ECO-FRIENDLY BANKING AND FINANCIAL PERFORMANCE: A STUDY OF INDIAN COMMERCIAL BANKS

Abstract

With growing awareness of environmental sustainability, green banking has emerged as a strategic approach for commercial banks to align business practices with eco-friendly initiatives. This study examines the relationship between green banking practices and the profitability of Indian commercial banks. Using an empirical approach, financial data from selected banks are analyzed to assess the impact of sustainable banking measures such as paperless operations, green loans, and energy-efficient branch management on profitability indicators like Return on Assets (ROA) and Return on Equity (ROE). The results highlight that adoption of green banking practices not only promotes environmental responsibility but also contributes positively to financial performance, suggesting that sustainability and profitability can be pursued simultaneously in the Indian banking sector.