Research Article
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Impact of Green Financing and Green Banking Practices on Banks’ Environmental Performance

Year 2025, Volume: 5 Issue: 1, 103 - 113, 22.04.2025

Abstract

The banking sector remains a cornerstone of the world economy, which includes India. However, the ongoing financial crisis has put pressure on banks worldwide to operate more efficiently, and implementing green banking practices is seen as the best course of action offering them a competitive advantage and improved performance. Hence, this study aims to provide insight into how the banking industry views the connection between GBP and banks’ competitive advantage and performance. Data for this study is being gathered from 423 employees of Indian public banks, using a convenience sampling method. Using structural equation modelling, the empirical results show that green banking practices greatly improve banks’ competitive advantage and performance. Furthermore, the connection between green banking practices and banks’ performance is facilitated by competitive advantage. The implications of this work for banks and other institutions make it unique and important. To promote green banking practices and investigate opportunities for competitive advantage, the study’s findings will be helpful to academics, bankers, banking institutions,
government officials, and managers in India. Ultimately, this will improve the organizational performance of banks. As a result, this helps the nation’s economy grow sustainably and remain stable.

References

  • Afsar, B.; Cheema, S.; Javed, F. Activating employee’s pro-environmental behaviors: The role of CSR, organizational identification, and environmentally specific servant leadership. Corp. Soc. Responsib. Environ. Manag. 2020, 25, 904–911.
  • Asiaei, K., O’Connor, N. G., Barani, O., & Joshi, M. (2023). Green intellectual capital and ambidextrous green innovation: The impact on environmental performance. Business Strategy and the Environment, 32(1), 369-386.
  • Akter, N.; Siddik, A.B.; Mondal, M.S.A (2018). Sustainability Reporting on Green Financing: A Study of Listed Private Sustainability Reporting on Green Financing: A Study of Listed Private Commercial Banks in Bangladesh.
There are 3 citations in total.

Details

Primary Language English
Subjects International Finance
Journal Section 2025 5/1 (April)
Authors

Kanika Thapliyal 0009-0008-2086-1963

Chandan Gupta 0000-0001-5178-0543

Jyoti Kumari 0009-0000-7546-9741

Praveen Singh 0000-0001-7208-028X

Ercan Özen

Sanjay Taneja 0000-0002-3632-4053

Publication Date April 22, 2025
Submission Date November 19, 2024
Acceptance Date January 20, 2025
Published in Issue Year 2025 Volume: 5 Issue: 1

Cite

APA Thapliyal, K., Gupta, C., Kumari, J., Singh, P., et al. (2025). Impact of Green Financing and Green Banking Practices on Banks’ Environmental Performance. Romaya Journal, 5(1), 103-113. https://doi.org/10.5281/zenodo.15258055