CUSTOMER PERSPECTIVE ON GREEN SUSTAINABLE BANKING; STRUCTURAL EQUATION MODELING ON SELECT INDIAN BANKS

Authors

  • Baljeet Kaur , Rashmi Bansal

Abstract

“Green banking means promoting environmental-friendly practices and reducing your carbon footprint
from core banking operations” (Clark Schultz (2012). To nurture environmental friendly products and
services, one of the axioms in banking industry is known as Green Banking. Green banking is a vital
phase to change the practices of client in the banking sector for achieving and promoting environment
friendly practices sustainable development, and to reduce the carbon footprint from banking
operations. This paper has been made to study level of customer awareness regarding “Green banking
services “initiative taken by various Public and Private sector banks in Delhi and NCR. The study aims
to identify the opinion and awareness of customers as regards green banking concept in public and
private sector banks. This paper is a modest attempt to divulge the awareness of green banking
initiatives, frequency of usage of green services and the perceived benefits of using green banking
services among customers of sample banks. In this study four banks data was analysed State Bank of
India (SBI), HDFC Bank Ltd ,Bank of Baroda (BOB),and ICICI Bank Ltd. situated in Delhi and
National Capital Region (NCR) to have deep insights of customer awareness regarding green banking
practices and their connect with sustainable practices.This study develops 4 a conceptual model
regarding customers and green banking model the objective of which is to study the impact of
Awareness (AS), Reliability (RE), Availability of Infrastructure (AI), Easy and Convenient (EC) on
Sustainability (customer’s perspectives). Appropriate econometric techniques were used like
descriptive, EFA, CFA, and SEM to achieve the objectives of the study. The most significant finding is found in relation factors impacting sustainability in order of their importance are Ease and Convenient (EC) followed by Awareness, Availability of Infrastructure (AI), and Reliability (RE). Thus we can clinch that the structural model is established i.e. green banking adopted by customer has significant impact on sustainability.

 

 

Published

2020-11-01

Issue

Section

Articles