Effect of Green Banking Initiatives: A Study on the Performance of Public Sector Banks

Purpose: The aim is to evaluate how green banking initiatives impact the performance of public sector banks. It examines the influence of environmentally sustainable practices on financial metrics such as profitability, risk management, and customer satisfaction, offering insights for policymakers, bank management, and stakeholders in promoting sustainable banking practices. Theoretical framework: This study includes concepts from environmental economics, corporate social responsibility, and financial management to analyze the impact of green banking initiatives. Design/Methodology: The study employs a mixed-method research design combining quantitative analysis of financial data with qualitative assessment through interviews for customers and case studies. This approach enables comprehensive examination of the impact of green banking initiatives on public sector bank performance from both numerical and contextual perspectives. The sampling of the study of 250 Customers of public sector banks. The geographical area of the study at southern districts of Tamilnadu. Findings: The study reveals a positive correlation between green banking initiatives and the performance of public sector banks, evidenced by improved profitability, enhanced risk management practices, and increased customer satisfaction. Additionally, it highlights the importance of sustainability efforts in fostering long-term financial viability and stakeholder trust within the banking sector. Originality: This study contributes original insights by focusing specifically on the impact of green banking initiatives within the context of public sector banks. By integrating environmental sustainability into financial performance analysis, it addresses a gap in existing literature and offers novel perspectives on the role of green practices in shaping the banking sector's performance.