GREEN BANKING: CORPORATE SOCIAL

RESPONSIBILITY- CASE STUDY OF INDIAN BANKS (STATE BANK OF INDIA)

By:Aashika Jain

India is likely leave behind UK, Japan and

Germany and will know as third largest

domestic banking market in the world by

2040 after china and the US.

-by ‘Price Waterhouse

Coopers’(Banking in 2050)

Introduction

As socially responsible corporate citizens

(SRCC), Indian banks have a major role and

responsibility in supplementing government

efforts towards substantial reduction in

carbon emission.

CSR involves the management toward good

work for community.

CSR has been identified as a tool to

contribute Indian banking bottom line and

also ensure its long term sustainability.

Main types of CSR practices are:

1. Rural Development

2. Woman Empowerment

3. Poverty Eradication

4. Community Welfare

5. Vocational Training

6. Education and Employment

7. Green Banking.

CSR MODEL IN INDIAN BANKING

Green banking is like a normal bank, which

considers all the social and environmental

factors, it is also called as a ethical bank.

Ethical banks have started with the aim of

protecting the environment. And it is

controlled by same authorities as what a

traditional bank do.

Green Banking

"Green banking means promoting environmental friendly practices and reducing your carbon footprints from your banking activities."

DEFINITION

To study concept and need of ‘Green Banking’.

To identify the steps necessary to adopt Green Banking.

To identify various issues and controversies related to green banking with reference to Indian banks (State Bank of India).

OBJECTIVES OF THE STUDY

Credit risk

Legal risk

Reputation risk

IMPORTANCE OF GREEN BANKING

Green banking coverage includes:

Carbon credit business Green Banking Financial

Products Green mortgage Social Responsibility Services Carbon Footprint Reduction

◦ Green loan◦ Green credit cards◦ Green checking accounts◦ Energy Consciousness◦ Green Buildings◦ Mobile banking◦ Online banking◦ Using Mass Transportation

System

Cost of traditional banking:

1. Environment degradation.

2. Wastage of paper and trees.

3. More man power is require handling the paper work.

4. Delay in getting transaction’s information.

5. Inconvenient in terms of long hours of waiting at

bank counters.

6. Time consuming process.

SOCIAL COST BENEFIT ANALYSIS

Benefits of green banking

◦ Rationalization of paper use.

◦ Helps in controlling Deforestation.

◦ Time and Money is saved.

◦ Faster services to the customers.

◦ Generate Clean and hygienic environment.

◦ development of human capital of country.

Sustainable

Development

Leads to the

Financial Institutions and Banks

By

Green Banking or

CSR

RBI SBI ICICI Bank Induslnd Bank Union Bank of India Yes Bank IDBI Bank

GROWTH OF GREEN BANKING IN INDIA

Basically Green banking avoids as much paper work as possible and rely on online/ electronic transactions for processing so that we get green credit cards and green mortgages. Less paperwork means less cutting of trees.

It also involves creating awareness to banking business people about environmental and social responsibility enabling them to do an environmental friendly business practice.

Green Ethical banks adopt and implement environmental standards for lending, which is really a proactive idea that would enable eco-friendly business practices which would benefit our future generations.

When we are awarded with a loan, the interest of that loan is comparatively less with normal banks because green banks give more importance to environmental friendly factors - ecological gains.

Green Banking as a concept is a proactive and smart way of thinking with a vision for future sustainability.

FINDINGS

Conclusion

Adopt green bankingReduce Paper Work

Create Environment AwarenessSave the Earth