Author(s) :   Dr. Anshuman Magar¹, Ishika Goel², Rutuja Handgar³, Rutuja Kodilkar⁴

Abstract : This study presents a comprehensive analysis of India's evolving green banking landscape through systematic examination of secondary data from regulatory bodies, financial institutions, and corporate reports (2019-2024). As India progresses toward its 2070 net-zero commitment, the banking sector has emerged as a critical enabler of sustainable development through innovative financial instruments and policy-aligned initiatives. Our research reveals three key dimensions of India's eco-finance transformation. First, an analysis of RBI data demonstrates significant growth in sustainable finance, with green loan disbursements increasing by 67% since 2020, predominantly driven by renewable energy projects (42%) and green infrastructure (31%). Second, SEBI's 2023 ESG disclosure requirements have catalyzed measurable changes, resulting in a 140% increase in green bond issuances within the first year of implementation.

Third, comparative financial analysis indicates that banks with comprehensive green portfolios consistently outperform industry averages by 3-5% in key metrics including ROA and NIM. The study identifies distinct patterns in adoption across demographic segments. While urban centers account for 78% of green banking transactions, rural adoption rates remain constrained by infrastructure limitations and financial literacy gaps. Age-disaggregated data shows millennials (25-40 years) constitute 62% of users for digital green financial products, though participation drops sharply among customers above 55 years (18%). These findings have important policy implications. The research highlights the effectiveness of regulatory interventions, with banks subject to stringent sustainability reporting requirements showing 23% higher compliance with green lending targets. However, persistent challenges include uneven regional implementation and limited MSME participation in sustainable finance programs. This study contributes to the literature by providing empirical evidence of the financial viability of green banking in emerging markets, while identifying actionable pathways to accelerate inclusive adoption. The results suggest that India's banking sector can serve as both an economic growth engine and sustainability catalyst through targeted product innovation, enhanced rural outreach, and strengthened policy frameworks.

Keywords: Sustainable finance, Banking regulation, ESG compliance, Climate-aligned lending, Financial inclusion, Green transition.

DOI: 10.61161/ijarcsms.v13i7.4

Pages : 29-40

*Authors are invited to submit papers through E-mail at editor.ijarcsms@gmail.com