GREEN BANKING

PRESENTED BY-

POONAM ILAG & PUJA REDDY

MBA 2ND SEMESTER DEPT.OF BUSINESS MANAGEMENT SINHGAD ACADEMY OF ENGINEERING

Contents

Introduction Meaning of green banking Objectives Importance Green banking-India and international SSI and green banking Green banking initiatives by banks Findings and suggestions Conclusion References

Introduction
Banking sector is one of the sources of financing investment for commercial projects. Green banking is an effort by the banks to make the industries grow green and in the process restore the natural environment Therefore, banking sector can play a crucial role in promoting environmentally sustainable and socially responsible investment. To encourage environmentally responsible investments, lending should be one of the responsibilities of the banking sector.

Meaning Of Green Banking

Industries which have already become green and which are making attempts to grow green are given priority to lending by the banks, this method of finance is called as Green Banking Green banking also includes development of various products and services that promotes environmental sustainability.

Objectives
To

study the importance of green banking for banks and economy. To create financial products and services that supports environmental benefits To study environmental and control regulations regarding green banking in India. To design proper environmental management system.

Importance
Use

of energy, paper and water are low and clean in banking sector so it is known as a eco-friendly sector. It will facilitate in improving the asset quality of the banks in future. It builds linkage between economic development and environmental protection.

Cont
1. 2. 3.

To invest inrenewable energy projects,

biodiversity conservation,
energy efficiency,

4.

investment in cleaner production.

Green Banking In India

The role of banking sector, which is on major financing sources to the Industries, is of importance. Indias is the worlds 6th largest and 2nd fastest growing country in terms of producing green house gases. It take care of polluting industries by improving the overall environment quality and conservation of life.

Green Banking Regulations

Environmental regulations in India classified into two broad categories-

1. 2.

Command and control regulations Liability law.

International Initiatives:PRODUCTS BANKS WITH REGIONS

Home Mortgage

Dutch Banks (Europe)

Commercial Building Loan

Bank of America (US)

Home equity loan

Citigroup (US)

Credit cards

Bank of America (US)

SSI And Green Banking

SSI constitute major portion of Indian industry.

Small-scale industries due to their financial constraints may not be able to install the standard equipments.

SSIs account for about 40% of industrial production and 30% of total manufacturing

Procedure to promote pollution control (for SSI) :1.

Environmental pollution status of SSI

2.

Environmental Clearance from the appropriate authorities

3.

Steps proposed for disposal of solid, liquid and gaseous wastes.

Green Banking Initiatives By Banks:

IndusInd Bank inaugurated Mumbais

first solar-powered ATM as part of its

Green Office Project campaign Hum aur Hariyali.

SBI set up windmills to generate

green power (15 MW) as a direct substitute to polluting thermal power

and implement the renewable energy

project in Tamil Nadu, Maharashtra and Gujarat for its own consumption.

Cont.
The Citizen bank Green$ense: Pays ten cents every time you make a paperless transaction in your checking account. Debit cards used by the customers are made of recycled plastic.

Findings
Environmental regulation of green banking in India expects the industries to have an eco-friendly set up where as the present set up doesnt comply with it. present set up cannot be changed instantaneously as it would create a financial burden for the industries itself. The legal frame work of green banking, has become a major concern for the Polluting industries as they have to meet the standards for their existence. Despite of all problems banks are contributing

Suggestions
Green credit cards Online and mobile banking Paper less banking Remote deposits Energy consciousness Using mass transportation system Social responsibility techniques

Conclusion

It is time now that India should take some major

steps

to

adhere

to

environment-sensitive

parameters, apart from financial projects.

In addition to mitigating risks, green banking opens

up new markets and avenues for product

differentiation.

Not only Green Banking will ensure the greening of the industries but it will also facilitate in

References

Jan Willem van Gelder, (2006), Sustainable Banking in Practice: A closer look at the nominees for the 2006 Financial Times Sustainable Banking Awards, Banktrack.

Im Trend Banking Journal No.1_2010 Green Financial Products and Services A report of the North American Task Force (NATF) of the United Nations Environment Programme Finance Initiative. August 2007.

R. N. Dash (2008) Sustainable Green Banking:The Story of Triods Bank.

Indian banks association (may 2010) Climate change and finance in India :Banking on
low carbon Indian economy published by the Climate Group.

www.dsresearch.nl

www.eco-bank.com
www.wwf.org