Data analysis & interpretation

1. The means to create awareness internal as well as external sub system

Role of Green Banking in sustainable growth Green banking can help a lot in attaining benefits

of green banking sustainable development by creating awareness and by

Avoids Paper Work: Paperless banking almost all imparting education. Awareness can be

through banks in India are computerized or operate on a communication. The first step would be

defining target core banking solution (CBS). Thus there is ample groups and means of

communication. We can divide scope for the banks to adopt paperless or less paper the whole

system into two subsystems that is internal for office correspondence, audit, reporting etc. and

external sub-system. For internal sub systems, these banks can switch over to electronic means

which can be followed to create awareness on the correspondence and reporting thereby

controlling issue can be weekly green news on internet, clearing letter, Education can be

imparted to related people by - publication etc. and the target groups are managers and

Interactive E-learning Programs. other personnel. As far as external subsystems are

Interactive Internet Applications. concerned, effective means which can be followed

are • Special Fields on the Internet. websites, capacity building, road shows, events

Participation in Conferences and Meetings. meetings, bench marking, media etc.

whereas clients,

Publication of Information Material. subsidiaries and general public are target

groups.

Annual Environmental Report.

Analytical interpretation

The above data the researcher analyze that We can divide scope for the banks to adopt paperless

or less paper the whole system into two subsystems that is internal for office correspondence,

audit, reporting etc. and external sub-system. For internal sub systems, these banks can switch

over to electronic means which can be followed to create awareness on the correspondence and

reporting thereby

2. Education to attain sustainable development through green marketing

Consumer’s awareness of green marketing and its impact on sustainable development is high.

Consumers have expressed strong concerns about the concept of green marketing and

Sustainable development. Respondents Strongly Agree about sustainability is the most important

factor in decision making People are aware of green environment because it is less detrimental to

the environment and companies can look into implementation of this concept for betterment of

business. From the results of data analysis given in table 15 we can infer that the role of

government plays a vital role in green marketing. . As far as initiation of green marketing is

concerned everyone are responsible for green marketing. If we analyze the facts pertaining to

green marketing the significant results are positive at one end. On other end, consumers say that

it is difficult for all the companies to implement green marketing. ‘National Conference on

Management and Social Sciences –

Its Impact on Sustainable Development’, 25th – 26th October, 2013, ‘Organized by School of

Management Studies, ‘Chaitanya Bharathi Institute of Technology, Hyderabad,’ ‘Sponsored by

AICTE’, ‘Conference Editor - Dr.S.Saraswathi’ International Journal of Innovative Technology

& Adaptive Management (IJITAM) ISSN: 2347-3622, Volume-1, Issue-5, February 2014

www.ijitam.org 45 Environmental education refers to organized efforts to teach about how

natural environments function and particularly how human beings can manage their behavior and

ecosystems in order to achieve sustainable development. (Wikipedia, 2009). Consumers attitude

towards green branding and sustainable development is high. As far as green branding and

sustainable development are concerned the consumers strongly expressed that they are familiar

with green brands and the concept of sustainable development. Most of the consumers realize the

importance of green branding and sustainable development which means that there is a positive

sign for betterment of the environment as well as for business. Green marketing has positive

impact on sustainable development in India. This exploration into green marketing or ecofriendly

marketing is a positive sign for transition from India to a greener and greater India and for its

sustainable development. Further Research can be carried out in implementation of hypothesis

and advanced statistical tools can be used to achieve accuracy of results which adds flavor to this

paper

Banks can reduce their carbon footprints by adopting the following measures

a. Paper-less Banking: As banks have computerized their branches, there is ample scope for

doing paperless or less-paper banking. Mostly PSBs use huge quantities of paper for office

correspondence, audit reporting, recording public transactions, etc. These banks can switch over

to electronic correspondence and reporting. Banks should encourage their customers also to

switch over to electronic transactions and popularize e-statements.

b. Energy Consciousness: Developing energy- consciousness, adopting effective office time

management and automation solutions and using compact fluorescent lighting ( CFL) can help

banks save energy consumption considerably. Banks can conduct energy audits in all their

offices for effective energy management. They can also switch over to renewable energy ( solar,

wind, etc.) to manage their offices and ATMs.

c. Using Mass Transportation System: PSBs can become fuel efficient organization by

providing common transport for group of officials posted at one office.

d. Green Buildings: The Indian banking industry uses more than one lakh premises for their

offices and residential houses throughout the country. These banks should develop and use green

buildings for their office and employee accommodation.

b) These measures will not only help banks reduce their carbon footprint but also save the

operational costs considerably.

Analytical interpretation

The above data the researcher analyze that this exploration into green marketing or ecofriendly

marketing is a positive sign for transition from India to a greener and greater India and for its

sustainable development. Further Research can be carried out in implementation of hypothesis

and advanced statistical tools can be used to achieve accuracy of results which adds flavor to this

paper

3. To enumerate effective methodology of green banking

Until recently, environmental concerns were not considered relevant to the business operation of

banks and financial institutions. Traditionally, banking sector’s concern for environmentally

degrading activities of clients is like interfering or meddling in their business affairs. However,

now it is being perceived that dealing with environment brings risks to their business. Although

the banking and financial institutions are not directly affected by the environmental degradation,

there are indirect costs to banks. Due to strict environmental disciplines imposed by the

competent authorities across the countries, the industries would have to follow certain standards

to run their business. In the case of failure, it would lead to closure of the industry’s leading to a

likelihood of default to the bank. For example the enactment of Comprehensive Environmental

Response, Compensation and Liability Act in 1980 (CERCLA)

The UNEP statement by Financial Institutions on the Environment and Sustainable development

in 1992 showed that 80% of the signatories (200 financial institutions) made some kind of

assessment of environmental risks of investment projects before financing.

in the US in late 1980s has resulted in huge loss to the banks in the US as banks held directly

responsible for the environmental pollution of their clients and made to pay the remediation cost.

This is the reason for which banks in the US are ahead of other countries in integrating

environmental concerns into their business operations. In the recent years several other countries

(more in Europe) are seen adopting policies that have made banks responsible for the misdeeds

of their clients. Therefore, the financial institutions need to engage proactively with the

stakeholders on environmental and social policy issues and evaluate the impacts of their client’s

investment. In turn, that would force the customers to take care of their management of

environmental and social policy issues relating to investment. This should cover all project

financing activities across all industries. The importance of Green Banking is immense for both

the banks and economy by avoiding the following risks involved in banking sector.

Credit Risk: - It can arise indirectly where banks are lending to customers whose businesses

are adversely affected by the cost of cleaning up pollution or due to changes in environmental

regulations. The cost of meeting new requirements on emission levels may be sufficient to put

some companies out of business5. Credit risks may be higher due to the probability of customer

default as a result of uncalculated expenses for capital investment in production facilities, loss of

market share and third party liability claim. Credit risks are also associated with lending on the

security of real estate whose value has diminished owing to environmental problems (additional

loss in the event of default). Further, risk of loan default by debtors due to environmental

liabilities because of fines and legal liabilities and due to reduced priority of repayment under

bankruptcy. In few cases, banks have been held responsible6 for actions occurring in which they

held a secured interest (see Schmidheiny and Zorraquin, 1996 and Ellis, Millians and Bodeau,

1992). 5 Example, in United Kingdom, the breach of terms of the license given by integrated

pollution prevention control would lead to prohibition, financial penalties and enforcement

notice. All such notices can have significant financial implications for the business and as well as

the financial institutions those who have put money into it. Thus banks/financial institutions need

to take actions before financing the project. The enactment of CERCLA in USA in 1980s has

resulted in huge loss to the banks in USA as banks held directly responsible for the

environmental pollution of their clients and made to pay the remediation cost. 6 Some US courts

(H. Thomson) have sought to hold banks and other financial institutions liable for the

environmental damage caused by their customer’s actions, such as clean up costs and other

damages associated with

Legal Risk: - It can occur in different forms. Most obviously, banks like other companies are

at risk if they themselves do not comply with relevant environmental legislation. But more

specifically, they are at risk of direct lender liability for clean up costs or claims for damages if

they have actually taken possession of contaminated or pollution causing assets. An

environmental management system helps a bank to reduce risks and costs, enhance its image and

take advantage of revenue opportunities.

Reputation Risk: - In all likelihood, due to growing awareness about environment safety,

banking institutions are more prone to loose their reputations if they are involved in big projects,

which are viewed as socially and environmentally damaging. There are also few cases where

environmental management system has resulted in cost savings, increase in bond value etc

(Heim, G et al, 2005). In few cases the environmental management system resulted in lower risk,

greater environmental stewardship and increase in operating profit. Reputation risks involved in

the financing of ecologically and ethically questionable projects. The adoption of green banking

strategies will help the bank to deal with these risks involved in their business operation. Green

banking strategies involves two components (1) managing environment risk and (2) identifying

opportunities for innovative environmentally oriented financial products (IFC, 2007). To manage

environmental risk, the banks have to design proper environmental management systems to

evaluate the risks involved in the investment projects. The risks can be internalized by

introducing differential interest rates and other techniques. Moreover, bank can withdraw itself

from financing high-risk projects. The second component of green banking entails creating

financial products and services that support commercial development with environmental

benefits. These includes investment in renewable energy projects, biodiversity conservation,

energy efficiency, investment in cleaner production process and technologies, bonds and mutual

funds meant for environmental investments etc

7 . hazardous wastes. For example Fleet Factors case in 1990 where the bank (Fleet factor

corporation) was held liable for environmental damages incurred in the foreclosure process by a

firm they hired to auction off assets.

7 The growing market for sustainable investment funds such as Scudder Environmental Value

Fund (WBCSD, 1997) and the UBS Eco performance portfolios (UBS 1999) is a good example

for this trend. 7 Thus, the banking and financial institutions should prepare an environmental risk

and liability guidelines on development of protective policies and reporting for each project they

finance or invest (Jeucken, 2001). They can also have an environmental assessment requirement

for the projects seeking finance. Banks also can issue Environmental hazards management

procedures for the each project and follow through

8. International financial institutions like International Financial Corporation (IFC), Japan Bank

for International Cooperation (JBIC) have incorporated environmental management into their

business operation. All project proposals are classified in terms of its potential environmental

impact taking into account factors such as the sector and scale of the project, the substance,

proposed project site, the degree and uncertainty of its potential environmental impact. Often, the

World Bank’s loans and grants are associated with certain level of commitment of the

beneficiary countries to adopt environmental protection measures. The perception towards

complying with environmentally norms and standards is changing over time. Adhering to

environmental norms and standards were considered costly and as a bottleneck to development.

If we will consider the economic benefits of these in terms of health care, productivity and

insurance then the benefit is much higher than the cost9 . A study confirms that only air pollution

causes the loss of 200 million working days and the resulting losses in productivity and medical

expenses costs around 14 billion pound to the European Union (Stavros Dimas, 2005). If all the

impacts of environmental degradation are considered and costs are measured, then we can find

the huge economic benefits these protection measures brings in. Environmental friendly

technologies also make economic sense for the industries and actually lessen the financial burden

. Analytical interpretation

The above data the researcher analyze that The cost of pollution is rising with more awareness

about these issues all over the world. The polluting industries face more resistance and often

forced to closedown or face massive boycott by the consumers. This adds to their cost

enormously. Environmental concerns are integrated into the international trade policy and often

act as trade

4 To provide loan as comparatively at lower rate

After completion of their graduation, most students want to pursue higher education in any

professional institute or in any good university. However, it is the fee structure that makes you

think twice before taking admission in that particular institute. For a student who belongs to a

middle class family, arranging a hefty amount as fee is quite a difficult task. In such a situation,

one feasible option that can support your studies is education loan from banks. It is most

common and best way to support your studies. Another big question which boggles your mind is

from which bank you should take education loan.

Presently, there are many private and government banks which offer bank loans to students at

different interest rates. There are certain factors which you should keep in mind while choosing a

bank for taking education loan. There are many private banks which offer education loans with

different features and there are many government banks which offer education loan to students at

very reasonable interest rates. Both type of banks have their advantages and disadvantages.

Hence, before taking a education loan you should compare all the factors well and than take

decision on which bank will suits your needs and provides you maximum benefits.

Government banks are more trustworthy: Government banks are more trustworthy as they are

governed by the government. The can not charge you whatever they want. They have set rule and

Reserve Bank of India gives them instructions on various things. The interest rate and terms are

decided by the Reserve Bank and these national banks cannot make any changes by their own.

Private Banks work more smoothly: It is assumed that private sector banks work in a hassle

free manner as compared to government banks. The employees in these banks are customer

friendly and ready to help people. On the other hand, in private banks the process to take any

kind of loan is too tedious. They ask for different kind of papers for verification and take too

much time to provide a loan.

Government banks offer lower interest rate: It is well-known fact that the interest rate of

government banks is much lower as compared to private banks. They offer you lower interest

rates, and this is the main reason why people seek education loans from government banks. They

charge comparatively lower interest for the same amount.

Below are the interest rates of some government banks:

National Banks

Interest rates up to Rs. 4

Lakh

Interest rates between Rs. 4 Lakh and 10

Lakh

State Bank of India 12.00 12.50, 13.50

Punjab National

Bank 12.00 12.75

Union Bank 13.25 13.00, 13.75

Bank of India 13.00 13.00, 13.50

Bank of Baroda 11.00 13.50

Analytical interpretation

The above data the researcher analyze that It is well-known fact that the interest rate of

government banks is much lower as compared to private banks. They offer you lower interest

rates, and this is the main reason why people seek education loans from government banks. They

charge comparatively lower interest for the same amount.

5. Influence of various aspect on service behavior

Construct a Website and Spread the News.

Educate through the Bank’s Intranet and Public Website.

Participate in Events.

Set up outlets to promote green business.

Communicate through the Press.

Disseminate info through Leaflets.

Social Responsibility services done by banks.

Carbon footprint reduction by energy consciousness.

Carbon footprint reduction by mass transportation.

Impart education through E-learning Programmes.

Makin g it a part of annual environment report.

Analytical interpretation

The above data the researcher analyze that On the other hand, in private banks the process to take

any kind of loan is too tedious. They ask for different kind of papers for verification and take too

much time to provide a loan.

Finding

The researcher found that we can divide scope for the banks to adopt paperless or less

paper the whole system into two subsystems that is internal for office correspondence,

audit, reporting etc. and external sub-system. For internal sub systems, these banks can

switch over to electronic means which can be followed to create awareness on the

correspondence and reporting thereby

The researcher found that this exploration into green marketing or ecofriendly marketing

is a positive sign for transition from India to a greener and greater India and for its

sustainable development. Further Research can be carried out in implementation of

hypothesis and advanced statistical tools can be used to achieve accuracy of results which

adds flavor to this paper

The researcher found that The cost of pollution is rising with more awareness about these

issues all over the world. The polluting industries face more resistance and often forced

to closedown or face massive boycott by the consumers. This adds to their cost

enormously. Environmental concerns are integrated into the international trade policy and

often act as trade

The researcher found that It is well-known fact that the interest rate of government banks

is much lower as compared to private banks. They offer you lower interest rates, and this

is the main reason why people seek education loans from government banks. They charge

comparatively lower interest for the same amount.

The researcher found that On the other hand, in private banks the process to take any kind

of loan is too tedious. They ask for different kind of papers for verification and take too

much time to provide a loan.

Recomdatation

In general all the green marketing strategies are expensive and difficult to implement in

the short run.

The environmental benefits are intangible, indirect or insignificant to consumers For

example, consumers cannot see the emissions being spared when they use energy saving

appliance.

Environmental benefits are difficult to measure or quantify.

Some strategies (e.g. promotion) are subject to manipulation For example some

marketers use false environmental claims in order to gain competitive advantage.

The success of green marketing depends on several stakeholders who must work as a

team. These include; general public, employees, retailers, government, environmental

groups, and suppliers. Any group can derail the exercise.

The costs saved through recycling are doubtable.

Conclusion

In a rapidly changing market economy where globalization of markets has intensified the

competition, the industries and firms are vulnerable to stringent public policies, severe law suits

or consumer boycotts. This would affect the banks and financial institutions to recover their

return from investment. Thus, the banks should play a pro-active role to take environmental and

ecological aspects as part of their lending principle which would force industries to go for

mandated investment for environmental management, use of appropriate technologies and

management systems. Green Banking if implemented sincerely will act as an effective ex ante

deterrent for the polluting industries that give a pass by to the other institutional regulatory

mechanisms. There has not been much initiative in this regard by the banks and other financial

institutions in India though they play an active role in India’s emerging economy. The banking

and financial sector should be made to work for sustainable development. As far as green

banking in concerned, India’s banks and financial institutions are running behind time. None of

our banks or financial institutions haves adopted equator principle even for the sake of records.

None of them are signatory to the UNEP Financial Initiative statement. It is time now that India

takes some major steps to gradually adhere to the equator principles-guidelines that use

environment-sensitive parameters, apart from financial, to fund projects.

This paper has suggested that marketing like other functional areas of a business contribute to

environmental concerns facing the world today. Therefore, it has a role to play in looking for

solutions to these environmental problems. The paper further suggests that marketing through

green marketing and specifically green marketing strategies is addressing the challenge with

positive outcomes of improved organizational performance, better physical environment which

will lead to sustainable development.

India’s growth story and commitment to cut its carbon intensity by 20-25 percent from 2005

levels by 2020 provides tremendous opportunities for Indian banks from funding sustainable

projects to offering innovative products and services in the areas of green banking. Initially,

these commitments to environmental and social guidelines will cause a huge financial burden for

Indian banks. For effective green banking, the RBI and the Indian government should play a pro

active role and formulate a green policy guidelines and financial incentives. The survival of the

banking industry is inversely proportional to the level of global warming. Therefore, for

sustainable banking, Indian bank should adopt green banking as a business model without any

further Del

LIMITATION

The study is based on secondary data.

The study is confined only to specific sectors and few examples are given only due to data and

time constraints.

Researcher cannot get wide information during Research.

Researcher is only on indicator and cannot solve the problem.

This research report is part of my course-curriculum and I have analysed the problem with the

limited time and knowledge which was at my disposal.

Complex statistical tools for data analysis have not been employed.

BIBLIOGRAPHY

Market Research by Tull and Hawkins

Marketing Management by Philip Kotler

www.idbi.in

www.sbi.com

www.google.in

Scribed. In

Slideshare.in