INTRODUCTION:-

INTRODUCTION:
Green Banking is an umbrella term referring to practices and guidelines that make banks
sustainable in economic, environment, and social dimensions. It refers to the banking
business conducted in selected area and technique 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.
Green finance as a part of Green Banking makes great contribution to the transition to
resource-efficient and low carbon industries i.e. green industry and green economy in
general.
Adoption of green banking practices will benefit the environment in many ways. Banks can do much more to help
the environment by just promoting green banking. Use of green banking practices will result savings of energy, fuel,
paper as well as water. As for example, use of paperless ATMs, Online Banking, Mobile Banking and Tele-banking
will result savings of fuel as well as paper.

OBJECTIVES:
1. To study concept of ‘Green Banking
2. To identify the steps necessary to adopt Green Banking
3. To create awareness about green banking among the general public and consumers and bank employee.
4. To highlight the green banking practices introduced by the SBI in the country.
5. To investigate the customers’ awareness about green banking practices and their adoption level.

SCOPE:

1. To understand the knowledge level about the Green Banking among the customers of SBI.
2. To know about their customer perception about Green banking.
3. To furnish the satisfaction level of the customers on Green Banking Products introduced by SBI.

RESEARCH METHODOLOGY:

The research methodology for this seminar is incorporated with the collection of both primary and secondary data.
The study relies on data which has been collected through research journals, magazines, reports, and websites of the
respective bank and other related websites.
LIMITATIONS:

1. The research was based on secondary as well as primary data. The

primary data required to the
most important cities of the country and a commercial hub of North
East India, samples selected from the city cannot be considered as a
proper representation of the population of the country.

2. The objective of the survey was to check the

mood/perception of the bank managers as well as customers of the
bank with regard to the concept of Universal banking.

3. It doesn’t create hindrances in achieving the desired objectives.

4. For primary data, non response error cannot be ruled out.

REVIEW OF LITERATURE:-
Based in Eustis and Clermont Florida USA, First Green Bank is the first bank of its kind to promote positive
environmental and social responsibility while operating as a traditional community bank providing excellent service
to investors and clients. State Bank of India (SBI), India's largest commercial bank, took the lead in setting high
sustainability standards and completed the first step in its 'Green Banking' initiative with Shri O.P .Bhatt, Chairman,
SBI, inaugurating the bank's first wind farm project in Coimbatore.
Jaggi (2014) studies the initiative by SBI and ICICI on Green Banking. SBI has introduced a Green Channel
Counter, no queue banking, enhanced commitment towards achieving carbon neutrality, online money transfer, wind
farms. Green Products and Services initiative of ICICI Bank includes insta banking (anytime, anywhere), vehicle
finance and home finance. Moreover these banks have taken other steps for energy conservation like duplexing (two
side printing), recycling, CFLs, carpool etc.
Jha and Bhome (2013) conduct a similar survey as stated above to check and thereby create consumer awareness on
Green Banking. Conducting interviews and using specially structured questionnaires for survey they state certain
steps needed in Green Banking. Online Banking, Green Checking Accounts (ATM, Special Touch Screens), Green
loans (low rate to those who wish to buy solar equipments) for supporting environment friendly residential projects,
power saving equipments, Green Credit Cards, Paper Saving Mobile Banking are among few steps suggested by
them. Green Banking will ensure organization’s move towards sustainability.
Bahl (2012) highlighted the means to create awareness in internal as well as sub system among target groups and
import education to attain Sustainable development through Green banking and also enumerated the effective
methods for Green banking and also analyzed the strategies that helped in promoting Green banking. The data was
based upon primary and secondary data. The study revealed that the weekly green news on preferred choice as
effective mean followed to create awareness among managers and personnel as internal subsystem to attain
sustainable development through green banking. The study also depicted that event meetings, media and websites
had been rated as the most effective means of creating awareness as external subsystem among clients, subsidiaries
and general public to attain sustainable development through green banking.
Goyal & Joshi (2011) studied social and ethical issues such as social Banking, ethical Banking, green Banking and
rural banking which assist the accomplishment of sustainable development of banking. They concluded that banks
can perform as a socially and ethically familiarized organization by payment of loan only to those businesses which
have green concerns.
Weber and Remer (2011) explained Green Banking as a way of value-driven banking that has a positive social and
environmental impact at its heart, as well as its possess financial viability.
Evangelinos et al (2009) suggest that green banking refers to the development of new “green financial products”,
such as loans that finance cleaner technology, and environmental strategies, such as energy efficiency and waste
management programmes that improve banks environmental performance and reputation.
Sahoo & Nayak (2008) explored the importance of Green Banking, sited international experiences and highlighted
the important lessons for sustainable banking and development in India. The study found that there has not been
much initiative in this regard by the banks and other financial institutions in India though they play an active role in
India’s emerging economy. The study also suggested the possible policy measures and initiative to promote green
banking in India.
After reviewing the studies done in India and abroad, it is very evident that many banks are putting their best
endeavours to achieve sustainable development by initiating green practices. The response to this environmental
turbulence is tardy. This study is a modest attempt to identify the various initiatives undertaken by banks and
provides some suggestions to initiate Green banking practices in India.

COMPANY PROFILE:-
Founded in 1955, SBI is currently the largest banking and financial services company in India by means of market
capitalization, revenue and assets. State Bank of India (SBI) is an Indian multinational, public sector banking
and financial services company. It is a government-owned corporation headquartered in Mumbai, Maharashtra. The
company is ranked 216th on the Fortune Global 500 list of the world's biggest corporations as of 2017. It is the
largest bank in India with a 23% market share in assets, besides a share of one-fourth of the total loan and deposits
market.

SBI has 18,354 branches in India. In the financial year 2012–13, its revenue was 2.005 trillion (US$28 billion), out
of which domestic operations contributed to 95.35% of revenue. Similarly, domestic operations contributed to
88.37% of total profits for the same financial year. Under the Pradhan Mantri Jan Dhan Yojana of financial
inclusion launched by Government in August 2014, SBI held 11,300 camps and opened over 3 million accounts by
September, which included 2.1 million accounts in rural areas and 1.57 million accounts in urban areas.

As of 2014-15, the bank had 191 overseas offices spread over 36 countries having the largest presence in foreign
markets among Indian banks across major financial centres like Frankfurt, London, Hong Kong, New York, Sydney
and Tokyo.

The State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of
Patiala and State Bank of Travancore, and Bharatiya Mahila Bank were merged with State Bank of India with effect
from 1 April 2017.

SBI is one of the largest employers in the country with 209,567 employees as on 31 March 2017, out of which there
were 23% female employees and 3,179 (1.5%) employees with disabilities. On the same date, SBI had 37,875
Scheduled Castes (18%), 17,069 Scheduled Tribes (8.1%) and 39,709 Other Backward Classes (18.9%) employees.
The percentage of Officers, Associates and Sub-staff was 38.6%, 44.3% and 16.9% respectively on the same date.
Around 13,000 employees have joined the Bank in FY 2016-17. Each employee contributed a net profit
of 511,000 (US$7,100) during FY 2016-17.

SBI also has the following non-banking subsidiaries:

 SBI Capital Markets Ltd

 SBI Funds Management Pvt Ltd

 SBI Factors & Commercial Services Pvt Ltd

 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

 SBI DFHI Ltd

 SBI Life Insurance Company Limited

 SBI General Insurance

In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the remaining capital), to
form a joint venture life insurance company named SBI Life Insurance company Ltd. In 2004, SBI DFHI (Discount
and Finance House of India) was founded with its headquarters in Mumbai.
As of 31 March 2017, SBI group (including associate banks) has 59,291 ATMs. Since November 2017, SBI also
offers an integrated digital banking platform named YONO.

SBI had launched Green Channel Counter (GCC) facility on State Bank Day ( 01.07.2010), at
57 select branches of the Bank spread across the country to change the traditional way of
paper based banking (SBI, 2014). Customers can use the Green Channel Counter without
queues and without taking the token. The bank had also collaborated with Suzlon Energy Ltd
for the generation of wind power for selected branches by setting of windmills in Gujrat,
Tamil Nadu and Maharastra (Business Standard, 2014).The new Green Home Loan Scheme
from SBI support environmentally friendly residential projects and offer various concessions.
These loans are sanctioned for projects rated by the Indian Green Building Council (IGBC)
and offer several financial benefits - a 5 per cent concession in margin, 0.25 per cent
concession in interest rate and processing fee waiver. It has become a signatory to the
Carbon Disclosure Project [CDP], a collaboration of over 550 institutional investors with
assets under management of US $ 71 trillion, in which they undertake various
environmentally and socially sustainable initiatives throughout its branches (WWF INDIA,
2014). Export Import Bank of India (EXIM) and SBI entered into an agreement to jointly
provide long term loans up to 14 years to Spain based company Astonfield Renewable
Resources and Grupo T-Solar Global SA for building solar plant in India (Yadav & Pathak,
2013).

ANALYSIS AND INTERPRETATION:-

Adoption of various green banking practices is now up to the customers. Every small step taken today by them will
have a positive impact on the future of our planet. If they choose various alternative channels for their day to day
banking transactions instead of going to the bank branches physically, it will have positive impact on three aspects
viz. the customers themselves, the bank and the environment as a whole. The primary data collected from the
respondents and following observations have been made.

TABLE 1: Respondents heard about green practices of banks

Heard about Percent

YES 232 47.7%

 NO 254 52.3%

TOTAL 486 100%

(Source- Primary Data)

It was found from the study that more than 50 percent of the respondents have not even heard about the green
banking practices of banks. However, most of them are using various green banking practices unknowingly.
Therefore, this study reveals that people are not yet fully aware about green banking practices.

Adoption level of various Green Banking Practices:

USE OF ATM:-
Table 2: Users OF ATM

User of ATM Respondents Percent

Users 463 95.3%

Non-Users 23 4.7%

Total 486 100%

(Source- Primary Data)

Table 3: Frequency to use the ATM per month by the respondents

No. of times use ATM Respondents Percent Cumulative Percent
per month
1-3 times 190 39.1 39.1

3-5 times 141 29.0 68.1

5-10 times 71 14.6 82.7

Over 10 times 60 12.3 95.1

Do not use 24 4.9 100.0

TOTAL 486 100.0

(Source- Secondary Data)

The study also significantly found that as much as 95.3 percent of respondents use ATM. Out of them 68.1 percent
visits the ATM maximum of five times per month. 26.9 percent respondents use to visit the ATM more than 5 times
in a month.

USE OF GREEN CHANNEL COUNTERS (GCC):-

Table 4: Users of GCC

User of ATM Respondents Percent
 Users 122 25.1

Non-Users 364 74.9

Total 486 100

(Source- Primary Data)

Table 5: Use of the GCCs per month by the respondents

No. Of times use Respondents Percent Cumulative Percent
GCCs per month
1-3 times 102 83.6 83.6

3-5 times 13 10.6 94.2

5-10 times 3 2.5 96.8

Over 10 times 4 3.3 100

TOTAL 122 100.0

(Source- Secondary Data)

The newly introduced eco-friendly Green Channel Counters (GCCs) is still in their infant stage. Only 25.1 percent of
respondents use this facility. Remaining 74.9 percent respondents are either ignorant about the facility or not willing
to use this banking practice. On the other hand 84 percent of respondents use it 1 to 3 times per month whereas
remaining 16 percent respondents use it more than 3 times per month.

USE OF ONLINE BANKING:-

Table 6: Users of Online Banking

User of Online Banking Respondents Percent

Users 95 19.5

Non-Users 391 80.5

Total 486 100

(Source- Primary Data)

Table 7: Causes of not using online banking

Causes No. of Respondents Percent Cumulative Percent

Under Aged 6 1.5 1.5

Never heard about 44 11.3 12.8

Fear on Security 135 34.5 47.3

No time to open 28 7.2 54.5

Account

Satisfied with 112 28.6 83.1

 Existing Facility

Do not see Real Value 14 3.6 86.7

Too New 48 12.3 99.0

Other Reasons 4 1.0 100.0

TOTAL 391 100

(Source- Secondary Data)

The study significantly observed that only 19.5 percent of the total respondents are using online banking. Out of the
remaining 80.5 percent respondents who are not user of online banking, maximum of 34.5 percent of them do afraid
of the security problem on the online banking. Remarkable 28.6 percent respondents are satisfied with the existing
facilities provided by the bank i.e. traditional banking and ATM. Notable thing is this 11.3 percent respondents have
not yet heard about online banking and 3.6 percent respondents do not see any real value on online banking.

USE OF MOBILE BANKING:-

Table 8: Users of Mobile Banking
User of Mobile Banking Respondents Percent

Users 96 19.8

Non-Users 390 80.2

Total 486 100

(Source- Primary Data)

Only 20 percent of the total respondents use mobile banking. However, 26.5 percent respondents belonging to urban
area use this banking delivery channel against only 10.9 percent that of respondents from village areas.

Acceptance of various Green Banking Practices by the respondents/customers:

Table 9: Acceptance by Respondents

Green banking Practices are Green Banking Practices save time

Level of
Environmental friendly and cost
Acceptance
Respondents Percent Respondents Percent

Strongly agree 224 46.1 242 49.8

 Agree 168 34.6 172 35.4

No idea 84 17.3 70 14.4

Disagree 4 0.8 1 0.2

Strongly
6 1.2 1 0.2
Disagree

TOTAL 486 100 486 100

(Source- Secondary Data)

The respondents have been asked about their views regarding the impacts of various green banking practices on the
environment. It was found that 80.7 percent of respondents feel, by adopting various green banking practices they
can contribute some sorts of help towards the environment by saving paper as well as energy. Obviously, they are
agreeing that green banking practices are environment friendly. However, 17.3 percent of respondents are having no
idea about this and only 2.0 percent respondents disagreed with this statement. The respondents were also asked,
whether the adoption of various green banking can save time as well as cost for the customers or not. As much as
85.2 percent respondents agree that adopting various green banking practices instead of going to the bank physically
for banking transactions can save time and cost, and hence, they are beneficial to the customers. However, 14.4
percent respondents do not have any idea and only 0.4 percent respondents disagreed in this regard.

FINANCIAL ANALYSIS OF GREEN BANKING:

Debit card spend market share comparison YOY:

Name of Bank FY 16-17 FY 17-18

SBI 27.30% 30.60%

Bank 1 15.31% 12.82%

Bank 2 15.10% 12.09%

(Source- Secondary Data)

Card usage up by 119% YoYat Rs. 90,625 crore.

Merchant Acquiring Business:

POS Terminal (in lakhs) No. of Transactions (in crs) Value of Transactions (Rs. in
crs)
 32.14
6.34 76844

4.19
41071
17.07

2.9
20525
7.32

Dec 15 Dec 16 Dec 17 Apr to Dec15 Apr to Dec16 Apr to Dec17 Apr to Dec15 Apr -Dec16 Apr - Dec 17

This study signifies that SBI is the only Bank to have more than 6 lakh+ PoS terminals. CASA balance of Rs. 7,954
Crores as on 31.12.17, in PoS linked A/c up by 68% YoY. SBI recorded the highest monthly transaction value of Rs.
9971 Cr. in Dec 17.

SBI Buddy Wallet:

Buddy Users (Nos. in Volume of Buddy Value of Buddy

lakhs) Transactions (Nos. in crs) Transactions (Rs. in crs)

125.05 2.11
508

420
79.35
1.20

Dec 16 Dec 17 Apr to Dec 16 Apr to Dec 17 Apr to Dec 16 Apr to Dec 17

The study reveals that around 1.2cr plus users use this “SBI BUDDY WALLET”. Due this green banking facility of
SBI daily transactions through this is around 75K to 80K. On a daily basis if we analysis there is been 5K to 10K
registration on this “SBI BUDDY WALLET”.
SBI Anywhere/ Mobile Banking:

Mobile Banking Users Vol. of Transactions (Nos. Value of Transaction (Rs.

(Nos. in lakhs) in crs) in crs)

283.87 435274

19.74

420903
170.10 17.83

9.49

74.96 39474

Dec 15 Dec 16 Dec 17 Apr to Dec15 Apr to Dec16 Apr to Dec17 Apr to Dec15 Apr -Dec16 Apr - Dec 17

This facility of SBI has around 2.8crs users all over India. The number of transaction per month goes beyond 2crs
which shows that customers are utilizing this green banking practices.

SBI Online/ Internet Banking:

 INB Users (Nos. in Lakhs) Vol. of INB Transactions Value of INB Transactions
(Nos. in crs) (Rs. in crs)

116 70,27,250

457.25
110
56,17,199
355.13
95 41,62,760
294.49

Dec 15 Dec 16 Dec 17 Apr to Dec15 Apr to Dec16 Apr to Dec17 Apr to Dec15 Apr -Dec16 Apr-Dec17

SBI Online is the 5th most popular online global financial site. There has been around 4.57crs users using this facility
for various types of transaction and payments. The volume of transactions during the FY 18 is 116 crs and it
increases as this facility is used by every customer on daily basis.

SBI PAY:

SBI Pay Active Users (Nos.

in lakhs)
 Vol. of Transactions (Nos. in Value of Transactions (Rs.
Crs) in Crs)

17824

109
7673
15.67
77

5567
50
3.41
1.78

June 17 Sept17 Dec 17 Apr to June 17 July to Sept17 Oct to Dec17 Apr-June 17 July- Sept17 Oct - Dec17

There are around 1.09crs users on SBI PAY/BHIM/USSD and which goes on increasing till date. Due this green
banking facility the average daily transactions is around 17.03lakhs per day. Around 37000 people register
themselves as users in this facilities provided by SBI on daily basis. This shows that there is continuous increase in
daily transactions through green banking facility.

Conclusion:-
FINDINGS:
From the above study it is found out that green banking clearly has direct and positive impact on sustainability.
Because doing these practices customers can save energy, fuel, paper, water, time as well as money. Significantly it
results reducing the carbon footprint from their banking practices. Green banking practices are very convenient, easy
and cost effective for the bank customers. It saves the customers trips to the bank. They need not to go to the bank
for banking transaction; hence they can save time as well as money. It is a type of anytime-anywhere banking. Green
banking practices are also beneficial to the banks because they cause less postage cost and also reduce the workload
of the bank personnel. So far as green banking is concerned Indian banks are far behind their counterparts from
developed countries. The common people are yet to come forward to adhere these practice due to lack of awareness.
Therefore, banks must literate their customers about the using procedures of green banking practices and adopt all
strategies to save earth.

SUGGESTIONS:
It is recommended that there should be sufficient publications both from the bankers’ side and also from the
government side to aware about the environmental impacts of various green banking practices. Seminar and
workshops regarding this aspect should be organized and public meetings are to be arranged by the banks to make
people familiar about the using procedure of e-banking practices.

IT Professional are interested to utilize more Green banking services compared to the other domain. Green banks
should promote environmental consciousness, social responsibility and good governance by themselves. They
should ensure efficiency in using space, water, energy, paper, etc., in its offices and branches. SBI should adopt go
green mantra by this method bank could reduce the carbon footprint from the environment. Customers are not
required to fill slip in the bank for the withdrawal of money rather they could use ATM facility. Awareness through
Constructing a Website and Spread the News. Educate through the Bank’s Intranet and Public Website. The
organization should always train and retrain their staff to ensure that they keep up with the dynamism of information
technology. Implied from the above, foreign direct investment will increase, productive capacity will be doubled.
This will improve standard of living of citizenry and further engender economic growth and development. Set up
outlets to promote green business. Impart education through E-learning Programmes. To improve the usage of E-
banking is required in adult generation. Technically banks gives confidence to the customer that e-banking is
privacy, safe and secure all the time. Customer perceived that fees charged by the bank every transaction. So Bank
should be transparent. There is lack of preparedness both on part of banks and customers in the adoption of new
technological changes. Bank should take step ahead towards basic problem fueling dissatisfaction have been
addressed in the investigation. Benefit provided by the bank should educate the customers are most responsible in e-
banking.

CONCLUSION:
For effective green banking, the RBI and the Indian government should play a proactive role and formulate a green
policy guidelines and financial incentives. The survival of the banking industry is inversely proportional to the level
of global warming. Therefore, for sustainable banking, Indian bank should adopt green banking as a business model
without any further delay making it a part of annual environment. For effective green banking, the RBI and the
Indian government should play a proactive role and formulate a green policy guidelines and financial incentives. The
survival of the banking industry is inversely proportional to the level of global warming. Therefore, SBI initiative
towards Green banking shows the sustainability.

Green banks are at startup mode in India. They should expand the use of environmental information in their business
operations, credit extension and investment decisions. This will help in improving their environmental performance
and creating long term values for their business. The adoption of Green Banking will not only enhances the image of
the bank but also protects the environment and makes the overall growth sustainable. Green banking can be an
avenue to reduce pollution and save the environment. The banking and financial sector should be made to work for
sustainable development. As far as green banking in concerned, India’s banks are running behind time and there is
need to motivate the banks so that they can promote Green Banking for the sustainable growth of the nation.
Sustainability reporting is also one area which is facing paucity in Indian banking sector, more formal frameworks
and clear policies are required for reporting in a sustainable way. There is a big problem amongst the bankers that
many people are not well trained and equipped with the modern automated system as a result of which the results are
not as we are looking for. Hence training and development of relevant skills within bank employees are important to
speed up the reforms. RBI has to play more proactive role by passing the mandates, rules, regulations to tackle this
critical issue of climate change.