Green Banking in India: Sustainable Finance, Environmental Risk and the Future of Responsible Lending
Keywords: Green banking, sustainable finance, environmental risk, responsible lending, India, sustainable development, banking regulation, environmental management, small-scale industries.
Abstract
Green banking is no longer a decorative idea attached to corporate social responsibility; it has become a practical requirement for banks that wish to protect their loan portfolios, support sustainable development and remain credible in a society that is increasingly alert to environmental damage. Although banks do not normally create heavy industrial pollution through their own branches and offices, they indirectly influence pollution through the projects, firms and industries they choose to finance. When banks lend to businesses that ignore environmental rules, use outdated technologies or face the possibility of fines, closure and public protest, the financial risk eventually returns to the lending institution. Green banking therefore connects environmental responsibility with sound banking practice. It encourages banks to treat environmental assessment as part of credit appraisal, risk management, product innovation and long-term development policy.
This manuscript rewrites and expands the discussion on green banking in India by explaining its meaning, importance, risk implications, international development, relevance for Indian industry and possible policy measures. The argument is simple: India cannot rely only on government regulation after pollution has already occurred. Financial institutions must also become early-screening agencies that guide industries toward cleaner production, better compliance and responsible use of resources. A greener banking system can help reduce credit risk, protect reputation, improve asset quality, support small and medium enterprises and create new opportunities in renewable energy, energy efficiency, cleaner technologies and environmentally responsible investment. For India, where industrial growth, export competitiveness, public health and environmental pressure are closely connected, green banking should be treated as an essential part of sustainable economic planning rather than as an optional add-on.
"Green Banking in India: Sustainable Finance, Environmental Risk and the Future of Responsible Lending", JETNR - JOURNAL OF EMERGING TRENDS AND NOVEL RESEARCH (www.JETNR.org), ISSN:2984-9276, Vol.4, Issue 6, page no.c340-c356, June-2026, Available :https://rjpn.org/JETNR/papers/JETNR2606264.pdf
Volume 4
Issue 6,
June-2026
Pages : c340-c356
Paper Reg. ID: JETNR_235282
Published Paper Id: JETNR2606264
Downloads: 00064
Research Area: Management All
Country: Pune, Maharashtra, India
DOI: https://doi.org/10.56975/jetnr.v4i6.235282
ISSN: 2984-9276 | IMPACT FACTOR: 9.87 Calculated By Google Scholar | ESTD YEAR: 2023
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.87 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator
Publisher: RJPN (IJPublication) Janvi Wave
