Green Banking
Green Banking Strategy: An Innovative Model for Sustainable Financial Inclusion in Emerging Markets
Dr. Broto R. Bhardwaj, Dean, Research and Ms. Aarushi Malhotra, PH.D Scholar, Bharati Vidyapeeth University, Institute of Management and Research, New Delhi
Abstract
"Green Banking", an effort by the banks to make the industries grow green and in the process restores the natural environment. This concept of "Green Banking" will be mutually beneficial to the banks, industries and the economy by enhancing financial inclusion in the country so that more people can be included in the middle income group to make the Bottom of the Pyramid (BOP) bigger and more sustainable. 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. The paper aims to study the various models of green banking practices adopted by Indian companies to grow. The research methodology is based on case study method. The findings of the research study show that the banks which are adopting the green banking practices influence the performance of the organization. The managerial implications and discussions are also given.
Key words: corporate financial inclusion, green banking strategies, sustainability
Introduction
Moving to a prosperous low carbon economy can drive innovation, increase productivity and generate new well paid jobs. Climate change is a significant issue for India. But while the effects of climate change are increasingly a risk to the health, economy and the environment of the country, economists are also recognizing that there are financial rewards from controlling climate change and developing a low carbon economy.
Until a few years ago, most traditional banks did not practice green banking or actively seek investment opportunities in environmentally-friendly sectors or businesses. Although these companies may differ with regard to their stated motivations for increasing green
Dr. Broto R. Bhardwaj, Dean, Research and Ms. Aarushi Malhotra, PH.D Scholar, Bharati Vidyapeeth University, Institute of Management and Research, New Delhi
Abstract
"Green Banking", an effort by the banks to make the industries grow green and in the process restores the natural environment. This concept of "Green Banking" will be mutually beneficial to the banks, industries and the economy by enhancing financial inclusion in the country so that more people can be included in the middle income group to make the Bottom of the Pyramid (BOP) bigger and more sustainable. 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. The paper aims to study the various models of green banking practices adopted by Indian companies to grow. The research methodology is based on case study method. The findings of the research study show that the banks which are adopting the green banking practices influence the performance of the organization. The managerial implications and discussions are also given.
Key words: corporate financial inclusion, green banking strategies, sustainability
Introduction
Moving to a prosperous low carbon economy can drive innovation, increase productivity and generate new well paid jobs. Climate change is a significant issue for India. But while the effects of climate change are increasingly a risk to the health, economy and the environment of the country, economists are also recognizing that there are financial rewards from controlling climate change and developing a low carbon economy.
Until a few years ago, most traditional banks did not practice green banking or actively seek investment opportunities in environmentally-friendly sectors or businesses. Although these companies may differ with regard to their stated motivations for increasing green
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