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Abstract

All over the world institutions are concerned about the overall impact of depletion of environment. Banks and financial institutions are also playing a major role in optimizing or reducing carbon footprints. Green Banking is also a part of India‟s mission of “Go Green” and plays an active role to take environmental and ecological aspects as part of their lending principle. Green banking is comparatively a new development in the financial world. Green banking means promoting environmental friendly practices and reducing carbon footprint from banking activities. It is a form of banking taking into account the social and environmental impacts and its main motive is to protect and preserve environment. In a rapidly changing market economy where globalization of markets has intensified the competition, the industries are vulnerable to stringent public policies, severe lawsuits or consumer boycotts. The most important themes of the 21st century are the green safety and sustainable ecological balance.

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