed Ashikur Rahman the student of department
of Management under my supervision. His Roll is 1705008, Registration is 327 and Session is
2017-18. He has done all of this job according to my supervision and guidance. To the best of
my knowledge and as per his declaration, any part of this report has not been submitted for any
other degree or certificate.

He is permitted to submit the internship report and I wish him great success for his future career
path.

Best regards,

...........................................
Dr. Md. Ruhul Amin
Supervisor & Professor,
Department of Management
Islamic University, Kushtia, Bangladesh.

iii
CERTIFICATE OF THE ORGANIZATION

iv
 CERTIFICATE OF APPROVAL

I am pleased to certify that the Internship report on “Assessing Green Banking Practices: A
Case Study of Sonali Bank Limited, Sheikhpara Bazar Branch, Jhenaidah” conducted by
Syed Ashikur Rahman is bearing Roll No: 1705008 of the Department of Management has been
approved for presentation and defense/viva-voce. Under my supervision Syed Ashikur
Rahman worked with Sonali Bank Ltd. Sheikhpara Bazar Branch for the preparing of the
Internship Report.

v
I am pleased to hereby certify that the data the findings presented in the report are the authentic
work of Syed Ashikur Rahman. I strongly recommend the report presented by Syed Ashikur
Rahman for further academic recommendations and defense/viva-voce.
Syed Ashikur Rahman bears a strong moral character and a very pleasing personality. It has
indeed been a great pleasure working with him. I wish him all success in life.

Best regards,

...........................................
Dr. Md. Ruhul Amin
Supervisor & Professor,
Department of Management
Islamic University, Kushtia, Bangladesh.

ACKNOWLEDGEMENTS

First of all, I would like to express my deep gratitude to the almighty Allah who has created and
given me opportunity for fruitfully preparing this internship report.
I express my deep sense of gratitude and heartily respect to my honorable teacher and supervisor
Dr. Md. Ruhul Amin, Professor, Department of Management, Islamic University, Kushtia,
under whose cordial supervision and guidance i have completed this internship report.

vi
I am indebted to Sheikhpara Bazar Branch of Sonali Bank Limited. I provide a special thanks to
all fifty respondents for providing their support in collecting my required necessary informations.
I would like to express my special thanks to Md. Tauhidul Islam (Principal Officer) at Sonali
Bank Limited, Sheikhpara Bazar branch under whom I have completed my 3 months internship
program.
Finally I would like to express my lots of gratitude to my beloved parents and well-wishers for
their inspiration that helped me to go forward.

...........................................
(Syed Ashikur Rahman)

ABSTRACT

This study evaluates the green banking practices implemented at Sonali Bank Limited's
Sheikhpara Bazar Branch in Jhenaidah. The study assesses the bank's adoption and

vii
implementation of sustainable banking practices, such as energy efficiency, carbon footprint
reduction, sustainable financing, and environmental risk management. The findings will
contribute to knowledge on green banking in Sonali Bank Limited, highlighting the benefits,
challenges, and recommendations for enhancing these practices. The research aims to raise
awareness about sustainable banking and encourage similar initiatives in the banking sector,
ultimately promoting a more environmentally conscious industry in Bangladesh.

Table of Contents

Title Page
Letter of Transmittal i
Student’s Declaration ii
Supervisor’s Declaration iii
Certificate of the organization iv
Certificate of approval v
Acknowledgement vi
Abstract vii
Table of contents viii
viii
Chapter: 1 Introduction .................................................................................................................... 1-2
1.1 Statement of the problems ...................................................................................................... 01
1.2 Research Questions .................................................................................................................. 02
1.3 Limitation of the study ............................................................................................................. 02
Chapter: 2 Literature Review and Conceptual Framework ............................................................... 4-9
2.1 Literature review of Green Banking ........................................................................................... 04
2.2 Some Green Banking slogans of Banks ...................................................................................... 05
2.3 Green Banking Products ............................................................................................................ 05
2.4 Methods of Green Banking ........................................................................................................ 06
2.5 Importance of Green Banking …………………………………………………….………………………………………… 07
2.6 Benefits of going Green ............................................................................................................ 08
Chapter: 03 Methodology of the Study ............................................................................................ 9-13
3.1 Methodology ………………………………………………………………………………….……………….……….……….. 09
3.2 Location and Time of Research ……………………………………………………….……………………….………… 09
3.3 Methods of Data Collection and Analysis ………………………………………….…………………………….. 10-12
3.3.1 Conceptualization ………………….…………………………………………………………………….………………. 09
3.3.2 Theoretical Framework ……….…………………………………………………………………….…………………. 10
3.3.3 Sources of data ………………………………………………………………………………………….……….………… 10
3.3.4 Primary Secondary Sources ……………………………………………………………………………..……………. 11
3.3.5 Data Collection and Analysis Method …………………………………………..……………….………………. 11

Chapter: 04 Organization Overview and Green Banking Initiatives ………….…………………………….. 13-23

4.1 Green Banking Initiatives in Sonali Bank Limited …………………….………….……………………………….. 13
4.2 Green Banking objectives …………………………………………………………………….………….…………………… 14
4.3 Other banks green banking initiatives …………………………………………………….………………………….… 15
4.4 Green Banking adoption policy in SBL ……………….…………………………………….…………………………... 18
4.4.1 Management of in-house Environment ………..……………………………………..…………………….….. 18
4.4.2 Disclosure of green banking activities ……………………..……………………………..……………………… 18
4.4.3 Outlook towards green banking ………………….…………………………………………..……………..……… 19

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 4.5 Green Banking challenges in SBL …………………………………………………………………….………………….... 20
4.6 Green Banking problems in SBL ................................................................................................ 20
4.7 Implementation of Green Banking ……………..…………………………………………………….……………….… 22
4.8 Green Banking Performance at a glance …………………………………………………………….……………….. 23
Chapter: 05 Detail Findings and Analysis of the Statements: ...................................................... 24-37
Chapter: 06 Summary of Findings and Recommendation and Conclusion.................................. 38-40
6.1 Findings ................................................................................................................................... 38
6.2 Recommendation .................................................................................................................... 38
Conclusion .......................................................................................................................................... 40
References .......................................................................................................................................... 41
Appendix ....................................................................................................................................... 42-44

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 Chapter: 1 (Introduction)

Internship is not a permanent job, it is a temporary job that give real time work experience, this scope
only for university students, older adults who are changing career fields or achieving degrees may also
become interns. We may learn so many things through internship. We may learn how to be employees
in a separate or specific field and gain different real life work experience on a particular line of work. As
an intern it was a massive scope for me to work one of the reputed government commercial bank of
Bangladesh named “Sonali Bank Limited”.
Green banking is not very new around the world .The banking industry influence economic growth and
development, also in terms of quality and quantity, leading to change in the nature of economic growth.
So banking sector plays a significance role in raise environment sustainability and socially responsible
investment. Bank need to be more active in communicating the green banking concept. Green banking
avoids paper work to the optimum level and concentrate on electronic transactions such as. Use of
ATM, mobile banking, online banking for different banking transactions by the customers. Green
banking concept means saving natural resources and the environment. Less use of paper means, less
cutting of plants .Green banking focus on ecological and social factors, conservation of nature and
natural resources, this promoted environmental society friendly project, practices reduce carbon
dioxide.
The principal motive of my internship program was to survey and evaluate the green banking practices
of Sonali Bank Ltd.

1.1 Statement of the problem:

Green Banking is not a separate bank. The term Green Banking is popular world-wide now-a-days. It is
for refraining the environmental deterioration and making this planet habitable. Global warming and
climate change are now having direct impact on biodiversity, agriculture, forestry, dry land, water
resources and human health.
Bangladesh is one of the most vulnerable countries facing the impacts of climate change and therefore,
has the concern in the environmental degradation. Bangladesh is a country suffering from immense

1
social, political, economic, and environmental issues and these issues need to be addressed for overall
development of this country.
The concept of Green Banking developed in the western countries has been replicated by many
developing countries. It means the eco-friendly or environment-friendly banking and it also refers to
ethical banking or sustainable banking. Banking industry is generally not considered as polluting
industry. But it impacts the environment in terms of increasing energy consumption (lighting, air
conditioning), paper consumption. Banks and financial institutions can play a major role in global efforts
to mitigate environmental risk and make this planet a better place to live. Environmental impact of
banks is not physically related to their banking activities but with the customer’s activities. Green
banking is an umbrella term which refers to those practices and guidelines that make banks
environmentally, economically, and socially responsible.
Therefore, the banking sector can play an intermediary role between economic development and
environmental protection, for promoting environmentally sustainable and socially responsible
investment.

1.2 Research Questions:

 What are the Problems and Prospects of Green Banking Activities in Bangladesh?
 What about the picture of Green Banking?

 What is the present condition of Green Banking Activities in Bangladesh?

 How to evaluate the Green Banking performance of banks in Bangladesh?

 How to examine SBL green banking policy and implementation?
 What are the major areas of efficiency or inefficiency of the banks regarding Green Banking
initiative?

1.3 Limitations of the study:

Numerous problems have been encountered during the accomplishment of the study.
These problems may be termed as limitations of the study, specified as follows:

 Time frame for the research was very limited.

 Green banking Initiatives is a new topic in Bangladesh. So the required information is not
available of the banks.
 Implementation time of following Green Banking by all scheduled banks is not over yet. That’s
why information is not available of the banks.
 Green banking initiatives of other banks are little that’s why good comparison of bank to bank is
not possible.

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 Unavailability of written documents as required for making a comprehensive study.
 Some supportive materials were not available during the completion of my report i.e. concrete
data/statistics on Green Banking in Bangladesh, Green Banking policies of some banks etc.
 All banks are not published their green banking report. During completion of this report, essential
and up to date information was not possible to be gathered. To me, if it were possible, a full
fledge and comprehensive report could have possibly been.

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 Chapter: 02 Literature Review and Conceptual Framework

2.1 Literature review of Green Banking:

Green banking in generally refers to the efforts of the Banking sector to keep the environment green
and to minimize greenhouse effects through rationalizing their strategies, policy, decisions and activities
pertaining to banking services ,business and in-house operational activities. Green banking is seen as a
component of the global initiative from bank end to save environment.
On the other hand, Green banking is defined as promoting environment-friendly banking to stop
environmental deterioration to make this world more habitable. Green Banking mainly focuses on two
prolonged approaches. First, it takes emphasis on green revolution of internal operations of all banks,
meaning all bank should adopt proper ways of consuming renewable energy, digitalization and other
measures to minimize carbon mark from banking sectors. Secondly, all banks should adopt financing in
an environment-friendly way. The main objective of green banking is to minimize filth and give
importance to environment and society. This paper analyzes the various problems and the prospects on
the topic. Green banking practices will be useful not only for environment but also lead to cost
reductions on banking activities. It means that banking business should be conducted in such areas and
in such a manner which would help in overall reduction of external carbon-emission and internal carbon
footprint.
Atiur Rahman (2010) in his paper focused on the present monetary and credit policy of Bangladesh
Bank towards attaining broader financial enclosure. Bangladesh Bank is carry forwarding with
technology driven, innovative, environment and low cost banking approach; conveying a qualitative
change in banking, preparation of monetary policy, application of advanced banking technology, and
use of Information and Communication Technology (ICT) to extend financial services to the door step of
common people. To ensure access to financial services for all, various initiatives have been taken like
trade finance; digitalization of the financial sector; channeling liquidity into productive and supply
augmenting investments including agriculture, SMEs, Green Banking and CSR activities; expected to lead
to more broad-based inclusive growth and therefore lessen poverty; required for pushing the country
on course to the targeted vision of digital Bangladesh by 2021; the year of Golden Jubilee of their
independence.
Alice Mani (2011) indicated that as Socially Responsible Corporate Citizens (SRCC), banks have a major
role and responsibility in enhancement of governmental efforts towards substantial reduction in carbon
emission. Banks can practice and initiatives of Green Banking for sustainable development. The author
examined and compared the green lending policies by banks in India in the light of their compliance and
commitment to environment protection and environment friendly projects.
Green Banking Policy of BASIC Bank Limited, Bangladesh (2011) was go forwarded in response to
increasing consciousness over climate change, environmental degradation, need for urgent measures
for sustainable development to be addressed by some of the stakeholders in the world. Banking system
holds a unique position in an economy that can affect production, business and other economic
activities through their procedure for financing activities which would in turn contribute to protect
environment/climate from pollution. Moreover, efficiency in energy use, water consumption and waste
reduction may significantly contribute for operating cost for many of the large banks of the country.

4
Mohmed Aminul Islam (2010) showed in his report that green Banking is also significant issue in
recent times. While the banking industry is undergoing computerization, networking and offering of on-
line banking is naturally gaining momentum development in this sector.
Suresh Chandra Bihari (2011) elucidated that Green Banking includes promoting corporate social
responsibility (CSR). It starts with the aim of protecting the environment where banks consider before
financing a project whether it is environment friendly and has any implications for the future. A
company will be given a loan only when all the environmental safety standards are followed. Green
Banking can be efficiently implemented through the use of technology and policy, he emphasized.

2.2 Some Green Banking slogans of Banks:

a. Save paper, save trees,

b. Conserve energy, conserve natural resources,

c. Pay your bills online,

d. Turn off the tap when not needed,

e. Always use a cloth bag,

f. Reduce, reuse and recycle,

g. Digitize yourself,

h. Think before you press the button,

i. Everything has two sides,

j. Be paperless-kick the habit,

k. Unplug electronic devices while not in use.

2.3 Green Banking Products:

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

 Retail Banking

 Corporate & Investment Banking

 Asset Management

 Insurance

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Retail Banking:

i) Green Mortgage

ii) Green home equity loans

iii) Green commercial Building loans

iv) green car loans

v) Green cards

Corporate & Investment Banking:

i) Green products finance.

ii) Green securitization

iii) Green venture capital and private equity

iv) Green Indices

iv) Carbon commodities

Asset Management:

a. Green fiscal funds

b. Green Investment funds

c. Carbon funds

Insurance:

a. Green Insurance

b. Carbon Insurance

2.4 Methods of Green Banking:

 Go Online: Online banking is a developing concept; it helps in conservation of natural resources. It

saves paper, energy and expenditure of natural resources. It also helps customers to save money by
avoiding late payments and also save their time.
 Use of Green Checking Accounts: Customers can check their accounts on ATM. They can avail
services including online payment, debit cards and online statements.

6
 Use of Green Credit Card: Some of banks use green credit cards; by using it the banks will donate
funds to an environment friendly non-profit organization.
 Saving of Paper: Banks should purchase recycled paper products with highest post- customer
waste content. This includes monthly statements, ATM receipts, annual reports, envelopes etc.
 Mobile Banking: By using it customer can check balances, transfer funds or pay bills from the
phone. It also helps to save time and energy of the customers.
 Direct Deposits: Most employers will give employees the option tom receive their paycheck
electronically. It saves time, saves paper and lots of paper work.
 Online (Net) Banking: It means customers can perform most of their banking related functions
without visiting the banks personally. For this customer must possess an internet banking ID, a
password provided by the bank in which customer has an account. Online banking includes use of
credit cards, debit cards, online bill payment and electronic fund transfer.
 Power Saving Equipment: Bank can directly contribute to controlling climate change and as an
initial step they intend to start a campaign to replace all fused GSL bulbs, in all owned premises
offices and residential areas. Banks can also make a feasibility study to make rain water harvesting
mandatory in all the banks owned premises.
 Use of Solar and Wind Energy: Using solar and wind energy is one of the noble cause for going
green. Bangladesh Bank has become the first bank in the country to venture into generation of
green power by installing windmills for captive use.

2.5 Importance of green banking:

Because of unusual weather pattern, global warming, climate change, rising greenhouse gas, decreasing
air quality etc., Businesses should come forward to taking responsibility in protecting the environment.
Green Banking creates contribution to the alteration to resource-efficient and low carbon industries i.e.
green industry and green economy in general. Banks that were once seen only as profit motive
institutions have been adjusting to a more demanding market and a more socially aware society over
the last two decades. Environmental concern is at the edge of the green banking strategy. An increasing
number of global banks around the world are going green by launching environmental friendly initiatives
and providing innovative green products. Banking and finance is one of the areas that can do anything
about, but there's a surprising amount that you can do to ensure that your money and finances are
being managed in a green, ethical way. It is possible to know whether the selected bank operates as a
carbon neutral business. Green banking is very important in mitigating the following risks involving the
banking sector:

1) Credit Risk: Due to climate change and global warming, there have been direct as well as indirect
costs to banks. It has been observed that due to global warming, there have been extreme weather
conditions which affect the economic assets financed by the banks, thus leading to high incidence of
credit default.

2) Legal risk: Banks, like other business entities, face legal risk if they do not comply with relevant
environmental regulation. They may also face risk of direct lender liability for cleanup costs or claims for
damages in case they actually take possession of pollution causing assets.

7
3) Reputation Risk: Due to increasing environmental awareness, banks are more prone to reputation
risk, if their direct or indirect actions are viewed as socially and environmentally damaging. Reputation
risks emerge from the financing of environmentally objectionable projects.

4) Direct Risk: This risk can occur when a bank/FI exercises operational control over a borrower’s
business or in some cases where a bank/FI takes possession of contaminated land held as security. In
such cases, the bank/FI may not only lose its original advance, but may also be forced to meet
substantial clean-up costs.
5) Indirect Risk: This risk incurred by the bank/FI due to borrower’s inability to repay because of
environmental or climate change reasons. As Bangladesh strengthens enforcement of environmental
regulations and public interest groups grow, pressure increases on business to minimize their
environmental impacts. This may increase companies’ capital and operating costs in order to comply
with environmental regulations. This can have an effect on the borrower’s cash flow and consequently in
the borrower’s ability to repay. Alternatively, climate change induced events, e.g. cyclones, may impact
business activities that may result in affecting the borrower’s ability to repay.
6) Business/Industry Risk: Changing environmental conditions and/or requirements may impact the
borrower’s capacity to meet the obligation to repay. This is an indirect risk.
7) Management Risk: Poor management may result in closures and community protests that can
adversely impact the business and the borrower’s capacity to repay. This is an indirect risk.
8) Security/Collateral Risk: Risk that the bank/FI might be exposed due to poor quality of the
security/collateral, e.g. contaminated land or disposal of hazardous chemicals, in case of a default. This
is a direct risk.
9) Identifying Risks: At the time of identifying the financing, all environmental issues relevant. To the
proposed business activity needs to be determined. Of these, there may become issues that can pose
environmental risks. This need to be identified.
10) Rating Risks: Once the environmental risks are identified, these need to be evaluated. The
evaluating or rating of risks is generally done using simple methods that estimate risk as a product of the
likelihood/probability and the impact of the negative consequence.
11) Mitigating Risks: Once the risks are evaluated or rated, mitigation of these environmental risks
need to be planned in the design and/or plans of the proposed business activity. It is only after
assurance that these risks can be mitigated should the banks/FIs proceed further with the financing
process.
12) Monitoring and Controlling Risks: During the implementation, the banks/FIs should monitor
these environmental risks as a part of its credit monitoring. The outcome of this monitoring should
feedback to tighten controls of these risk.

2.6 Benefits of going Green:

Green banking offers the following benefits:

 Green banking avoids paper work and makes use of online transactions such as Internet banking,
SMS banking and ATM banking. Less paper work means less cutting of trees.

8
 Green ethical banks adopt environmental standards for lending which would benefit future
generations.
 Green banks give more importance to environmental friendly factors like ecological gains thus
interest on loan is comparatively less.
 Free electronic bill payment services.

 Online account opening form for opening green account.

 Cash back will be credited to all new customers, opening “green accounts”.

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 Chapter-03: Methodology of the Study

3.1 Methodology

Final report for the internship program will be written by following the “Exploratory Method”. Because
of having no previous knowledge on analyzing quantitative data and skills, exploratory research will be
more convenience in this case. Moreover, final report will be created on the basis of primary insight
which will be generated by me during my internship program. The report will not be prepared with a
view to providing conclusion regarding any decision; so, in that case, it will be improper for an intern to
use an Explanatory method in this situation. That is the reason why Exploratory Method is being chosen
by me.

Most of the data that I will need for this report will be collected from its primary sources. In this case,
most relevant sources will be organization’s sales report, annual report, website and brochure, customer
feedback and so on. Besides this, I will take the help of secondary data sources which will be used in a
limited way.

The internship has been conducted in a systematic procedure starting from selection of the topic to final
report preparation. The overall process procedure and of methodology followed in the study is
explained further.

3.2 Location and Time of the Research

My research has done in Sonali Bank Ltd. (Sheikhpara Bazar Branch, Jhenaidah), In Jhenaidah district
there are 15 branches of Sonali Bank Ltd. In my internship period I worked in Sheikhpara Bazar Branch of
this bank and my internship period was three months to complete this report. Although the time was
not sufficient for preparing this report but within that time I tried my best to do that.

3.3 Methods of Data Collection

3.3.1 Conceptualization

Conceptualization is the way of developing concepts about the topic and its related matter. The study
follows a procedural approach in order to get complete picture of concentration of different banks
initiatives to green banking in worldwide and in Bangladesh especially Southeast Bank limited.

10
3.3.2 Theoretical Framework

The theoretical framework is focused on the insight of the current process and techniques in related
to practice green banking to get sustainability. It emphasizes the green banking policy, green banking
strategies, green products and probable key opportunities of the products. And their inter relationship
with making the environment green.

3.3.3 Sources of Data

In order to make the report more meaningful and presentable, data is collected from many sources.
The data collection sources can be accumulated two sources.

3.3.4 Primary Sources

The “primary sources” are as follows-

i) Officers

ii) Employees

3.3.5 Secondary Sources

The “Secondary Sources” of data and information are:

Ⅰ) Annual Report (Last five years) of Sonali Bank Ltd

Ⅱ) Periodicals published by Bangladesh Bank.

Ⅲ) Various books, articles, compilations etc. regarding green banking functions, and the policies.

Ⅳ) Relevant file study as provided by the officers concerned.

3.3.6 Method of Data Collection:

1) Face-to-face conversation with the respective officers and staffs of the Branch.

2) Informal conversation with the investment clients.

3) Practical work exposures form the different desks of the four departments of the Branch covered.

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3.3.7 Data Processing and Analysis:

Collected data and information both from primary and secondary sources were analyzed. Raw data
collection from survey and edited and then classified according to the objectives. I have used some
techniques for the purpose of analysis. These are:

i) Theoretical analysis

ii) Pie Chart analysis

iii) Graphical Analysis

3.3.8 Preparation of the Report:

Following steps are associated with the preparation of this thesis:

i) Representations of the assembled data through graph

ii) Preparation of the draft report

iii) Preparation of the final report

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 Chapter: 04 Organization Overview and Green Banking Activities

4.1 Green Banking initiatives in Sonali Bank Limited :

To protect environment pollution SBL has been adopted and implemented regulatory legislation. In this
regard SBL has done the following:

 Formulation of Green Banking Policy: Giving importance of environment protection the Board
of Directors of SBL has approved a Green Banking Policy outlined in line with BRPD Circular
02/2011 of Bangladesh Bank. The policy has now been implemented in lending and internal
environment management
 Green Banking Committee: Our Risk Management Committee acts as the Green Banking
Committee. The Committee evaluates and recommends environment friendly banking policy,
strategy and activities to the Board for approval on annual basis.
 Green Banking Unit: We have a Green Banking Unit which is working under the Green Banking
Committee headed by a Deputy Managing Director.
The role, duties and responsibilities of the Unit are:
 Formulation and evaluation of environment friendly banking policy;
 Monitoring and supervision of Green Banking operations;
 Reporting Green Banking activities to the management, Green Banking
Committee and central bank on quarterly basis.

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  Separate Desk for Green Banking Activities: A green banking desk is in place under the Risk
Management Division to perform all green banking initiatives and coordinates the green finance
activities, green reporting etc.
 Budget Allocation: We are aware of environmental degradation and so are giving priority in
green finance. Our budget in this sector was BDT 5000 million in 2018 which will be 4100 million
in 2020.

(BDT in million)
Year Budget
2020 4,100.00
2019 5,420.00
2018 5,000.00
2017 2,467.00
2016 2,380.00
Source: Bangladesh Bank quarterly basis banking report-2020

 Green Financing: We have given preference to eco-friendly business activities and energy
efficient industries. Environmental infrastructure such as renewable energy project, clean water
supply project, Effluent Treatment Plant (ETP) and projects with ETP, solid & hazardous waste
disposal plant, bio-gas plant, bio-fertilizer plant, brick fields having Hybrid Hoffman Kiln (HHK)
technology are encouraged as a part of green financing practices. We are also financing in various
eco-friendly projects under re-financing scheme of Bangladesh Bank at a subsidized rate of
interest that includes:
 Loan to 333 solar panels
 Loan to 33 bio-fertilizer plants
 Loan to 45 biogas plants
 Loan to 15 HHK brick fields
 Loan to 46 Vermi composed fertilizer project
 Finance in Zig zag brick fields
 Online Banking: At present all of 1229 branches are computerized. SBL has drafted an action
plan to launch online banking service in all the branches by 2020 to comply with the Government’s
‘Digital Bangladesh’ strategy. For performing online banking, the bank has launched Real time
Online Banking activities by the real time centralized online Core Banking System (CBS) software
TEMENOS24 (T24) in 721 branches in 2018. We have installed 63 ATM booths and shared 4,800
ATM of other banks across the country.

14
  Green Marketing: It is marketing of products and services based on environmental factors or
awareness. Presently we are advertising our products/ brand, notice, circular etc. through
internet/ electronic media.
 Green Awareness and Training: Employee awareness and training on environmental and social
risk are much essential for green banking campaign. SBL staff College is continuously organizing
training courses on Green Banking to train up executives/officers. Credit departments are
assigned for developing knowledge, awareness among the consumers and clients on
environmental degradation and green banking.
 Creation of Climate Risk Fu. Nd /CSR Activities: We have created a fund as part of our CSR
activities to finance in the economic activities of the Flood, Cyclone, Ayla and Drought affected
areas at a lower rate of interest without interest.

4.2 Green Banking Objective of Sonali Bank Limited:

The core objective of green banking is to ensure customer services, finance, protection of internal
environment of management through adoption and compliance of environment friendly banking policy.

Other objectives are as follows -

 Playing direct role for protection of environmental pollution at national and international level
through adoption of environment friendly banking policy.
 Encouraging project finance in environment friendly projects and discouraging the projects
detrimental to good environment.
 Adoption of Social commitment and ethics consciousness based banking policy. Ensure the
optimum use of gas, water, electricity, office-stationery, etc.
 Increasing the use of online communication, online customer service, ATM, etc.
 Protection of forest resources through optimum use of paper and toner.
 Increase environment friendly activities in customer service, financing, internal environment of
management, i.e. growth in on-line customer service, ATM, etc. Development of environment
consciousness among bankers and customers.
 Priorities the environment friendly and energy saving technology in official procurement.
 Provide sponsorship for the development of public consciousness through encourages the
environment friendly activities.
 Publishing and communicating memo, circular, statement through web mail / web site without
normal printing.

4.3 Other Banks initiatives

1. BASIC BANK
 Formulated a Green Banking Policy of BASIC Bank limited duly approved by its Board of Directors
which has been circulated to all Branches & Divisions of Head Office.
 Issued necessary circulars to implement In-house Environmental Management by
all of its offices.

15
 Allocated considerable amount of Fund for green Banking, Green Marketing & capacity Building.
 Approved sizable Budgetary Provision for Climate Risk Fund for the Year 2013

 Approximately 500 (Five Hundred) Officers were trained till date on this subject in their foundation
training Course.
 Regularly reporting the progress of implementation of Green Banking Activities to Bangladesh Bank
on quarterly basis
 Bank has opened a separate Web Page for disclosing latest progress of its implementation on
regular basis.
 All of its Branches including Head Office are operating fully under online banking systems.
 Steps are being taken to introduce green marketing which incorporate a broad range of activities,
including a product modification, change of the production process, packaging change as well as
modifying advertising etc.

2. DBBL

 An independent Green Banking Policy & Strategy of DBBL has been established for every individual
of the Bank working in front and back office to make socially responsible behavior for the greater
interest of the country and planet as whole.
Bank views that a Green Bank is an ethical bank or a sustainable Bank. The broad objective of
green bank is to use resources with responsibility avoiding spoilage and giving priority to
environment and society.
 A separate dedicated team of Green Banking Cell has been formed consisting of 06 (six) officials
 A Green Office Guide covering set of general instructions have been circulated among the Divisions
and Branches for meticulous compliance of the instructions contained and directed towards
efficient use of resources, technologies and energy as well as reduction of wastages.
 A separate fund for an amount of Tk.5.00 million has been approved for creation of a Climate
Change Risk Fund which to be disbursed in the environmentally vulnerable areas in case of
emergency as a part of Bank's CSR expenses.
 DBBL has the largest on-line banking network and extensively using its on-line facilities which has
meantime received an extreme recognition in the country. It has brought user-friendly state-of-
threat technologies for the masses, offering variety of product supports at a minimum cost and
fostering fastest customer services through its professional expertise.
 Meantime, 5 branches of DBBL have been partially powered with SHS as an alternative source of
energy. At corporate level, DBBL has a network with valuable exporters of the country and adequate
finances have been extended especially in the garments and textile industries supported with ETP.

16
3. IFIC

 Bank will be increased Green Investment for projects installing solar energy plant, bio-gas, and/or
other renewable energy plants, bio-fertilizer plants, Effluent Treatment Plant (ETP), Hybrid Hoffman
Kiln projects for the production of brick etc. at lower interest and utmost care.
 Bank will finance the economic activities of the flood, cyclone and drought prone areas at the
regular interest rate without charging additional risk premium.
 Now days Alternative Delivery Channel (ATM, Debit / Credit Card, Online Banking, BACPS, BEFTN,
Mobile Banking) are ensuring modern banking facilities. Bank will enhance more services through
Alternative Delivery Channel.
 More Green Products will be introduced in the near future.

4. SIBL

 Finance for Farmers named as “Krishan”: This facility will be allowed to farmer for purchasing
highly productive seeds, fertilizer (green and environmentally friendly) and arranging irrigation.
 Finance for farmer for tree plantation named as “Shobujayon”: This facility will be allowed for
plantation in vacant lands that are not used for crops.
 Finance for handicraft and jute products names as “Kutir”: This facility will be allowed for
entrepreneurs for handicraft and jute products made out of natural material that will replace plastic
and polythene products which are not disposable to the environment.
 Finance for re-cycle industry named as “Rupantor”: This facility will be allowed for entrepreneurs
of recycle industry made out of waste goods such as used paper, wood, glass, tin-pots, plastic
bottles to make the environment clean and waste-management.
 Finance for solar-panel named as “Shobuj-Shokti”: This facility will be allowed for house-holds,
industries and business places for use of solar panel within the city and the rural off-grid areas to
reduce of electricity.
 Finance for industries names as “Shobuj Shilpo”: This facility will be allowed to the industries that
are having waste management plant/arrangement and those that are not involved with any
activities against environment.
 Finance for ETP plants names as “Shobuj poribesh”: This facility will be allowed for installing ETP
plants that makes the environment clean and green.
 Finance for smokeless brick making technology: This facility will be allowed to the Brick fields that
are using smokeless brick making technology (ZIG-ZAG) to replace the old traditional method to
reduce carbon emission.
 Finance for new technologies for manufacturing alternative burner/cooker and fuel: Micro finance
will be allowed to the Bio-gas plants, manufacturer of alternative cooker and fuel out of used coal
and husk to be used in lieu of fire-wood that will save the trees.

17
4.4 Green Banking Adoption policy in Sonali Bank Limited:

4.4.1 Management of In-house Environment

SBL has taken a number of initiatives for in-house environment management. The following initiatives
are taken in this regard:

* A 'Green Office Guide' has circulated to the employees for implementation;

* Measures have taken to save electricity, water and paper consumption;

* Applying eco-font in printing to reduce ink and paper.

* Use of scrap paper for drafting.

* Installation of printers having both sides printing option to lessen use of paper.

* Introduction of Real Time Gross Settlement (RTGS) in all branches

* Introduction of Bangladesh Electronic Fund Transfer Network (BEFTN) to reduce dependency

of paper based on transaction.
* Installation of online MIS software for data collection, analysis and management reporting.
* Installation of Personal Management Information System (PMIS) software for HRM.
* Introduction of online banking in all of its 1229 branches.

* Introduction of web-mail system for paperless communication

* Use of energy saving bulbs instead of normal bulbs in branches/offices of the bank.

4.4.2 Disclosure of Green Banking Activities

We have started publishing green banking and sustainability reports in our quarterly bulletin. Initiatives/
steps/projects that have taken as part of environment friendly activities are also disclosed in our
website and annual report.

18
  We have complied of the following issues required for green banking policy:

 Own green banking policy Green Banking Committee and Green Banking Unit

⮚ Budget allocation for green finance.

 Incorporation of Environmental Risk in the Credit Risk Management

 In-house environment protection initiatives

 Introduction of green guide

 Introduction of green product

 Introduction of green marketing

 Online banking

 Employee training and consumer awareness

 Green strategic plan

 Disclosure and reporting of Green Banking.

4.4.3 Outlook towards green banking:

We have given preference to eco-friendly business activities and energy efficient industries.
Environmental infrastructure such as renewable energy project, clean water supply project, Effluent
Treatment Plant (ETP) and projects with ETP, solid & hazardous waste disposal plant, bio-gas plant, bio-
fertilizer plant, brick fields having Hybrid Hoffman Kiln (HHK) technology are encouraged as a part of
green financing practices. We are also financing in various eco-friendly projects under re-financing
scheme of Bangladesh Bank at a subsidized rate of interest that includes:

 Loan to 333 solar panels

 Loan to 33 bio-fertilizer plants
 Loan to 45 biogas plants
 Loan to 15 HHK brick fields
 Loan to 46 Vermi composed fertilizer project

19
4.5 Green Banking Challenges in SBL as well as Bangladesh:
 Coordination among all the concerned authorities for a green economy.

 Speeding up proper awareness and effective capacity building. Awareness and Capacity
building is a must for the Board of Directors, competent authority, Management level.
 Immediate concentration on sectoral lending policies and procedures.

 Need for applying a quantitative approach for a more justified rating. Environmental Risk Rating
is now on the basis of the Environmental Due Diligence (EDD) as well as shifting of different
categories of industry (such as, Garments, Textiles, and Tannery) to a proper location
 It’s a new concept and customer will take time to adopt this.

 Green banking requires a technology which will highly costly.

 It requires renewable and recycling technique which is costly.

 Data protection is another challenge for the adoption of green banking.

 Bank employees need training for all this practice.

4.6 Green Banking Problems in SBL as well as Bangladesh

 Matter of Diversification: Green banks limit their business exchanges to those business
substances who qualify screening procedure done by green banks. With set number of clients,
they will have a littler base to support them. In the event that they center their credits on
specific commercial ventures, they open themselves up to being a great deal more powerless
against monetary movements.
 Startup: Numerous banks in green business are new and are in start-up face. Generally, it takes
3 to 4 years for a bank to begin making money but it does not help banks during inflation.

20
 Higher Operating Cost: Green banks require specialized talented, skills and experienced staff
to provide proper services to customers. Employees like experienced loan officers are needed
with additional background and experience in dealing with green businesses and customers.
 Reputational Risk: If banks are involved in big projects which are damaging the environment
they are likely to loss of their reputations. In the financing of ecologically and ethically
questionable projects reputation risks are involved. There are also few cases where
environmental management system has resulted in cost saving, increase in bond value.
 Credit Risk: Credit risks arise because of proposing to those clients whose organizations are
influenced by the expense of pollution, changes in environmental principles and new
requirements on productions levels. It is higher because of probability of customer default as an
effect of uncalculated costs for capital interest underway facilities, loss of market share and
third-party claims.
 Lack of awareness: There is a severe lack of awareness and concept of green banking. Most
employees of different sections/departments and of levels in different banks failed to interpret
what green banking actually means and do not realize its importance, nature of such practices
and their implications. Also, the clients/customers of many banks were found confused about
the concept and lack awareness.

 Too New an Idea to Implement Fast: The employees and management studied have reported
that they perceive green banking as a completely new concept and therefore more time is
needed to be familiar with and conversant in the concept and adopt it in practice. More time is
needed to understand the impacts of green banking and therefore to adopt it properly in
practices for a sustainable future of the economy.

 Less Priority by the Board and Management: Officers in charge of green banking activities in
a number of banks have reported that the top management is reluctant in green banking and
they do not concentrate on, even put a very low priority.

21
4.7 Implementation of Green Banking Policy by Sonali Bank- Sheikhpara Bazar
Branch

Sheikhpara Branch at a Glance

Sonali Bank Limited established its Branch in Sheikhpara, Jhenaidah on 01 June, 1979 at Molla Tower.
The Branch is banking with various types of account holders of deposit accounts as well as investment
accounts. Huge number of foreign deposit accounts is also here. Monthly Savings Scheme (MSS)
Accounts are also increasing day by day. There are some valued investment clients who want to get
specialized service. On the other hand, the other Banks situated in this area like Islami Bank, Dutch-
Bangla Bank, Brac Bank etc. are offering various products, specialized service with advanced technology
to attract the clients. In such situation, it is the time-need for our Branch to provide sufficient
manpower, to update digital programs & other logistics support in order to deliver prompt & up to date
banking service, to reduce untold pressure of voluminous works, to achieve the targeted goal & to
survive in the 21 century.
st

22
4.8 Green Banking Performance of Sheikhpara Bazar Branch:

Total number of ATM card user 250

Total number of mobile banking service User 90

Total number of clients of Sheikhpara branch 800

Amount of avg. daily transaction of Sheikhpara branch 5,00,00,000

Amount of avg. daily transaction of Sheikhpara br. By using ATM cards 10,00000

Amount of avg. daily online transaction of Sheikhpara branch 1,50,000

Amount of avg. daily transaction of Sheikhpara br. By using Mobile banking 50,000

Amount of investment on Agricultural sector 80,00,000

Chapter: 05 Detail Findings and Analysis

23
All statements parameter is:

1-Strongly disagree 2-Disagree 3-Uncertain 4-Agree 5-Strongly agree

Analysis of Statement: 01

Statement Strongly Disagree Uncertain Agree Strongly

disagree agree
Sonali Bank provides training and education to 1 4 5 17 23
the staff on environmental protection, energy
saving, and etc.

2% 8%

10%
1
2
46%
3
4
5
34%

Interpretation: The diagram demonstrates that 2% of individuals unequivocally deviate, 8% of

individual’s dissent, 10% Uncertain, 34% agree and 46% strongly agree.

24
Analysis of Statement: 02

Statement Strongly Disagree Uncertain Agree Strongly

disagree agree
Sonali Bank Limited. has environmental (green) 1 5 9 24 11
performance evaluation
Practices, (environmental sustainability measures,
energy-saving measures, and calculation of carbon
footprint).

2%
10%
22%

1
18% 2
3
4
5

48%

Interpretation: The graph shows that 2% strongly disagree, 10% deviate, 18% are uncertain, 48% agree,
and 22% strongly accept the 01 declaration.

25
Analysis of Statement: 03

Statement Strongly Disagree Uncertain Agree Strongly

disagree agree
Sonali Bank Ltd. Green banking gives more 1 3 16 24 6
importance to environmental friendly factors
like ecological gains thus interest on the loan
is comparatively less.

12% 2% 6%

1
32%
2
3

48% 4
5

Interpretation: The chart shows that 2% of people strongly disagree, 6% disagree, 32% are unsure, 48%
agree and 12% strongly agree with the statement of 03.

26
Analysis of Statement: 04

Statement Strongly Disagree Uncertain Agree Strongly

disagree agree
Sonali Bank Limited. has initiatives to reduce 0 7 8 28 7
paper usage and other wastage of materials

14% 14%

1
16% 2
3
4
5

56%

Interpretation: The chart shows that 0% of the people strongly disagree, 14% of the people disagree,
16% of the people are unsure, 56% of the people agree and 14% of the people strongly agree with the
04 statement.

27
Analysis of Statement: 05

Statement Strongly Disagree Uncertain Agree Strongly

disagree agree
Sonali Bank Ltd. has introduced energy- 1 9 12 19 9
efficient equipment, system solutions and
practices (ATMs, LED lighting, SWIFT
transfer, and etc.).

2%
18% 18%

1
2
3
4
24% 5
38%

Interpretation: The chart shows that 2% of the people strongly disagree, 18% disagree, 24% are
unsure, 38% agree and 18% strongly agree.

28
Analysis of Statement: 06

Statement Strongly Disagree Uncertain Agree Strongly

disagree agree
Sonali Bank uses e-waste management 0 5 12 23 10
practices.

10%
20%

1
24% 2
3
4
5

46%

Interpretation: The chart shows that 0% of people strongly disagree, 10% of people disagree, 24% of
people are unsure, 46% of people agree and 20% of people strongly agree with the statement of 06.

29
Analysis of Statement: 07

Statement Strongly Disagree Uncertain Agree Strongly

disagree agree
Sonali Bank has environmental friendly 0 4 10 23 13
banking practices (e-mail, intranet,
statements, online approval system, and
etc.).

8%
26%
20% 1
2
3
4
5

46%

Interpretation: The diagram demonstrates that 0% of individual unequivocally deviate, 8% dissent, 20%
are uncertain, 46% concur and 26% firmly concede to 07.

30
Analysis of Statement: 08

Statement Strongly Disagree Uncertain Agree Strongly

disagree agree
Sonali Bank provide loan to protect 1 5 7 24 13
environment and energy-saving related
projects.

2%
10%
26%
14% 1
2
3
4
5

48%

Interpretation: The diagram demonstrates that 2% of individuals unequivocally dissent, 10% of

individuals deviate, 14% of individuals are unsure, 48% of individuals concur and 26% firmly concur with
the announcement of 08.

31
Analysis of Statement: 09

Statement Strongly Disagree Uncertain Agree Strongly

disagree agree
Sonali Bank implements certain independent and 1 3 5 27 14
unique green initiatives, projects, and etc. (e.g.
tree planting).

2% 6%

28% 10%
1
2
3
4
5

54%

Interpretation: The chart shows that 2% of the people disagree strongly, 6% disagree, 10% are unsure,
54% agree and 28% strongly agree with the statement 09.

32
Analysis of Statement: 10

Statement Strongly Disagree Uncertain Agree Strongly

disagree agree
Sonali Bank promotes and facilitates 1 7 8 24 10
environmental oriented enterprises through
special grants, loans, and guidance.

2%
20% 14%

1
2
16% 3
4
5

48%

Interpretation: The diagram shows that 2% of people individually deviate, 14% of individuals
individually, 16% of people are unsure, 48% of people agree and 20% of people strongly agree with 10.

33
Analysis of Statement: 11

Statement Strongly Disagree Uncertain Agree Strongly

disagree agree
Sonali Bank utilizes social and natural 1 7 11 19 12
administration framework or some other
systems to assess all credit
recommendations.

2%
14%
24%
1
2
3
22% 4
5

38%

Interpretation: The outline demonstrates that 2% of individuals unequivocally deviate, 14% of

individual’s dissent, 22% of individuals unsure, 38% of individuals concur and 24% of individuals
emphatically concede to explanation 11.

34
Analysis of Statement: 12

Statement Strongly Disagree Uncertain Agree Strongly

disagree agree
Sonali Bank involves in setting up green 0 6 11 26 7
Branches, (energy-efficient buildings/green
buildings).

14% 12%

1
2
22%
3
4
5

52%

Interpretation: The graph demonstrates that 2% of individuals unequivocally deviate, 14% of

individual’s dissent, 22% of individuals are uncertain, 38% of individuals concur and 24% of individuals
emphatically concur with 11.

35
Analysis of Statement: 13

Statement Strongly Disagree Uncertain Agree Strongly

disagree agree
Sonali Bank Limited. has environmental 2 9 6 29 4
(green) policy

8% 4%
18%
1
2
3
12% 4
5
58%

Interpretation: The diagram demonstrates that 4% of individual firmly deviate, 18% dissent, 12% are
uncertain, 58% concur and 8% unequivocally concur.

Analysis of Statement: 14
36
 Statement Strongly Disagree Uncertain Agree Strongly
disagree agree
Sonali Bank purchases its stationeries, 4 6 9 24 7
equipment, and other items from
environmentally friendly companies (e.g.
printers, computers, and etc.).

14% 8%
12%
1
2
3
18% 4
5

48%

Interpretation: The graph demonstrates that 8% of individuals firmly deviate, 12% of individual’s
dissent, 18% of individuals are questionable, 48% of individuals concur and 14% of individuals concede
to 15 explanations.

Chapter-06:SUMMARY OF FINDINGS, RECOMMENDATIONS &

CONCLUSION

37
 6.1 Findings
1. Sonali Bank mainly invested in transport sectors, which is one of the main contributors to
pollute Dhaka City. So, the policy of green banking is not properly maintained by this bank.

2. They have very low performance in ATM service, online service, and internet services. Though
the location of the branch is covered with uneducated people and the business focused on coal,
sand, road etc. client are not habituated with these service, but bank can motivated business
people to habituate with these services.

3. Lack of available advertisement regarding green banking policy. People still don’t know about
the practices of green banking followed by SBL.

4. Information regarding green banking polices are not available in Sheikhpara branch. They do not
have green banking specialist. As a result green banking practices are not done properly.

5. Before investing in any project, they only consider on the certificate provided by “Department of
Environment of Bangladesh” and do the applicant have adequate mortgage property or not.

6. Maximum numbers of Employees of this branch are not aware about Green Banking.

6.2 Recommendations

6.2.1 The Way of to Go Ahead

Need to apply Green Banking and use ERM (Enterprise Risk Management) guideline. Bank should
increase ATM service, online service and internet services.

Apply quantitative approach for Environmental Risk Rating.

Bank should provide available advertising and arrange more seminar about green banking and
motivate clients by different way to follow the policy.

Bank should recruit green banking specialist, who give available information about green banking to
clients.

38
 This branch should properly maintain green banking policy to invest in transport sectors.

6.2.1 What can do Sonali Bank Limited Specially Sheikhpara Branch

As a bank of Bangladesh, Sonali bank have many depositors, investors and other relation with people.
Sonali bank can increase awareness of people to make seminar. They can make bound and help to their
investors or partners.

As Sheikhpara branch has RDS sector to help rural people, and obviously this is a very nice project and
will be effective if bank can run this properly. Branch can ensure green banking by this project. Branch
can make a market where can farmers sell their goods at profitable price and final buyers can have it at
reasonable price.

Sheikhpara branch can involve agribusiness; so that it will help rural people as well as the branch can
maintain green banking policy effectively.

Teen age or young people are the future of our country. They are the mostly user of technology. SBL
should have plan for them. SBL should have to offer special account for them. All technological and
updated facilities will have there and have to create awareness among them.

Conclusion

39
Benefits of online banking include less paperwork, less mail and less driving to branch offices, 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 as more customers use online banking.

Banks can do much more to help the environment than just promote online banking. A truly green bank
will reduce their carbon footprint by building more efficient branches, implementing energy efficient
operational procedures, offering transportation services for their employees, promoting sustainable
banking and increasing their lending in environment sensitive industries. Banks can also support eco-
friendly groups and raise money for local environment initiatives.

The number of green banks should be increased because the future prospect of green banking is very
bright in our country for the following reasons:

The banks are encouraged to be green by Bangladesh bank,

Recently the government made the companies mandatory to use solar plants to save
electricity.
Government has taken initiatives to digitize the banking transactions introducing online
Banking” which encourage the paperless banking.

Sonali bank needs to be made fully aware their clients of the environmental and social guidelines to
which banks worldwide are agreeing to as far as green banking is concerned, Sonali Bank Limited is
far behind their counterparts from developed countries. If SBL desire to enter global markets, it is
important that they recognize their environmental and social responsibilities.

In addition to mitigating risks, green banking opens up new markets and avenues for product
differentiation. The survival of the banking industry is inversely proportional to the level of global
warming. Therefore, for sustainable banking, Bangladesh banks should adopt green banking as a
business model without any further delay.

REFERENCES
1. www.sonalibank.com.bd

40
2. Annual Reports of Sonali Bank.

3. Services and price guides of Sonali Bank Ltd.

4. Prospectus of Sonali Bank Ltd.

5. http://www.thefinancialexpress.com.bd

6. Steiner and Shapiro, “Modern Banking”

7. H.L. Bedi & V.K. Hardikar, “Practical Banking Advances”.

8. Shekhar & Shekhar, “Banking Theory and Practice.” (18th Revised Edition)

9. Ullah, Md Maruf. "Green Banking in Bangladesh-A comparative analysis." World Review of Business
Research 3.4 (2013): 74-83. Bangladesh Bank (2017), Green Banking Report, Green Banking and CSR
Department.
10. Masukujjaman M & Aktar S 2013, „Green Banking in Bangladesh: A Commitment towards the Global
Initiatives‟, Journal of Business and Technology (Dhaka), volume VIII, issues 1 and 2, January-June and
July-December.
11. Rahman, A. 2012 ‘Green Banking and Sustainable Development: the Case of Bangladesh’, UN
Conference on Sustainable Development (Rio+20 Summit) Rio de Janeiro, Brazil, June 19, 2012.

12. Rahman, A. (2013). Green Banking and Sustainable Development: The Case of Bangladesh. The
Bangladesh Accountant, January-March 2013.

Appendix:
1.1 Questionnaire: Information Regarding Green Banking Practices

41
I am Aminul Islam student of Marketing Department Second (02) batch, Islamic University,
Kushtia. I am completing my internship in Sonali Bank Limited, Sheikhpara Bazar Branch,
Jhenaidah. I am conducting a survey on “Assessing Green Banking Practices: A Case Study
of Sonali Bank Limited, Sheikhpara Bazar Branch, Jhenaidah”. Your understanding and co-
operation for this academic exercise will be highly appreciated.

1. Name: …………...…………………………………………...

Please put tick (✔) mark:

2. Gender: □ Male □ Female

3. Age (in years): □ Below25 □ 25 to 40 □ Above 40

1-Strongly 2-Disagree 3- 4-Agree 5-Strongly agree

disagree Uncertain

4. Occupation: □ Government job □ Private job □ others

No Statement 1 2 3 4 5

1 Sonali Bank Limited. provides training and education to the

staff on environmental protection, energy saving, and etc.

2 Sonali Bank Limited. has environmental (green) performance

evaluation practices (environmental sustainability measures,

energy saving measures and calculation of carbon footprint)

3 Sonali Bank Limited. Green banking give more importance to

environmental friendly factors like ecological gains thus interest
on loan is comparatively less.

4 Sonali Bank Limited. has initiatives to reduce paper usage

and other wastage of materials

42
5 Sonali Bank Limited. has introduced energy efficient

equipment, system solutions and practices (ATMs, LED

lighting, SWIFT transfer, and etc.).

6 Sonali Bank Limited. uses e-waste management

practices.

7 Sonali Bank Limited. has environmentally friendly banking

practices (e-mail, intranet, e-statements, online approval

system, and etc.).

8 Sonali Bank Limited. provides loan to environmental

protection and energy saving related projects.

9 Sonali Bank Limited. implements certain independent and

unique green initiatives, projects, etc. (e.g., tree planting).

10 Sonali Bank Limited. promotes and facilitates environmental

oriented enterprises through special grants, loans, and

guidance.

11 Sonali Bank Limited. uses social and environmental

management system or any other mechanisms to evaluate all

credit proposals.

12 Sonali Bank Limited. involves in setting up green branches

(energy efficient buildings/green buildings).

13 Sonali Bank Limited. has environmental (green)

Policy

14 Sonali Bank Limited. purchases its stationeries, equipment

and other items from environmentally friendly companies

(e.g. printers, computers, and etc.).

43
15 Sonali Bank Limited. head office level or top management

involves in environmental protection related planning and

implementation.

44