Fostering a Greener India: Exploring the Mediating Role of Green Finance in Banking Activities and Environmental Performance

The present study examines the effect of green banking initiatives on green financing and the environmental performance of Private Commercial Banks (PCBs) in India. The study discusses the relationship between green banking activities and environmental performance, with green financing mediating. The research brings out the challenges and benefits of advancing green banking in the Indian economy. By adopting the snowball sampling technique, a total of 1,280 responses were gathered from the PCBs, and Smart-Partial Least Squares (PLS) software was used to analyse the structural relations between variables as well as to assess the reliability and validity of the measurement model and validate the strength and its significance for all structural paths. The overall empirical findings revealed that green banking activities have had a positive correlation and significance regarding environmental performance through the PCBs of India. The bridge between green banking activities and environmental performance is linked through green financing. In addition, the present study highlights the benefits of the spread of green banking in India, which include enhanced competitiveness, improvement in customer goodwill, reduced long-term costs and carbon footprint minimisation that contributes to sustainable economic growth and national progress. This research provides valuable conceptual insights and policy implications for managers seeking to enhance green banking services. PCBs can play a pivotal role in addressing environmental challenges and promoting sustainability in the banking sector by fostering green financing and implementing sustainable practices. The findings will serve as a guide for policymakers and banking professionals who are aiming to integrate environmental considerations into their strategic frameworks.