HOW INDIA'S PUBLIC SECTOR BANKS ARE TURNING GREEN: A COMPARATIVE REVIEW OF GREEN BANKING INITIATIVES IN PUBLIC SECTOR BANKS

Abstract Green Banking has been a ground breaking revolution, which is reshaping the public perceptions of banking, finance and sustainability. It also has emerged as a vital strategy to align financial systems with environmental sustainability. This study investigates green banking initiatives of the selected Indian public sector banks. Through a qualitative content analysis of secondary sources such as sustainability reports, annual reports and official disclosures, the study evaluates Green Banking Initiatives (GBI) using a predefined framework. The conceptual framework categorizes GBI into - green product development (GPD), Green internal operations (GIP), and Green corporate social responsibility activities (GCSR) of the selected banks. The study also analyzed the financial flow of these selected banks towards renewable and non-renewable projects. Findings of the study reveal that these banks are increasingly aligning their operations with environmental goals by financing renewable energy projects, digitizing banking services, and promoting eco-conscious lending practices. While continued growth in green investments offers hope, the easy availability of funds for expanding dirty projects such as coal-projects underscores the potential risk. The banks encounter several challenges including limited customer awareness, regulatory gaps, and concerns over greenwashing. The study provides strategic recommendations for regulatory reforms, capacity building, and innovation in green financial instruments. The insights contribute to the growing body of literature on sustainable banking and provide a roadmap for enhancing environmental performance in India's banking sector.