Customers Perceptiveness on Green Banking Practices - A Review of Selected Banks in India

Abstract

The paper examines thoroughly the way in which green banking practices are perceived by customers in India. The aim of the study was to assess whether selected Indian banks, as well as State Bank of India, Canara Bank and IDBI Bank, had green banking practices that were understood, informed and accepted by their customers. The research methodology involved using a mixed-method approach, combining both qualitative and quantitative data collection methods. Data was gathered through a structured questionnaire and interviews conducted with customers of these banks. The study included a sample size of 100 customers from each bank, totaling 300 customers. Results indicated that customers generally have a moderate level of awareness about green banking practices, with CANARA Bank customers showing the highest awareness. Customers also demonstrated a good understanding of the benefits of green banking practices, such as reducing carbon footprints, conserving natural resources, and contributing to sustainable development. However, the study highlighted various factors influencing customers' perceptiveness of green banking practices, including a lack of information, trust in the bank's commitment to green initiatives, and concerns about the costs involved in implementing such practices. The study also showed that demographic and socioeconomic characteristics had an impact on customers' acceptance of banking practices which were environmentally friendly. Green banking practices were more likely to be supported by customers with higher education, environmental awareness, and financial stability. In conclusion, the study suggests that there is a need for banks to increase their efforts in creating awareness and providing information on green banking practices to their customers. Banks should also build trust and credibility by implementing and reporting on their green initiatives. Additionally, banks should consider the socio-economic characteristics of their customers when designing and implementing green banking practices. The study delivers insights that can guide banks in their efforts to promote sustainable banking practices in India.