A STUDY ON GREEN INVESTMENTS AND THEIR IMPACT ON FINANCIAL PERFORMANCE AT IDFC FIRST BANK

Cilver Bhavani¹, Mohammed Abdul Ankusha Vali², Gaddam Kushidhar³, Mohd Wajeed Ali⁴, Dr. Y. Azith⁵

doi:10.64751/

Authors

Cilver Bhavani¹, Mohammed Abdul Ankusha Vali², Gaddam Kushidhar³, Mohd Wajeed Ali⁴, Dr. Y. Azith⁵ Author

DOI:

https://doi.org/10.64751/

Keywords:

Green investments, IDFC First Bank, sustainable finance, green bonds, ESG, renewable energy financing, financial performance, NIM, ROA, sustainable banking India.

Abstract

Green investments— comprising renewable energy financing, green bonds, climate-linked loans, and ESG-integrated portfolios—have emerged as a defining strategic dimension for progressive banking institutions globally. This study investigates the composition, growth trajectory, and financial performance impact of green investment activities at IDFC First Bank Limited over the period FY 2019–20 to FY 2023–24. A mixed-methods approach combines secondary financial data from IDFC First Bank Annual Reports and sustainability disclosures with primary data from 25 banking professionals through structured questionnaires. Analysis employs ratio analysis, trend analysis, correlation, and regression techniques. Findings reveal that IDFC First Bank’s green loan book expanded from ₹6,240 crore to ₹24,870 crore—a near four-fold increase—and that green asset share is positively and significantly associated with improvements in Net Interest Margin (NIM), Return on Assets (ROA), and asset quality. The study identifies taxonomy ambiguity and staff training gaps as key implementation barriers and provides targeted recommendations to accelerate sustainable finance integration and financial performance improvement.