A STUDY ON CONSUMER AWARENESS AND ADOPTION OF

GREEN BANKING PRACTISES

WITH SPECIAL REFERENCE TO KOTTAYAM DISTRICT

Project Report submitted to Mahatma Gandhi University in partial fulfillment of

the requirements for the award of the Degree of

MASTER OF COMMERCE

By
LAKSHMI T S
Reg. No. 190011028549

Under the supervision and guidance of

BIJI JOSE
Assistant Professor of Commerce

POST GRADUATE DEPARTMENT OF COMMERCE

GOVERNMENT COLLEGE KOTTAYAM
2019-2021
 DECLARATION

I Lakshmi T S, student of Post Graduate Department of Commerce, Government

college do hereby declare that the project entitled “A STUDY ON CONSUMER AWARENESS

AND ADOPTION OF GREEN BANKING PRACTISES WITH SPECIAL REFERENCE TO

KOTTAYAM DISTRICT” is a bona fide record of work done by me under the guidance of

BIJI JOSE Assistant Professor, Post Graduate Department of Commerce, Government

College Kottayam and is submitted to Mahatma Gandhi university in Partial fulfilment of the

requirement for the award of the Degree of Master of Commerce and is not submitted to any

university or institute for the award of any other professional Degree/Diploma.

Place: Kottayam LAKSHMI T S

Date: Reg. No. 190011028549
 POST GRADUATE DEPARTMENT OF COMMERCE
GOVERNMENT COLLEGE KOTTAYAM

CERTIFICATE

This is to certify that the project work entitled “A STUDY ON CONSUMER

AWARENESS AND ADOPTION OF GREEN BANKING PRACTISES WITH SPECIAL

REFERENCE TO KOTTAYAM DISTRICT” is a bona fide record of the work done by

LAKSHMI T S (Reg. No. 190011028549) in the partial fulfilment of the requirement for

the award of degree of Master of Commerce by Mahatma Gandhi University, Kottayam, during

the year 2019-2021, under my supervision and guidance.

Place: Kottayam
Date:

Supervising Teacher:

Biji Jose
Assistant Professor of Commerce
Government College, Kottayam Countersigned by:

Madhulal P R
Head. Post Graduate Department of Commerce
Government College Kottayam
 ACKNOWLEDGEMENTS

I proudly utilize this opportunity to express my respect and deep sense of gratitude towards my
project guide, Biji Jose, Assistant Professor, Post Graduate Department of Commerce,
Government College, Kottayam, for his valuable guidance at every stage of preparation of this
project. His cooperation and word of sound advice will remain fresh in my memory and will
continue to give me inspiration for years to come.

I use this opportunity to thank Madhulal P R, Head of the Post Graduate Department of
Commerce, Government College, Kottayam who encouraged me to complete this dissertation
project in the stipulated time. I am grateful to the principal and all administrative staffs
including librarian, Government College, Kottayam for providing necessary facilities for
completing the project.

I express my gratitude to all teachers, Post Graduate Department of Commerce, for intending
their support and help during project work.

I acknowledge, my gratitude to my all friends in Government College, Kottayam who helped

me a lot to complete this project work.

Above all, I express my thanks to God Almighty without those unbound grace and help,
anything would have been possible.

Place : Kottayam LAKSHMI T S

Date : Reg no: 190011028549
 CONTENTS

CHAPTER NUMBER TITLE PAGE NUMBER

LIST OF TABLE

LIST OF FIGURE

I INTRODUCTION 2–7

II AN OVERVIEW: GREEN 9 - 18
BANKING
III DATA ANALYSIS AND 20 - 45
INTERPRETATION

1V FINDINGS , 47 - 50
SUGGESTIONS AND
CONCLUSION

BIBLIOGRAPHY 52 – 54

APPENDIX 56 - 60
 LIST OF TABLE

TABLE NUMBER DESCRIPTION PAGE NUMBER

3.1 Gender of respondents 21
3.2 Age of the respondents 22

3.3 Educational Qualification 23

3.4 Occupation of respondents 24

3.5 Income wise classification 25

3.6 Area of residence 26

3.7 Bank in which account belongs to 27

3.8 Type of bank account 28

3.9 Period of relationship with bank 29

3.10 Awareness level of green banking products 30

3.11 Preference regarding checking account 31

balance at ATM counter
3.12 Preference of making cash deposit at bank 32
3.13 Usage of green banking services 33

3.14 Most used green banking service 34

3.15 Factors influencing adoption of green banking 36

services
3.16 Source of information about green banking 38
products
3.17 Bankers role in providing information 39
regarding green banking practises
3.18 Level of efficiency regarding the usage of 40
online banking
3.19 Best way of implementing green banking 41
3.20 Whether green banking is completely 43
environment friendly or not
3.21 Facing problems while using green banking 44
services
3.22 Preference of green banking products over 45
non green banking products
 LIST OF FIGURE

FIGURE NUMBER DESCRIPTION PAGE NUMBER

3.1 Gender of respondents 21

3.2 Age of the respondents 22

3.3 Educational Qualification 23
3.4 Occupation of respondents 24

3.5 Income wise classification 25

3.6 Area of residence 26

3.7 Bank in which account belongs to 27

3.8 Type of bank account 28

3.9 Period of relationship with bank 29

3.10 Awareness level of green banking products 30

3.11 Preference regarding checking account 31

balance at ATM counter
3.12 Preference of making cash deposit at bank 32
3.13 Usage of green banking services 33

3.14 Most used green banking service 34

3.15 Factors influencing adoption of green banking 36

services
3.16 Source of information about green banking 38
products
3.17 Bankers role in providing information 39
regarding green banking practises
3.18 Level of efficiency regarding the usage of 40
online banking
3.19 Best way of implementing green banking 41

3.20 Whether green banking is completely 43

environment friendly or not
3.21 Facing problems while using green banking 44
services
3.22 Preference of green banking products over 45
non green banking products
 CHAPTER 1

INTRODUCTION

1
 INTRODUCTION

The concern for environmental sustainability by the banks has given rise to concept of Green
Banking. The concept of “Green Banking” will be mutually beneficial to the banks, industries
and the economy. Green financing is the part of green banking. Green banking means
promoting environmental friendly practices and reducing your carbon footprints from your
banking activities. Green banking aims at improving the operations and technology along with
making the clients habits environment friendly in the banking business. It is like normal
banking along with the consideration for social as well as environmental factors for protecting
the environment. It is the way of conducting the banking business along with considering the
social and environmental impacts of its activities.
The beginning of 21st century brought tremendous changes in banking activities. Due to this
change bank has shifted toward the adoption of innovative banking products. The use of ATM,
internet banking, online transfer, debit card and credit card became popular. Innovative product
is time saving, create less cost to the bank as well as to the customer. Innovative banking has
different channel to provide service to the customer but the main source is internet which create
less cost to the customer and it also saves the time and creates less pollution to the environment.
Environment sustainability can be defined by taking a decision which reduces business’s
negative impact on environment. But it’s not simply to reduce the impact on environment but
it means to develop a process which provides a sustainable growth in future.
Green banking means promoting environmental friendly practices and reducing carbon
footprint from banking activities. It is like a normal bank, which considers all the social and
environmental/ecological factors with an aim to protect the environment and conserve natural
resources. It is also called as an ethical bank or a sustainable bank. They are controlled by the
same authorities but with an additional agenda toward taking care of the Earth's
environment/habitats/resources.
Green banking means using all of the banks’ resources with responsibility and care, avoiding
waste and giving priority to choices that take sustainability into account. It is also known as
environmental friendly banking, ethical banking or sustainable banking. According to the
Indian Banks’ Association, the green bank is like a normal bank, which considers all the social
and environmental factors with an aim to protect the environment and conserve natural
resources. For banking professionals, green banking involves the tenets of sustainability,
ethical lending, conservation, and energy efficiency. Green banking products include automatic
teller machines, mobile banking, remote deposit, green money market accounts, green checking
accounts, online banking, green credit cards, green loans, green savings accounts, green
mortgages, green channel counters, green homes, etc.
Today every business organization and corporation is adopting “go green” concept because of
the increasing friendly attitude of the society towards the environment. Banks play a critical
role in the economic development of the nations by providing various socio-economic activities
like job creation, wealth generation, Poverty eradication, entrepreneurial activity etc. Besides
these activities, banks are introducing the practices of green banking in order to protect the
environment and to reduce carbon emissions.

2
It is meant for promoting environmental- friendly practices and reducing your carbon footprint
from our banking activities. Green banking will be mutually beneficial to the consumers, banks,
industries and the economy. For consumers this shift towards green banking means that more
deposit and loan products will be available through online and mobile banking. It also means
better deposit rates on CDs, money accounts and savings accounts. Green banks should also
have lower fees and give rate reductions on loan going towards energy-efficient projects. This
is banking beyond pure profit. Another important aspect of green banking is the involvement
and outreach from the individual banks to their local community.
Green Banking therefore covers two aspects. The first one being judicious use of all resources,
energy and reducing carbon footprints and second being encouraging and financing only
environment friendly investment. So Green Banking is not only about making sustainable use
of resources but also about environment friendly dispensation of credit. A proper scrutiny of
all projects that are financed in terms of environment is another major element of Green
Banking.
The concept of Green Banking emerged in 2009 with coming of the first Green Bank based in
Mt. Dora, Florida, United States. The Institute for Development and Research in Banking and
Technology established by RBI defines Green Banking as: “Green Banking is an umbrella
term referring to practices and guidelines that make banks sustainable in economic,
environment, and social dimensions. It aims to make banking processes and the use of IT and
physical infrastructure as efficient and effective as possible, with zero or minimal impact on
the environment.”

DEFINITION

According to RBI (IDRBT, 2013), green banking is to make internal bank processes, physical
infrastructure and Information Technology effective towards environment by reducing its
negative impact on the environment to the minimum level.

Institute for Development and Research in Banking Technology defines Green Banking as
Green Banking is “an umbrella term referring to practices and guidelines that make banks
sustainable in economic, environmental, and social dimensions. It aims to make banking
processes and the use of IT and physical infrastructure as efficient and effective as possible,
with zero or minimal impact on the environment”.

3
 STATEMENT OF THE PROBLEM
In an increasingly eco-conscious market, many businesses are finding creative ways to go
green. It may be improving their energy efficiency, buying organic products, composting or
just turning off electricity at night, being green means all sorts of things to different people.
The banking sector can play an intermediary role between economic development and
environmental protection, for promoting environmentally sustainable and socially responsible
investment, banking of this kind can be termed as “Green Banking”. Green Banking refers to
the banking business conducted in selected area and manner that helps the overall reduction of
external carbon emission and internal carbon footprint. To aid the reduction of external carbon
emission, bank should finance green technology and pollution reducing projects. Besides being
environmentally friendly, it’s also incredibly convenient. As socially responsible corporate
citizens, Indian banks occupy a major role and responsibility in supplementing government
efforts towards substantial reduction in carbon emission. Green banking is one such measure
introduced by banking organizations in India. A successful implementation of green banking
is possible only with the support and involvement of customers. As a result, enterprises with
the technology and vision to provide products and services that address environmental issues
will enjoy a competitive edge. Currently in India, the concept of green banking is catching up
and banks are actively looking for ways to portray themselves as a Green Bank. Hence,
understanding the perceptions, awareness and usage pattern of green banking by the customers
becomes much relevant.

SCOPE OF THE STUDY

Nowadays the banking activities become fully automated. Through internet, customer can do
their banking activities, from their home itself, giving better customer satisfaction. The project
analyses the customer awareness and adoption of green banking practises among the
consumers. By this, the banker can identify in which dimension they lack and need to improve
services to their customer in order to improve customer satisfaction. In fact the perception and
expectation of the customers have undergone a vast change with the availability of retail
banking services at their door steps with the help of technology and expects to complete all
their banking transactions from a single place.
The study identifies the products and service usage in terms of customer convenience pattern.
The reason for choosing this topic is to analysis customer awareness towards usage of different
green banking services provided by public and private sector banks and to suggest strategies
for using these services in order to make it more competitive and customer friendly. The study
will help private and public sector banks to reorient their marketing strategies for better reach
among customer in order to complete with it rivalry with technology as its core competence.
The scope of the study is confined to the people of Kottayam Taluk in Kottayam district due to
the lack of time availability.

4
 OBJECTIVES
1. To study the awareness of green banking practises among the customers.
2. To analyse the adoption of green banking practises by customers
3. To analyse the factors that affects the use of green banking among customers.
4. To understand the most preferred way of implementing green banking

METHODOLOGY OF THE STUDY

Sample Design:
Sample size: The sample size is limited to 60 respondents
Study area: The study has been conducted in Kottayam Taluk to ascertain the awareness levels
of customers and adoption towards Green Banking.
Collection of data: The data has been collected from primary as well as secondary sources.
The primary data has been collected with the help of a self structured questionnaire. As the
entire population of Kottayam could not be taken into consideration, a convenience sample of
60 respondents was taken. The secondary data have been collected from websites of various
banks and journals and books related to banking.
Statistical tools applied: The following statistical tools have been used for the purpose of
analyzing data collected.
1. Percentage analysis
2. Henry garret ranking method
3. Weighted average analysis
Tables were used to present the results in a better understandable way.

LIMITATIONS OF THE STUDY

 The geographical scope of the study is limited to Kottayam Taluk.
 The sample size is confined to 60.
 Selected banks were taken for the study.
 Study conducted based on the perspective and awareness level of respondents
 Reliability of primary data
 Sampling technics used
 Restrictions due to Covid19 pandemic

5
 LITERATURE REVIEW

Jha & Bhome (2013) [6], “A study of Green Banking trends in India” International Monthly
Refereed Journal of Research In Management & Technology, Vol. 2. In their article conduct a
similar survey as stated above to check and thereby create consumer awareness on Green
Banking. Conducting interviews and using specially structured questionnaires for survey they
state certain steps needed in Green Banking. Online Banking, Green Checking Accounts
(ATM, Special Touch Screens), Green loans (low rate to those who wish to buy solar
equipment’s) for supporting environment friendly residential projects, power saving
equipment’s, Green Credit Cards, Paper Saving Mobile Banking are among few steps
suggested by them. Green Banking will ensure organization’s move towards sustainability.
Sharma, Gopal et al. (2014), in their articles entitled “A study the level of consumer awareness
of Green Banking initiative in India with special reference to Mumbai”. From the primary
survey they conducted they find that surprisingly even those people who are using online
facilities provided by their banks nearly three fourth of them are unaware of the term Green
Banking. They find that among those who are aware of Green Banking term consider it mainly
related to online bill payment and cash deposit system. Other Green Banking aspects like Green
CDs, solar powered ATM, bonds for environment protection are among few of which
consumers are not aware of. They also attempt to analyze the gender based difference in
awareness of green initiatives by bank specially E-Statements, Net Banking and Green loans.
Using Chi-Square test for hypothesis testing they arrive at a result that both males and females
have the same level of awareness with respect to Green Banking. The researcher’s state that
the major obstacle in Green Banking is the technical issues involved followed by lack of
education.
Jaggi (2014), in his studies the initiative by SBI and ICICI on Green Banking. SBI has
introduced a Green Channel Counter, no queue banking, enhanced commitment towards
achieving carbon neutrality, online money transfer, wind farms. Green Products and Services
initiative of ICICI Bank includes in state banking (anytime, anywhere), vehicle finance and
home finance. Moreover these banks have taken other steps for energy conservation like
duplexing (two side printing), recycling, CFLs, carpool etc.
Nath, Nayak & Goel (2014) [5], “Green Banking Practices - A Review”, Vol. 2 (4), In their
study the green rating standard given by RBI, the World Bank’s environmental and social
norms and the initiative taken by bank in adopting green practices. They also list strategies for
adopting Green Banking. Green Rating Standard is known as Green Coin Rating. Under this
banks are evaluated on the basis of carbon emissions and amount of recycling activities. World
Bank has formed environmental and social norms for financial institution. These norms provide
ways to reduce environmental impact. Banks are required to do Environmental Impact
Assessment, Annual Reporting and adopt sustainable technology. The researchers study and
list the initiative taken in respect of environment by different banks in India. If the Indian banks
want to achieve some position in global economy then they have to act as good corporate
citizens.

6
K. Sudhalakshmi and K.M. Chinnadurai (2014), A study on customers awareness on green
banking initiatives in selected private sector banks with special reference to Coimbatore city.
The international journal of business & management, vol.2, in their study present the status of
Indian Banks in respect of Green Banking and state that though goes green mantra is essential
for emerging economies like India but significant efforts have not been taken. Banks are
required to include their green aspect in the lending principle

Ragupathi.M and Sujatha.S (2015), Green banking and Environment sustainability by

commercial banks in India, Green banking initiatives of commercial banks in India studied the
way to go green through green banking. According to this paper, earlier bank was not aware
about the concept green banking. But now a day’s banks are playing very important role in
environment sustainability program.

According to Amitabh Mishra, B R kumar and DharamBirsingh, (2013), on his study A

study of Gaps in Service Quality at a leading private sector commercial bank in greater
Noida,account holders are more dissatisfied with the service quality dimension.This study
helps to know the weak area of a banks service where immediate steps are necessary.
The Role of Green Banking in sustainable Growth, (2012), this study explained that the
survival of the banking industry is inversely proportional to the level of global warming.
According to Vinay Kumar Nagu (2012) it is evident that primary benefits of E- CRM in
the banking sector is the reduced cost of operation, locks in target prices, and increases in
customer loyalty.

CHAPTERISATION OF THE STUDY

The study is presented in the following manner:

 Chapter 1 – Introduction: It includes introduction, statement of the problem, scope of

the study, objectives of the study, methodology used for the study, limitations, and
review of literature
 Chapter 2 – Overview: It consists of meaning, history, benefits, Characteristics,
Methods, various green banking products and services, advantages and disadvantages
of green banking, and SWOT analysis of green banking.
 Chapter 3 – Data analysis and interpretation: Deals with the analysis of primary
data
 Chapter 4 –Findings, suggestions, and Conclusion: Sum up the study by stating the
findings, suggestions, and conclusion.

7
 CHAPTER 2

GREEN BANKING : AN OVERVIEW

8
GREEN BANKING

The banking industry influences economic growth and development, both in terms of quality
and quantity, leading to a change in the nature of economic growth. There for banking sector
plays an important role in promoting environmentally sustainable and socially responsible
investment. Banks may not be the polluters themselves, but they usually have a banking
relationship with some companies or investments or projects that are polluters are cold be in
future. Banks can utilize green banking as an opportunity to gain advantage in the market by
creating a difference in their strategy making process. Also, banks need to be more active in
communicating the green banking concept and its associated benefits to the consumers. It was
also observed that green banking consciousness is high in the higher levels of management in
the banks and this consciousness reduces with the lower levels of management and least with
the employees who are in day to day direct touch with the customers. Thus, the banks must
focus on promoting the consciousness and benefits of the green banking to the employees who
are in direct touch with the customers. Green banking is a pro-active way of energy
conservation and environment protection. The prime benefit of the green banking approach is
the protection of the natural resources and the environment. Green banking avoids paper work
to the optimum level and focuses on electronic transactions like use of ATM, mobile banking,
online banking etc for various banking transactions by the customers. Electronic transaction
not only aids towards sustainability but also provides convenience to the customers as well as
to the banks. Less paperwork means less cutting of trees. For implementing eco friendly
business, banks should adopt environmental standards of lending as it improves the asset
quality of the banks. This activity of the bank also has a very significant influence on the
environmental performance of its clients.
Green banking means promoting environmental friendly practices and reducing carbon
footprint from banking activities. It is like a normal bank, which considers all the social and
environmental/ecological factors with an aim to protect the environment and conserve natural
resources. It is also called as an ethical bank or a sustainable bank. They are controlled by the
same authorities but with an additional agenda toward taking care of the Earth's
environment/habitats/resources. It aims to make banking processes and the use of IT and
physical infrastructure as efficient and effective as possible, with zero or minimal impact on
the environment. It is the environment-friendly banking practices that promote their customers
to reduce the carbon footprint through their banking activities.

9
History of Green banking

Green Banking is any form of banking from that the country and nation gets environmentally
benefits. An orthodox bank becomes a green bank by directing its core operations toward the
betterment of environment. The banking sector can play an intermediary role between
economic development and environment protection by promoting environmentally sustainable
and socially responsible investment. The concept of green banking was developed in the
western countries. Green Banking was formally started in 2003 with a view to protecting the
environment. Then the Equator Principles (EPs) were launched and were initially adopted by
some leading global banks, such as Citigroup Inc, The Royal Bank of Scotland, Westpac
Banking Corporation. In March 2009, Congressman Chris Van Hollen of USA introduced a
Green Bank Act with the aim of establishing a green bank under the ownership of the US
government. After introduce the Green Banking initial decision was to minimize the paper use
in banking works because to make all kinds of papers need to cutting trees as raw materials (its
minimize the green forestation) and for this reason naturally its reduce the Oxygen and increase
the carbon-dioxide in airspace/ globe .There are two ways of green banking practices. One is
in-house green banking; another is practice by the bankers in their business area. Creating clean
and hygienic banking environment, green building, reforestation, online banking, waste
management, installation of solar panel on the rooftop of the bank and using high mileage
vehicles, reducing sound pollution, using webcam for video conferencing instead of physical
meetings, online statements, emailing documents are included in the inhouse Green Banking.
Financing the green projects like Biogas Plant, Solar/Renewable Energy Plant, Bio-fertilizer
Plant, Effluent Treatment Plant (ETP), Projects having ETP etc, working on specific green
projects, voluntary activities of banks are major practices by the bankers in their business areas.
Green banking undertakes proactive measures to protect environment and to address climate
change challenges while financing along with efficient use of renewable, non-renewable,
human and natural resources.

10
Ideal Benefits of Green Banking
1. Basically Ethical (Green) banking avoids as much paper work as possible and rely on
online/electronic transactions for processing so that you get green credit cards and green
mortgages. Less paperwork means less cutting of trees.
2. Creating awareness to business people about environmental and social responsibility
enabling them to do a environmental friendly business practice.
3. Green (Ethical) banks adopt and implement environmental standards for lending, which
benefit our future generations.
4. When you are awarded with a loan, the interest of that loan is comparatively less with
normal banks because ethical banks give more importance to environmental friendly
factors - ecological gains. Natural resources conservation is also one of the underlying
principles in a green bank while assessing capital/operating loans to
extracting/industrial business sector.
5. Green banks gives more importance to environmental friendly factors like ecological
gains thus interest on loan is comparatively less.
6. Free electronic bill payment services.
7. Online account opening form for opening green account.
8. Cash back will be credited to all new customers, opening “green accounts”.
9. It reduces cost and energy, thus saving money and increasing GDP of a country.
10. It changes the mental faculties of the officials and customers, in line with green
sensibilities.
11. Green banking focuses on social safety and security through changing the negative
impacts of the society.
12. In financing, it always gives priority to investments / loans which consider risk factors
regarding environmental conditions.
13. It always cares for sustainable and green growth in industrialisation and for social
purposes.
14. It creates a congenial atmosphere inside and outside the bank.

11
Methods in Green Banking.

i. GO ONLINE: Online banking is a developing concept; it helps in conservation of

natural resources. It saves paper, energy and expenditure of natural resources. It also
help customers to save money by avoiding late payments and also save their time

ii. USE OF GREEN CHECKING ACCOUNTS: Customers can check their accounts
on ATM , can make use of UPI like gpay, phonepay etc, and also banking applications.
They can avail services including online payment, debit cards and online statements.

iii. USE OF GREEN CREDIT CARD: Some of banks use green credit cards; by using it
the banks will donate funds to an environment friendly non-profit organization

iv. SAVING OF PAPER: Banks should purchase recycled paper products with highest
post customer waste content. This includes monthly statements, ATM receipts, annual
reports, envelopes etc

v. MOBILE BANKING: By using it customer can check balances, transfer funds or

pay bills from the phone. It also helps to save time and energy of the customers

vi. DIRECT PEPOSITS: Most employers will give employees the option to receive their
paycheck electronically. It saves time, saves paper and lots of paper work

vii. ONLINE (NET) BANKING: It means customers can perform most of their banking
related functions without visiting the banks personally. For this customer must possess
an internet banking ID, a password provided by the bank in which customer has an
account. Online banking includes use of credit cards, debit cards, online bill payment
and electronic fund transfer.

12
GREEN BANKING PRODUCTS AND SERVICES

 Retail banking
 Corporate investment banking
 Asset management
 Insurance

A. Retail Banking

a. Green Mortgages
This facility helps the individual customer to get a lower interest rate
green loan than market rate, who is ready to purchase new energy efficient
homes. This facility also allows them to invest in energy efficient appliances.

b. Green Home Equity Loans

Reduced rate home equity loans sometimes referred to a second
mortgages can help motivate households to install residential renewable energy
(Power or thermal), technologies.

c. Green Commercial Building Loans

Green banking initiatives like solar ATM, banking environment policy,
green loans, are not familiar among the customers. Environment protection is
the duty of every citizen, including Attractive loans designs and arrangements
have started to emerge for green commercial building characterized by lower
energy consumption reduced waste and less pollution than traditional building.

d. Green Car Loans

With below market interest rate many green car loans encourage the
purchase of cars that demonstrate high fuel efficiency.

e. Green Cards
A broad family of green products includes debit and credit cards linked
to environmental activities. This green cards offered by large credit card
companies offer to make non-government organizations donations equal to
approximately One-half percent of every purchase, balance transfer or cash
advance made by the card owner.

B. Corporate Investment banking

a. Green Project finance

13
 A number of banks are now ready to accept large scale renewable energy
project. For this they have to create service divisions also to help those
companies who under take large scale renewable energy system.

b. Green Securitization
A variety of environmental securitization techniques have begun to
emerge, including forest bond, eco securitization pilot program and green
mortgage-backed securities.

c. Green Venture Capital and Private Equity

While issuing finance through capital market, we can see that, high
consideration paid to environmental issues. In particular banks can play a vital
role in assisting with IPO for clean technology providers, carbon credit
developers, and other firms marketing environmental product and services.

d. Green Index
Some banks have currently developed index that fluctuate as future
environmental opportunities and challenges

C. Asset Management
a. Green Fiscal Fund
By purchasing shares in a green fund or investing money in a green
bank, citizens are exempted from paying capital gain tax and receive a discount
on income tax.

b. Green Investment Fund

Sustainable investment funds have evolved through three generations,
where the complexity of assessing investment eligibility rises at easy level.

c. Carbon Fund
Collaboration between multilateral development banks and private
financial institutions has led to the emergence of a variety of carbon funds to
help finance GHC emission reduction projects to curb climate changes

14
D. Insurance
a. Green Insurance
This type of insurance typically encompasses two product areas
• Insurance products with differentiate insurance premium on the
basis of environmentally related characteristic
• Those specially tailored for clean technology and emission
reducing activities
b. Carbon insurance
There are many risks inherent in emission reduction transaction, as well
as low carbon project assessment and development activities. In response some
financial institutions now offer insurance product to manage carbon credit price
volatility.

OTHER GREEN BANKING SERVICES

1. Online Savings Account:-

Online savings account and mobile banking is the easiest way that you can do your part to bank
green and help the environment. Green banking includes setting up direct deposit to receive
your pay cheques, receiving electronic statements from your bank and by paying bills online.
All of these steps can drastically reduce the amount of paper produced by your bank. Online
banking and mobile banking are also highly effective ways to keep track of your finances and
to avoid late payment fees.

2. Paperless Statement:-
Sending out bank statement by mail is a big waste of paper. Signing up for online banking at
most banks includes an option for customers to receive their statements electronically through
a secure log in. copies of banking records and statements can then be stored electronically
instead of in a filing cabinet. Receiving statements electronically also reduces the chance of
identity theft.

3. Use Direct Deposit:-

Most employers will give employees the option to receive their pay cheque electronically. Not
only does this speed up the availability of your money and save you a trip to the bank, it saves
paper, lots of paper work etc.

15
4. Online bill payments:-
Paying bills online is something of a lifestyle change, but it can be done. Telephone bills, cable
bills, utility bills, credit card payments and mortgage payments can all be paid electronically.
In fact, some online banking customers have thrown away their cheque books and completely
converted to online payments. Not only is the recordkeeping much easier, but again massive
amounts of paper is saved.

5. Net banking:-
Online banking is when customers perform most of their banking related functions without
visiting the bank, personally. To do so customers must possess an internet banking ID and a
password provided by the bank in which the individual customer has an account.

6. Credit and Debit Cards:-

Credit card and debit card can be used while making the payment of various expenses without
caring the money.

7. Electronic fund transfer:-

Electronic banking, also known as electronic fund transfer (EFT), uses computer and electronic
technology as a substitute for cheques and other paper transactions. EFTs is initiated through
devices like cards or codes that let you, or those you authorize, access your account. Many
financial institutions use ATM or debit cards and personal identification numbers (PINs) for
this purpose.

8. Mobile banking:-
Mobile banking is a term used for performing balance checks, account transactions, payments,
credit applications etc. Via a mobile device such as mobile phone or personal digital assistant
(PDA)

16
Challenges of Green Banking
Green banks while adopting green banking face following challenges:
I. DIVERSIFICATION PROBLEMS: Green banks restrict their business
transactions to those business entities who qualify screening process done by
green banks. With limited number of customers they will have a smaller base
to support them
II. STARTUP FACE: Many banks in green business are very new and are in
startup face, generally it takes 3 to 4 years for a bank to start making money
thus it does not help banks during recession.
III. HIGHER OPERATING COST: Green banks require talented, experienced
staff to provide proper services to customers. Experienced loan officers are
needed with additional experience in dealing with green businesses and
customers
IV. REPUTATIONAL RISK: If banks are involved in those projects which are
damaging the environment they are prone to loss of their reputations. There
are also few cases where environmental management system has resulted in
cost saving, increase in bond value.
V. CREDIT RISK: Credit risks arise due to lending to those customers whose
businesses are affected by the cost of pollution, changes in environmental
regulations and new requirements on emissions levels. It is higher due to
probability of customer default as a result of uncalculated expenses for capital
investment in production facilities, loss of market share and third party claims.

GREEN BANKING - A SWOT ANALYSIS

An analysis of Strengths Weaknesses Opportunities Threats (SWOT) on Green Banking:

1. Strengths
 Green banking practise save time of customers as well as bank also.
 It reduces the cost of bank operation and cost to the customer too.
 Transition can be done any time and at any place.
 By financing in solar energy and wind energy program the bank is reducing carbon
footprint from the environment.

2. Weaknesses
 Quality customer practise password in green banking practise take time.
 Lack of knowledge among the employee has been noticed

17
  There are some geographical barriers for the implementations of green banking
practices.
 All banks are not coming equally for the practice of green banking.
 Problem of security is always with green banking practises.

3. Opportunities
 People are becoming more computer literates so it’s easy to start green banking
practice and grape the customer towards the activities.
 Most of the customers are using online banking services nowadays as they are ought
to do so during the curfew or lockdown period at the time of Covid Pandemic
Situation on the year 2020.
 Mobile banking and internet banking is increasing day by day so it’s a time to spread
the green banking practises.

4. Threats
 A new concept and customer will take time to adopt this.
 Green banking requires a technology which is high costly.
 It requires renewable and recycling technique which is costly.
 Data protection is another challenging factor for the adoption of green banking
 Bank employees need training for all these practises.

Conclusion
Green Banking has become a buzz word in today’s banking world. For going green products,
electronic compliances, motor vehicles etc. for eco-friendly atmosphere. Automation and
improved in house green activities, required and rigorous training program for top/mid/lower
level management and at the same time clients as well need to be carried on. Board/Competent
authority should be aware and updated of the current green banking activities and development.
Green Banking now is not only limited to awareness but also in practice. It is now expected
from all scheduled banks that they would not only allocate budget for green finance, green
event or green projects under CSR activities, green marketing and capacity building but ensure
the efficient utilization of budget allocation. Finally we can say that going green should be the
motto of all commercial banks.

18
 CHAPTER 3

DATA

ANALYSIS AND INTERPRETATION

19
Data analysis and interpretation is the process of assigning meaning to the collected
information and determining the conclusions, significance, and implications of the
findings.
The study conducted with the objective of finding out customer’s awareness and their
adoption towards green banking initiatives by several banks. For the purpose of analysis,
60 people are taken at a sample size. The primary data required for the study were
collected from the people through questionnaire. The collected data should be analysed in
order to reach a conclusion. Tools used for data analysis and interpretation are:

1. Percentage analysis

2. Mean score analysis

The data analysed using above statistical techniques are presented using tables, bar
diagrams and pie diagrams, the analysis of data collected using questionnaire were
presented in the rest of the chapter.

Scheme of analysis

Rank Analysis: Rank is allotted to different variables by calculating frequency and means
scores of the responses collected. Rank 1 is given to highest score and proceeded
accordingly. In order to know the satisfaction level of Green Banking applicants and to
understand the most preferred way of implementing Green banking rank analysis has
been carried out.

The scheme of analysis is the mean score analysis followed in this study for analysing the
ranked data. For calculating the mean score, for 5 rank scales, 5 weightage is given to
first rank, 4 weightage is given to 2nd rank. 3 weightage to 3rd rank, 2 weightage to 4th
rank and 1 weightage to 5th rank. Then composite weightage for each different factors
will be computed along with its mean score and those factors will be finally ranked based
on their mean scores.

20
Gender of Respondents

The gender of the sample respondents was analyzed to know whether females or males
constitute the majority of customers of green banking. It was analyzed using percentage
analysis. Analysis is shown in Table 3.1 and figure 3.1

Table 3.1

Gender of the respondents

Gender Number of Respondents Percentage

Male 35 58.3
Female 23 38.4
Prefer not to say 2 3.3
Total 60 100
Source: Primary data

Figure 3.1

Classification based on gender

5%

male
38% female
57%
prefer not to say

From the table 3.1 and figure 3.1, it can be ascertained that among 60 respondents, 58.3%
constitutes male respondents(35), 38.4% constitutes female respondents(23) and 3.3% of
them prefer not to say their gender . Hence, it is concluded that majority of the consumers
of green banking initiatives are male.

21
Age of the Respondents

Sample size are classified based on age, and the details are shown below in the table 3.2
and figure 3.2.

Table 3.2

Age of the respondents

Age Number of Respondents Percentage
Below 20 1 1.6
21-40 46 76.7
41-50 9 15
Above 50 4 6.7
Total 60 100
Source:Primary data

Figure 3.2

Classification based on age

7% 1%

15%

77%

Below 20 21-40 41-60 Above 60

From the table 3.2, and figure 3.2 it is inferred that among 60 respondents, 76.7% of the
respondents are aged between 21-40 years, 15% of the respondents are aged between 41-
50 years and 6.7% of the respondents belongs to the age category of Above 60 years.
Majority of the respondents belong to the age category of 21-40 years.

22
Educational Qualification

Based on education, respondents are classified into four groups, details are given below in
table 3.3 and figure 3.3.

Table 3.3

Educational Qualification

Qualification Number of respondents Percentage

SSLC 5 8
HSC 3 5
Graduation 32 53
Post-graduation and above 19 32
Others 1 2
Total 60 100

Source: Primary data

Figure 3.3

Classification based on education

2% 8%
5% SSLC
32% HSC
Graduation
Post graduation and above

53% Others

From the table 3.3 and figure 3.3 it is found that the number of respondents with
qualification schooling (SSLC+HSC) and graduate are 13% & 53% and post graduate and
others are 32% & 2% respectively. Majority of the respondents are graduates.

23
Occupation of respondents

Respondents are classified into five groups based on their occupation; details are given
below in table 3.4 and figure 3.4

Table 3.4

Occupation
Occupation Number of respondents Percentage
Student 12 20
Private sector 8 13
Public sector 28 47
Business/Professional 4 7
Retired 8 13
Total 60 100
Source: Primary data

Figure 3.4

Classification based on occupation

13% Student
7% Private sector
47% Public sector
20% Business/Professional
Retired
13%

From the table 4.4 and figure 4.5 it is clear that among 60 respondents, 47% are
government employees, 20% are students, 13% are private employees, 13% are retired
people, and 7% are doing business/profession. Majority of the respondents are public
sector employees.

24
Income wise classification

Sample size are separated according to their monthly income are provided below in table
3.5 and figure 3.5.

Table 3.5
Income of Respondents

Monthly income Number of respondents Percentage

Below 10000 16 26.7
10000-25000 27 45
25000-50000 10 16.7
Above 50000 7 11.6
Total 60 100
Source: Primary data

Figure 3.5

CLASSIFICATION BASED ON INCOME

50
45
40
35
30
25
45
20
15
26.7
10
16.7
5 11.6

0
Below 10000 10000-25000 25000-50000 Above 50000

Above table 3.5 and figure 3.5, it is identified that 45% of the respondents are having
income between 25000 and 50000, 26.7% of respondents are having income below 10000,
16.7% are having income between 25000-50000 and 11.6% are having income above
50000. Most of the respondents have income between 25000 and 50000.

25
Area of Residence

Respondents are classified into three groups based on the area of their residence; details
are given below in table 3.6 and figure 3.6

Table 3.6

Occupation
Area of residence Number of respondents Percentage
Urban 11 18.3
Semi urban 27 45
Rural 22 36.7
Total 60 100
Source: Primary data

Figure 3.6

The given table 3.6, and figure 3.6 inferred that 45% of respondents are from semi-urban
area, 36.7% of respondents are from rural area and only 18.3% of respondents are from
urban area. Majority of respondents belongs to semi urban area.

26
Bank in which account belongs to

Respondents are differentiated based on the bank in which their account belongs to, details
are shown below the table 3.7 and figure 3.7.

Table 3.7

Bank in which account belongs to

Frequency Number of Respondents Percentage

State Bank of India 39 65
Canara Bank 3 5
Union Bank of India 4 6.7
Federal Bank 7 11.7
South Indian Bank 4 6.7
HDFC 2 3.3
Others 1 1.6
Total 60 100
Source: Primary data

Figure 3.7

The given table 3.7, and figure 3.7 inferred that almost 65% of respondents are having the
bank account of State Bank of India, 13.3% of them having the bank account of other
public sector banks and rest of the respondents are having the account of private sector
banks such as federal bank, South Indian Bank, HDFC etc. Majority of respondents are
customers of State Bank of India.

27
Type of Bank Account

Respondents are classified into two major groups based on the type of bank account they
have taken , either savings account or current account; details are given below in table 3.8
and figure 3.8

Table 3.8

Type of Account
Number of respondents Percentage
Savings Bank Account 50 83.3
Current Account 10 16.7
Total 60 100
Source: Primary data

Figure 3.8

From the table 3.8 and figure 3.8 it is clear that among 60 respondents, 83.3% are having
Savings bank account and remaining 16.7% are having Current Account. Majority of the
respondents (50 among 60) are having Savings bank account.

28
Period of relationship with bank

Sample size are separated according to the period of relationship with bank and are
provided below in table 3.9 and figure 3.9.

Table 3.9

Period of Relationship

Period Number of respondents Percentage

Less than 1 year 9 15
1-5 years 32 53.3
5-10 years 16 26.7
More than 10 years 3 5
Total 60 100
Source: Primary data

Figure 3.9

From the given table 3.9, and figure 3.9, it is inferred that almost 53% of respondents have
a period of relationship of 5 years with the respective bank and only 5% have more than
10 years of relationship. 26.7% respondents have relationship with the bank upto 10 years.
Majority of respondents have less than 5 years relationship with bank.

29
 Awareness level of following green banking products in the order of your knowledge
Here, the details regarding the awareness level of respondents towards various green
banking products in the order of their knowledge, are plotted in table 3.10 and figure 3.10

Table 3.10
Awareness level of green banking products

Green banking Highly % Aware % Somewhat % Not % Total

products aware aware aware
Net banking 20 33.3 34 56.6 4 6.6 2 3.3 60
Debit/Credit 26 43.3 30 50 4 6.6 0 0 60
cards
Mobile banking 25 41.6 27 54 6 10 2 3.3 60
Use of solar 6 10 16 26.6 21 35 17 28.3 60
powered ATMs
Unified payment 27 45 24 40 5 8.3 4 6.6 60
interface (UPI)
Green Cards 7 11.6 14 23.3 21 35 18 30 60
Green Car loan 6 10 8 13.3 25 42 21 35 60
Source: Primary data

Figure 3.10

From Table 3.10, and Figure 3.10, it is identified that, most of the respondents are aware about
net banking, debit/credit cards, mobile banking and UPI. But almost 30% of the respondents
are unaware about the green cards and green loan. Only 6 respondents are aware about the use
of Solar powered ATMs. Majority of the respondents are aware about green banking products
to a certain extent.

30
Preference regarding checking account balance while withdrawing money from ATMs

The details regarding the preference of customers regarding checking account balance
while withdrawing money from ATMs are shown below in the table 3.11 and figure 3.11

Table 3.11

Preference level
Particulars Number of respondents Percentage
Through receipts 17 28.3
Through ATM screen 43 71.7
display

Total 60 100
Source: Primary data

Figure 3.11

THROUGH ATM SCREEN DISPLAY 71.70%

THROUGH RECEIPTS 28.30%

From the table 3.11 and figure 3.11 it is clear that among 60 respondents, majority of the
respondents i.e., 71.7% prefer to check account balance while withdrawing money from
ATM through ATM screen display whereas only 28.3% prefer to check through receipts.
Through this analysis, it is inferred that majority of respondents follow green banking with
this perspective.

31
 Preference of making cash deposits at the bank branch

The details regarding the preference of customers regarding making cash deposits at bank
branch are shown below in the table 3.12 and figure 3.12

Table 3.12

Preference level
Particulars Number of respondents Percentage
Through Cash deposit Slip 48 80
Through swipe machine 12 20
Total 60 100
Source: Primary data

Figure 3.12

THROUGH SWIPE MACHINE 20%

THROUGH CASH DEPOSIT SLIP 80%

From the table 3.12 and figure 3.12 it is clear that among 60 respondents, majority of the
respondents i.e., 80% prefer to make deposit at bank branch through cash deposit slip
whereas only 20% prefer swipe machine. Through this analysis, it is inferred that majority
of respondents go with paper transaction for making deposits.

32
Usage of Green Banking Services

Respondents are differentiated based on the extent of their usage of green banking
practises; and the details are shown below the table 3.13 and figure 3.13.

Table 3.13

Usage of Green Banking Services

Usage Number of respondents Percentage
Always 42 70
Rarely 9 15
Never 9 15
Total 60 100
Source: Primary data

Figure 3.13

Rarely

Always

Never

From the table 3.12 and figure 3.12 it is clear that among 60 respondents, 70% of them
always use green banking services, 15% rarely use and remaining 15% never use green
banking services. Majority of the respondents use green banking practises always.

33
 Most Used Green Banking Service

Most used Green banking services are analyzed using mean scores. For this purpose, five
factors are ranked using mean score ranging from Rank1 (5), Rank2 (4), Rank3 (3), Rank4
(2), Rank5 (1). Analysis is shown in the table 4.14 and 4.14.1.

Table 3.14

Particulars Frequencies Total

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5

Online bill payment 29 11 10 9 1 60

Online Savings Account 12 13 14 14 7 60

Net banking 17 13 17 8 5 60

Electronic Fund Transfer 11 20 12 10 7 60

Mobile banking 24 16 9 6 5 60

Source: Compiled by Researcher

Table 3.14.1

Composite indices of most used green banking services

Particulars Weighted scores* Total Mean Level of

Score Rank
Score
Rank Rank Rank Rank Rank
1 2 3 4 5

Online bill payment 145 44 30 18 1 238 3.96 Rank 1

Online Savings 60 52 42 28 7 189 3.15 Rank 5

Account
Net banking 85 52 51 16 5 209 3.48 Rank 3

Electronic Fund 55 80 36 20 7 198 3.3 Rank 4

Transfer
Mobile banking 120 64 27 12 5 228 3.8 Rank 2

Source: Compiled by Researcher

34
Interpretation
Analysis of Composite indices of most used green banking services are shown in table
3.14.1. It is identified that, majority of the respondents are giving first preference for online
bill payment with mean score of 3.96, (3.8) with mobile banking. (3.48) score for internet
banking services provided by banks and respondents least prefer holding online savings
account with mean score 3.15.

Figure 3.14

35
 Factors influencing adoption of green banking services

Various factors influencing adoption of Green banking services are analyzed using mean
scores. For this purpose, four factors are ranked using mean score ranging from Rank1 (5),
Rank2 (4), Rank3 (3), Rank4 (2), Rank5 (1). Analysis is shown in the table 4.14 and 4.14.1.

Table 3.15

Particulars Frequencies Total

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5

Convenience 33 15 7 2 3 60

Ease of use 30 20 5 3 2 60

Environment concern 25 13 7 12 3 60

Time and Cost saving 27 11 11 7 4 60

Source: Compiled by Researcher

Table 3.15.1

Composite indices of factors influencing adoption of green banking services

Particulars Weighted scores* Total Mean Level of

Score Rank
Score
Rank Rank Rank Rank Rank
1 2 3 4 5

Convenience 165 60 21 4 3 253 4.2 Rank 1

Ease of use 150 80 15 6 2 253 4.2 Rank 1

Environment 125 52 21 24 3 225 3.75 Rank 4

concern
Time and Cost 135 44 33 14 4 230 3.8 Rank 3
saving
Source: Compiled by Researcher

36
Interpretation
Analysis of Composite indices of factors influencing green banking services are shown in
table 3.15.1. It is identified that, majority of the respondents are giving first preference for
both convenience and ease of use with mean score of 4.2, (3.8) time and cost saving. Mean
score of (3.75) for environment concern which is least preferred by respondents among all
other factors.

Figure 3.15

37
 Source of Information about Green Banking Products

Respondents are differentiated based on the different sources of Information about Green
Banking products and practises; and the details are shown below the table 3.16 and figure
3.16.

Table 3.16

Source of Information
Source Number of respondents Percentage
Banking Officials 6 10
Friends 20 33
Internet 26 43
Books and Journals 6 10
Other sources 2 4
Total 60 100
Source: Primary data

Figure 3.16

From the table 3.16 and figure 3.16 it is clear that among 60 respondents, majority of the
respondents (43%) are informed about the green banking practises through internet. 33% are
aware through friends. Through this analysis, it is inferred that least respondents are informed
through other sources such as newspaper, magazines etc.

38
 Banker’s Role in providing information regarding green banking practises

Respondents are differentiated based on their opinion regarding provision of relevant

information regarding various Green Banking products and practises; and the details are
shown below the table 3.17 and figure 3.17.

Table 3.17

Bank gives Sufficient information Number of respondents Percentage

Yes 13 22
No 11 18
May be 36 60
Total 60 100
Source: Primary data

Figure 3.17

Bank should take more initiatives to educate customers about green banking practices.

From the above table 3.17, it is inferred that majority of the respondents ie, 60% are of the
opinion that bank might be giving sufficient information regarding green banking practises.
18% of them are stating that bank doesn’t give sufficient information.

Figure 3.17 deals with the respondent’s level of agreement with a statement “Bank should
take more initiatives to educate customers about green banking practises”. Around 37% of the
respondents agree with the said statement. 24% of them are strongly agreeing with the
statement whereas 10% disagree with the statement.

39
 Level of efficiency regarding the usage of online banking

Respondents are differentiated based on the level of efficiency regarding the usage of
online banking which paves the way for green banking; and the details are shown below
the table 3.18 and figure 3.18.

Table 3.18

level of efficiency
Number of respondents Percentage
Expert 8 13
Proficient 27 45
Beginner 24 40
Novice 1 2
Total 60 100
Source: Primary data

Figure 3.18

From the above table 3.18 and figure 3.18, it is inferred that almost 45% of the respondents
are proficient in the usage of online banking. 13% of them are expert in usage. Around 40%
of respondents are still beginners in the usage of online banking. Majority of the respondents
are well proficient in the usage of online banking.

40
 Best way of implementing Green Banking

Respondents are differentiated based on their suggestion regarding the best way of
implementing Green Banking; and the details are shown below the table 3.19 and figure
3.19. Different ways of implementing Green banking services are analyzed using mean
scores. For this purpose, four factors are ranked using mean score ranging from Rank1 (5),
Rank2 (4), Rank3 (3), Rank4 (2), Rank5 (1). Analysis is shown in the table 4.19 and 4.19.1.

Table 3.19

Particulars Frequencies Total

Rank 1 Rank 2 Rank 3 Rank 4

Adopting paperless banking 41 9 7 3 60

methods
Use of energy consumption 13 29 12 6 60
method
Introducing green financial 18 21 17 4 60
products
Green building 17 15 11 17 60

Source: Compiled by Researcher

Table 3.19.1

Composite indices of factors influencing adoption of green banking services

Particulars Weighted scores* Total Score Mean Score Rank Level

Rank 1 Rank 2 Rank 3 Rank 4

Adopting 164 27 14 3 208 3.5 Rank 1

paperless banking
methods
Use of energy 52 87 24 6 169 2.8 Rank 3
consumption
method
Introducing green 72 63 34 4 173 2.9 Rank 2
financial
products
Green building 68 45 22 17 152 2.5 Rank 4

Source: Compiled by Researcher

Interpretation

41
Analysis of Composite indices of best ways of implementing Green Banking; are shown
in table 3.19.1. It is identified that, majority of the respondents are giving first preference
for adopting paperless banking methods such as net banking, mobile banking etc..with
mean score of 3.5, second preference to introducing green banking products with mean
score of (2.9). Mean score of (2.8) for the usage of energy consumption and green building
with a mean score of 2.5, is least preferred by respondents among all other factors.

Figure 3.19

42
 Whether green banking is completely environment friendly or not

Respondents are differentiated based on their opinion whether green banking is completely
environment friendly or not; and the details are shown below the table 3.20 and figure
3.20.

Table 3.20

Number of respondents Percentage

Yes 30 50
No 7 12
May be 23 38
Total 60 100
Source: Primary data

Figure 3.20

From the table 3.20 and figure 3.20, it is inferred that majority of the respondents ie, 50% of
them are of the opinion that green banking is completely environmental friendly. Least of
them are in the opinion that it is not environment friendly.

43
 Facing problems while using green banking services

Respondents are differentiated based on the frequency of facing problems while using
green banking services; and the details are shown below the table 3.21 and figure 3.21.

Table 3.21

Number of respondents Percentage

Always 0 0
Sometimes 24 40
Often 11 18
Rarely 13 22
Never 12 20
Total 60 100
Source: Primary data

Figure 3.21

From the table 3.21 and figure 3.21 it is interpreted that most of the respondents that is almost
40% of them face problems “sometimes” while using green banking products and services. It
is noticeable that no one has faced any problems always. Only 18% of the respondents face
problem often and 20% of them face rarely.

44
 Preference of Green banking products over Non-Green Banking products

Respondents are differentiated based on their preference of Green banking products over
Non-Green Banking products and services; and the details are shown below the table
3.22 and figure 3.22.

Table 3.22

Preference Number of respondents Percentage

High 10 17
Medium 45 75
Low 5 8
Total 60 100
Source: Primary data

Figure 3.22

From the table 3.22 and figure 3.22, it is inferred that majority of the respondents, almost
75% of them are preferred to replace non green banking products with green banking
products. Only 8% of them are preferred to stick on back with the non-green banking
products.

45
 CHAPTER 5

FINDINGS, SUGGESTIONS AND CONCLUSIONS

46
The present study is related to determine the consumer awareness and adoption of green
banking practises. The study focuses on analysing the significant differences in consumers
perception and their attitude towards the green banking initiatives made by banks, the
study also analyzes customer influencing factors, benefits derived from green banking,
and problems faced by the customers etc. After studying the responses of 60 respondents,
the study come with the following findings.

Findings of the study

Following are the findings obtained from the survey:

 The study reveals that, most of the respondents (58.3%) are male. Only (38.4%) of
respondents are female.

 The age wise analysis includes, out of 60 respondents 76.7% are belongs to 21-40
years.

 Most of the respondents are graduates (53%).

 Majority of the respondents are having occupation under Public Sector (47%).

 Greater part (45%) of the respondents have income in the range between 10000 -
25000.

 Majority of the respondents are residing at semi-urban area (45%).

 Most (65%) of the respondents are customers of State Bank of India.

 Almost 83% respondents are having Savings bank account from respective banks.

 Larger part (53%) of respondents have less than 5 years relationship with bank.

 Best part of the respondents are aware about net banking, debit/credit cards, mobile
banking and UPI. Only 10% of respondents are aware about the use of Solar powered
ATMs.

 Almost 30% of the respondents are unaware about the green cards and green loans.

47
 Majority of the respondents i.e., 71.7% prefer to check account balance while
withdrawing money from ATM through ATM screen display. Through this
perspective most of them are following green banking

 Almost 80% of the respondents prefer to make deposit at bank branch through cash
deposit slip whereas only 20% prefer swipe machine. Majority of respondents go with
paper transaction for making deposits.

 Among 60 respondents, 70% of them always use green banking services.

 Online Bill payment is the most used Green Banking Service; it is agreed by majority
of respondents with mean score 3.96.

 Convenience and ease of use are best preferred by the respondents as the reason for
the usage green banking services with mean score of 4.2.

 Majority of the respondents (43%) are informed about the green banking practises
through internet.

 The study reveals that more than half of the respondents (60%) are of the opinion that
bank might be giving sufficient information regarding green banking practises, whilst
the rest are stating that bank doesn’t give sufficient information.

 Around 37% of the respondents agree with the statement that “Bank should take
more initiatives to educate customers about green banking practises”.

 Majority of the respondents are well proficient in the usage of online banking.(45%)

 Paperless banking methods such as net banking, mobile banking etc..are considered
as the best ways of implementing green banking, it is indicated by a mean score of
3.5

 Introducing green financial products are agreed as best practise of green banking
implementation with a mean score of 2.9

48
 Mean score of (2.8) is for the usage of energy consumption method as effective
green banking implementation

 Half of the respondents are of the opinion that green banking is completely
environmental friendly.

 Almost 40% of the respondents face problems “sometimes” while using green
banking products and services.

 Best part of the respondents ie, 75% prefer to replace non green banking products
with green banking products.

Suggestions

The following suggestions can be given after detailed and careful investigation of the
research problem. These suggestions would definitely help to enhance the customer
perception, knowledge and ultimately usage of Green Banking practises:

 Banks should make more awareness programme regarding green banking, it can be
through the Bank’s Website
 Training and development of relevant skills among bank employees.
 Banks can introduce green funds for customers who would like to invest in environment
friendly project.
 Periodic campaigns have to be made mandatory by the banks to educate people about
the green banking services.
 Banks can have green lounge in all the retail branches, so people walking in to the
branch will be aware of green banking products and services.
 Bank employees should help their customers in educating them about the paperless
transactions.
 Banks can avoid tokens in paper instead they can allot numbers through Mobile phones.
 Automatic cheque and Automatic cash deposit can be made without paper receipt;
immediate SMS alert can be made instead of the receipt.

49
 Banks can place certificate obtained from government stating that the entire building is
green. With green IT, greening buildings and green data centre.
 Imparting education through Internet e-learning program, Interactive internet
application, Participation conference and meet.

CONCLUSION
The topic “A STUDY ON CONSUMER AWARENESS AND ADOPTION OF
GREEN BANKING PRACTISES” conducted with the sample size of 60 reveals that
larger part of the customers are aware only about the paperless banking methods such
as net banking, mobile banking etc, in the perspective of green banking. They are not
much aware about the green banking initiatives such as solar powered ATMs, energy
consumption methods, green buildings, innovative green financial products like green
loans, green cards etc. There is a lack of awareness among banking users about green
banking. It is the duty of the bank to create awareness among the customers about the
benefits of green banking; Major objective of this study is to study and analyse the
awareness level and the adoption of green banking practises among the customers.
Percentage and mean score analysis are the tools used, both primary as well as
secondary data are used. After the study it is concluded that majority of the respondents
should get proper awareness about all green banking products and services through
proper channels.
Sustainable development of Indian economy is based on banks and financial
institution. So Indian banks try to perform efficiently than the foreign banks for
attaining green banking system. They should take necessary action to educate the
general public for initiating green banking system. . For effective green banking, the
RBI and the Indian government should play a proactive role and formulate a green
policy guidelines and financial incentives.
This concept of “Green Banking” will be mutually beneficial to the banks, industries
and the economy. Not only “Green Banking” will ensure the greening of the industries
but it will also facilitate in improving the asset quality of banks in future.

50
BIBLIOGRAPHY

51
Journals

Dr. AL. Malliga & K. Revathy, (May 2016). “Customer awareness on green banking –an
initiative by private sector banks in Theni district”, EPRA International Journal of
Economic and Business Review, vol 4, issue5,

Neetu Sharma, Sarika K, Dr. R. Gopal, “A study on customer’s awareness on Green

Banking initiatives in selected public and private sector banks with special reference
to Mumbai” IOSR Journal of Economics and Finance

Jha & Bhome (2013), “A Study Of Green Banking Trends In India” Vol.2 International
Monthly Refereed Journal Of Research In Management & Technology

Jaggi (2014), the initiative by SBI and ICICI on Green Banking

Sharma, Gopal et al. (2014), in their articles entitled “A study the level of consumer
awareness of Green Banking initiative in India with special reference to Mumbai”.

Dr. Jha Nishikant. (2013) A Study of green banking trends in India. International Monthly
Referred journal of research in management & technology,; 2:127-132

Sharma K, Gopal. A Study on customer awareness on green banking initiatives in selected

public and private sector banks with special reference to Mumbai.

Ahmad, F., Zayed, N. M., & Harun, M. A. (2013). Factors behind the Adoption of Green
Banking by Bangladeshi Commercial Banks. ASA University Review, 7.2, 241-255.

Bhardwaj BR, Malhotra A (2013) Green Banking Strategies : Sustainability through

Corporate Entrepreneurship.

Greener Journal of Business and Management Studies 3 (4), 180-193, ISSN: 2276-7827.
Bihari SC (2011) Green Banking – Socially Responsible Banking in India. The India Banker
VI l(1).

52
Indian Banks Association (2014) Green Banking Innovations; Indian Bank 'Association.
[Cited 10/2/2015]. Available from: http://www.theindian lbanker.co.in/html/sto_5.htm.

Karunakaran R (2014) Green Banking – An Avenue to Safe Environment. Galaxy

international Inter disciplinary Research Journal 2 (2). ISSN 2347-6915.

Millat, K. M., Chowdhury, R. & Singha, E. A. (2012). Green Banking In Bangladesh:

Fostering Environmentally Sustainable Inclusive Growth Process. Dhaka, DHK:
Bangladesh Bank.

Nath V, Nayak N, GoelA (2014) Green Banking Practices – A Review. IMPACT:

International Journal of Research in Business Management 2 (4), 45-62. lISSN (E):
2321-886X; ISSN (P): 2347-4572.

Sekaran S.C. (2010) The role of Green banking in Environmental Management, Articlesbase.

Singh H, Singh BP (2012) An Effective and Resourceful Contribution of Green Banking

towards Sustainability. International Journal of Advances in Engineering Science and
Technology 1(2)

K. Sudhalakshmi and K.M. Chinnadurai (2014), A study on customers awareness on green

banking initiatives in selected private sector banks with special reference to
Coimbatore city

Ragupathi.M and Sujatha.S (2015), Green banking and Environment sustainability by

commercial banks in India, Green banking initiatives of commercial banks in India

Nath, Nayak & Goel (2014) [5], “Green Banking Practices - A Review”, Vol. 2 (4),

53
Books

Gupta, S.P,(2006) Statistical Methods, Sultan Chand & Sons Educational Publishers, New
Delhi.

Kothari, C.R.(2004) Research Methodology Methods and Techniques, New Age International
(P) Ltd., Publishing New Delhi

Websites:

 www.Shodhganga.inflibnet.ac.in.

 www.academia.com
 www.researchgate.com
 www.wikipedia.com
 www.indianjournals.com
 www.greengrowthknowledge.org

54
APPENDIX

55
 QUESTIONNAIRE

“A STUDY ON CONSUMER AWARENESS AND ADOPTION OF GREEN

BANKING PRACTISES”
This questionnaire is meant to collect data for study on the topic “A STUDY ON
CONSUMER AWARENESS AND ADOPTION OF GREEN BANKING PRACTISES
WITH SPECIAL REFERENCE TO KOTTAYAM DISTRICT”. Is carried out as a part of
partial fulfilment of M. Com course and Data collected will be kept as confidential and
will be used for academic purposes only. I request you to kindly fill the questionnaire.

Demographic profile:
Gender : Male Female Prefer not to say

Age: upto 20 21-40 41-50 Above 50

Educational qualification: SSLC

HSC
Degree
Post-Graduation and above

Occupation: Student
Private employee
Government Service
Business
Professional
Retired
Other:-

Monthly Income : Below 10000

10000-25000
25000-50000
Above 50000

Area of residence: Urban Semi Urban Rural

56
Select the bank in which you have account

SBI CANARA BANK FEDERAL BANK INDIAN BANK

SOUTH INDIAN BANK HDFC OTHERS (specify):

Type of Account: Savings account Current account

Period of relationship with bank:

Less than 1 year
1-5 years
5-10 years
More than 10 years

Rank the awareness level of the following green banking products in the order of your
knowledge

Your preference regarding checking account balance while withdrawing money from ATMs
Through receipts
Through ATM screen display

57
How do you make cash deposits at the bank branch?
Through Cash deposit Slip
Through swipe machine
Through Cash Deposit Machine

What extent do you use Green banking services?

Always Rarely Never

Most Used Green Banking Services: Rank them as per your preference

Online Bill payment

Online savings account

Net banking

Electronic fund transfer

Mobile banking

Rank the Factors Influencing the Adoption of Green Banking Services

Convenience

Ease of use

Environment concern

Time and cost saving

58
What is the Source of Information about Green Banking Products?

Banking Officials
Friends
Internet
Books and Journals
Newspapers
Other sources

Does your bank give sufficient information regarding green banking practices?
Yes No Maybe

Bank should take more initiatives to educate customers about green banking practices.
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree

Your level of efficiency regarding the usage of online banking?

Expert Proficient Beginner Novice

Rank the best way of implementing Green Banking

Adopting paperless banking

methods
Use of energy consumption method
Introducing green financial
products
Green building

59
Do you think that green banking is completely environment friendly?
Yes
No
May be

Do you face any problem while using green banking services?

Always
Sometimes
Often
Rarely
Never

What is your preference of Green banking products over Non-Green Banking products?
High
Medium
Low

THANK YOU!

60