GREEN BANKING 2012

INTRODUCTION
Green banking is like a normal bank, which considers all the social and environmental/ecological factors with an aim to protect the environment and conserve natural resources.It is also called as an ethical bank or a sustainable bank. They are controlled by the same authorities but with an additional agenda toward taking care of the Earth's environment/habitats/resources. Green Banking is like a normal bank, which considers all the social and environmental factors, it is also called as a ethical bank. Ethical banks have started with the aim of protecting the environment. These banks are like a normal bank which aims to protect the environment and it is controlled by same authorities as what a traditional bank do. There are many differences compared with normal banking, Green Banks give more weight to environmental factors, their aim is to provide good environmental and social business practice, they check all the factors before lending a loan, whether the project is environmental friendly and has any implications in the future, you will awarded a loan only when you follow all the environmental safety standards. Defining green banking is relatively easy. Green Banking means promoting environmental friendly practices and reducing your carbon footprint from your banking activities..This comes in many forms 1. Using online banking instead of branch banking. 2. Paying bills online instead of mailing them. Opening up accounts at online banks, instead of large multi branch banks 1. Finding the local bank in your area that is taking the biggest steps to support local green initiatives. Green banking can benefit the environment either by reducing the carbon footprint of consumers or banks. Either works. Some with paper. Either a bank or a consumer can conserve paper and benefit the environment. Ideally, a green banking initiative will involve both. Online banking is an example of this. When a bank's customer go online, the environmental benefits work both ways. Green banking means combining operational improvements and technology, and changing client habits.

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DEFINITION OF GREEN BANKING
Defining green banking is relatively easy. It means promoting environmental-friendly practices and reducing your carbon footprint from your banking activities. This comes in many forms. Using online banking instead of branch banking. Paying bills online instead of mailing them. Opening up CDs and money market accounts at online banks, instead of large multi-branch banks. Or finding the local bank in your area that is taking the biggest steps to support local green initiatives. Any combination of the above personal banking practices can help the environment. So this leads to the question, which banks are green. In general, online banks and smaller community banks have better track record than larger banks. Goldman Sachs (GS) Citigroup (C) JP Morgan (JPM) Bank of America (BAC) These banks have at least one thing in common. That is, they are all large billiondollar asset banks. They are also in the group of banks that received TARP money in the government bank bailout program. In would seem common sense to label these banks as not eco-friendly and assume that they leave an enormous carbon footprint in comparison to an online banks like Everbank.com or Virtualbank.com. Despite these assumptions, which Green Bank Report believe to be true, it is important to remember that even these large BP-friendly, TARP-sucking monster banks can be induced to go green. It just takes a little grass roots effort.

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THE HISTORY OF GREEN BANK
Although the roots of the environmental movement can be traced as far back as 1739, much of modern history did not reflect a conscientious concern for our natural resources and the sustainable management of such until late. Just think about how our progress has led to the demise of the environment; the Industrial Revolution, pollution, cars and smog, pesticidesthe list could go on and on. In the 20th century, environmental concerns grew in popularity and recognition, and throughout the 1950s, 60s, 70s and beyond, public awareness and the encouragement to go green has experienced exponential growth. As more people and businesses are recognizing the importance of preserving our environment and adopting green practices, it is safe to say the movement is not a fad, but has taken root and is here to stay. As late as 20 to 25 years ago, making ecologically friendly choices was more of a choice attributed to the tree-hugger types rather than a necessity and an assumed way to live. Since then, we have come to realize that if we truly intend to save the planet, we must consider the impact we have made leading to its destruction. Not only are individuals stepping up to the plate to make changes, so are businesses across the globe. Historically, the only green that banks cared about was the government-issued currency kind, but that too is changing. Even banks have adopted several practices to aid in the green movement. By doing so and encouraging customers to take advantage of said practices, banks are dramatically reducing their carbon footprints. The private financial sector, more than any other, has the ability to begin the ecological U-turn modern society so desperately needs, said Ilyse Hogue, director of the global finance campaign at Rainforest Action Network in a 2005 Time magazine article. The U-turn she referenced is currently being made. In the last decade, people across the board have cut down on waste and promoted earth-friendly products and services. In the financial sector, one emerging trend is a move to promote green banking practices. According to a survey from Javelin Strategy and Research and the Arbor Day Foundation, If every American household went paperless, it could reduce solid waste in U.S. landfills by more than 800,000 tons a year, help curb the release of greenhouse gases by 2.1 million tons a year and save an estimated 18.5 million trees each year. In 50 years, one tree recycles more than $37,000 worth of water, provides $31,000 worth of erosion control, $62,000 worth of air pollution control, and produces $37,000 worth of oxygen. A study by the PayItGreen Alliance estimates that one households annual paper statements from banks would strip 24 square feet of forest each year. Consider the cost. Financial institutions keenly recognize their role in a paperless society and are working to implement efficient, convenient, less wasteful strategies every day. Online banking, electronic bill pay and e-statements are just the beginning.

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Having access to banking information online saves trips to branches and gas. Beyond that, companies are now using remote capture to process checks at their place of business. Remote capture is the wave of the future in banking, and it too is green a major bonus. Even more so, in the post-recession economy, the efforts people and companies are making to adopt green practices are priceless. Saving money and innovatively using what you have has become mainstream philosophy. It isnt necessary to spend extra money to buy fancy, organic green products; it is about making simple day-to-day decisions, like choosing e-statements over paper statements, that are making the greatest impact on our society. Families are constantly seeking ways to take the greatest advantage of our natural resources and taking necessary measures to renew those resources to promote sustainability. Going green isnt just for tree huggers any more.

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BENEFITS OF GREEN BANKING

Basically Ethical (Green) banking avoids as much paper work as possible and rely on online/electronic transactions for processing so that you get green credit cards and green mortgages. Less paperwork means less cutting of trees . Creating awareness to business people about environmental and social responsibility enabling them to do a environmental friendly business practice. Green (Ethical) banks adopt and implement environmental standards for lending, which is really a proactive idea that would enable eco-friendly business practices which would benefit our future generations. When you are awarded with a loan, the interest of that loan is comparatively less with normal banks because ethical banks give more importance to environmental friendly factors - ecological gains. Natural resources conservation is also one of the underlying principles in a green bank while assessing capital/operating loans to extracting/industrial business sector. Green banking is Our SBI in India has also gone with an operational segment of green banking. Green banking requires a paradigmatic change in thinking about economics, business and finance. Its success would be greater if the world governments started to revise their economic paradigms from being 'monetary economics' to 'ecological economics' and begin to transform their accounting principles from purely being financial into ecological/operational energy accounting patterns.

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IMPORTANCE OF GREEN BANKING

Until recently, environmental concerns were not considered relevant to the business operation of banks and financial institutions. Traditionally, banking sectors 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 industries 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 clients 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.

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ROLE OF GREEN BANKING IN BANKS

In a globalised economy, the industries and firms are vulnerable to stringent environmental policies, severe law suits or consumer boycotts. Since banking sector is one of the major stake holders in the Industrial sector, it can find itself faced with credit risk and liability risks. Further, environmental impact might affect the quality of assets and also rate of return of banks in the long-run. Thus the banks should go green and 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. This study explores the importance of Green Banking, green banking products and providing banks in India. However, we find that 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. Therefore, we suggest possible policy measures and initiative to promote green banking in India.

Relevance of Green Banking

Banks like any other business directly interact with the environment as consumers of natural resources. During their day to day business banks heavily contributes towards the carbon emission in terms of use of paper, electricity, stationary, lighting, air conditioning, electronic equipment etc. even though this is moderate compared to other carbon sensitive industries like steel, oil and gas etc. In the case of banks, the direct interface with the environment has considerably increased due to rapid growth of the banking industry. Banks affect the environment indirectly by financing intermediaries that have an external impact on the environment. They are the major source of long term funding to various industries such as cement, fertilizers, nuclear power, steel, oil and gas, paper etc. which pollute the environment heavily. Being a major source of fund provider, banks can play a crucial role in ensuring environmentally sustainable and socially responsible investments in the economy. Banks should try and reduce the increase in carbon footprint caused by them either directly and indirectly and should play a vital role in ensuring sustainable and environment friendly development. In addition, if the lending decisions of the banks are not done prudently as per the environmental criteria, then it may lead to credit risk, legal risk and reputational

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IMPERATIVES OF GREEN BANKING

Green banking is very important in mitigating the following risks involving the banking sector: i) Credit Risk

Due to climate change and global warming, there have been direct as well as indirect costs to banks. It has been observed that due to global warming, there have been extreme weather conditions which affect the economic assets financed by the banks, thus leading to high incidence of credit default. Credit risk can also arise indirectly when banks lead to companies whose businesses are adversely affected due to changes in environmental regulation. Credit risk can also arise when a bank had given advances to a real estate firm whose property value fell because of environmental issues. Moreover small and medium enterprises (SMEs) engaged in manufacturing business do not have sufficient capital to shift to clean production methods. Hence there are chances of credit risk in these loan portfolios as well in case government comes out with stringent environment regulatory rules. ii) Legal risk

Banks are at a legal risk if they themselves don't comply with the environmental regulations. But more than inadequate environmental practices followed by debtors may lead to legal risk. The banks will be at a legal risk when they take possession of a collateral property (under SARFAESI or due to loan default) which is contaminated or is a pollution causing asset. For example, A company which has taken loan may incur legal liability to clean up the contaminated site which may further lead to bankruptcy. In such a case the bank's ability to recover the loan is stalled and if the polluted site is part of the collateral security, the value of the property intended to set off default losses is also reduced. If a bank has a proactive environment management system put in place then it can reduce this risk to a great extent. iii) Reputation Risk

Due to increasing environmental awareness , banks are more prone to reputation risk, if their direct or indirect actions are viewed as socially and environmentally damaging. Reputation risks emerge from the financing of environmentally objectionable projects. Banks should watch out from financing environmentally objectionable projects. Banks are certain to lose their reputation if they are involved in some big projects which adversely affect the environment and causes pollution.

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In addition if loans are advanced to industries which pollute the environment, those industries will face restriction from public and are often forced to shut down their business, thereby creating over and above the reputational risk causing credit risk as well. As India has committed to reducing its carbon intensity by 20-25 percent from 2005 levels by 2020, we are working towards developing a low carbon economy. In a low carbon economy, there will be many challenges and opportunities to banks. Green banking will be at the forefront of this drive to harness banking expertise and build the post-carbon economy. The biggest impact of the carbon cut commitment will be on small and medium Enterprise, steel and cement industries which are carbon intensive. In order to avoid credit risk in these loan portfolios as well as to grab new business opportunities, Indian banks must immediately adopt green banking strategies to reduce the carbon footprint of individual banks will not only make them socially responsible corporate citizens but will also help save substantially operational costs. There are lot of opportunities and challenges for Indian banks in adopting Green Banking as a profitable business.

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GREEN BANKING STRATEGIES

Indian Banks can adopt green banking as a business model for sustainable banking by launching some of the following strategies:

i)Carbon credit business

Under the Kyoto protocol, Clean development Mechanism( CDM) provides for cooperation between annexure 1 and non annexure-1 ( developing) countries. The operational mechanism of CDMs involves an investment by a legal entity from an annexure-1 country into a project in non-annexure-1 country, which results in emission reduction. These emission reductions have to be certified by an appropriate authority and these certified Emission Reductions ( CERs) which are commonly known as carbon credits can be used to meet the commitments of annexure-1 countries under the Kyoto protocol. These carbon credits are traded in the markets. CDM projects are those projects that contribute to credible and sustained reduction in GHG emissions. Indian banks can involve themselves in carbon credit business, wherein they can provide all the services in the area of CDMs and carbon credits including services of identification and funding of CDM projects, advisory services for registration of CDM projects and commercialization of CERs under different structures to meet the requirements of its customers, acting as an intermediary for buying CERs on behalf of end-users or carbon funds, financing against CERs and CERs receivables, and other related banking services. As India has huge potential for carbon credit business, Indian banks can set up dedicated carbon credit cells to capture a major share of this carbon credit business.

ii) Green Banking Financial Products

Indian banks should develop innovative green banking financial products which can directly or indirectly help in the reduction of carbon emissions. These banks can introduce a Green Fund to provide climate conscious customers the option of investing in environmental friendly projects. Banks can also introduce green bank loans with financial concessions for environmental friendly products and projects. Besides introducing specific green banking products, banks can incorporate an Environmental Impact Assessment ( EIA) in their project appraisal while financing any project to measure the nature and magnitude of environmental impact as well as suggest environmental risk mitigation measures. Banks can also conduct environmental audits of the financed projects. Banks need to redesign their credit products to assist SMEs to adopt quality and conform to environmental standards.

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Banks should also include green guidelines in their credit policies to raise the green loan portfolio.

iii)Mortgages
Green Banks such as Citigroup Inc., Bank of America, and JP Morgan Chase &Company are just a few of the mortgage lenders offering special discounts on mortgages used to build or update buildings and homes to be more green. One of the reasons for the push for green mortgages is that green building and rebuilding tends to incorporate more energy-efficient materials and building plans. There are two types of green mortgages: the Energy Improvement Mortgage its like a second mortgage that is to be used to upgrade a home or building to energy efficient by installing energy saving items such as solar panels and improved insulation - and the Energy Efficient Mortgages for the construction of new energy efficient homes and buildings. There are many states getting in on the green mortgage by offering subsidized green mortgages so that more home-owners and business owners can green-up their buildings. In addition to helping save the environment by using less energy, these mortgages offer many advantages to consumers by reducing monies spent on high utility bills and on high costs of obtaining a mortgage. The Residential Energy Services Network reported on a recent study showing that the market value of a home increases $20 for every $1 decrease in energy costs.

iii)

Carbon Footprint Reduction

Carbon foot-print is a measure of the impact of our activities on the environment. It relates to the amount of GHG we are producing in day-to-day business while burning fossil fuels for electricity, heating, transportation, etc. 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

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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. These measures help banks reduce their carbon footprint .

GREEN BANKING STRATEGIES COMPONENTS

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 (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 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. 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 Banks 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.

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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 cost. 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. 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 close down 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 barrier for environmentally sensitive goods (ESGs). So adopting environmentally sustainable technologies or modes of production is no more considered as a financial burden, rather it brings new business opportunities and higher profit. Green banking saves costs, minimizes the risk, enhance banks reputations and contribute to the common good of environmental sustainability. So it serves both the commercial objective of the bank as well as its social responsibility. Green banking solves the problem faced by the environmental regulation and enforcements authorities related to size and location of the polluting unit. The authorities have practical limitations on en forcing environment standard on smallscale industries and also industries located in far off places.

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SCOPE OF GREEN BANKING

The model that the bank uses is different from other banks. Will the model itself be a limiting factor on the ambitious growth and development plans of the bank? Will the day-to- day business of being a bank dominate over the desire to be an instrument of social change? How does the future look for SBI Bank now that other banks are also increasingly positioning themselves as players in the sustainable economy sector? Can the bank still continue to fulfill its mandate to strive for social objectives? Peter Blom is convinced it can. According to him, many other banks entering the sustainability space also invest billions in companies that dont in any way contribute to a better world. And there are issues of transparency too. He believes that the bank can profit from economies of scale. As of now, SBI continues with its strong belief that it is the individual who can bring about real change in the society and hopes to remain a platform for people who want to make a difference in the world. If you follow bank stocks, you might have heard the recent news that some of the largest banks in the country are planning to raise their dividends for shareholders and buy back more shares to prop up their stock price. Instead of reinvesting in programs to benefit the community and the environment, these banks are aiming to reward executives and insiders who own boatloads of shares. If you follow bank stocks, you might have heard the recent news that some of the largest banks in the country are planning to raise their dividends for shareholders and buy back more shares to prop up their stock price. Instead of reinvesting in programs to benefit the community and the environment, these banks are aiming to reward executives and insiders who own boatloads of shares. Does this news mean we are returning to the days of selfish and reckless banking? No way
The American taxpayer, and consumers in general, wont let that happen. The day and age of responsible banking from more ethical banks is here to stay. It might not happen overnight, but the momentum gained in the last couple of years in reeling in out-ofcontrol banks is too strong to go away. People expect more from their banks today. The disdain for unethical and irresponsible banking also coincides with the emergence of technological innovation and eco-friendly banking.

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THE OPPORTUNITIES
The Green banking, on one hand it provides challenges to the banks and on the other hand it provide many opportunities as well. It is strongly believed that within the foreseeable future carbon will have a price tag attached to it. And it gives banks a role to play in transition to a low carbon economy. Banks may formulate innovative financial solutions and re design the existing ones so as to incorporate environmental perspectives. Some areas of development could be:

Green financial products

Loans with financial concessions to companies which undertake environmental friendly projects such as manufacturers of fuel efficient automobiles, solar and wind equipment etc. Banks can also introduce a Green Fund to provide climate conscious customers the option of investing in environmental friendly projects. Besides introducing specific green banking products, banks can incorporate an Environmental Impact Assessment (EIA) in their project appraisal while financing any project to measure the nature and magnitude of environmental impact as well as suggest environmental risk mitigation measures. Carbon credit business- Indian banks can involve themselves in carbon credit business, wherein they can provide all the services in the area of Clean development Mechanisms (CDMs) and carbon credits including services of identification and funding of CDM projects, advisory services for registration of CDM projects and commercialization of CERs under different structures to meet the requirements of its customers, acting as an intermediary for buying certified Emission Reductions CERs on behalf of end-users or carbon funds, financing against CERs and CERs receivables, and other related banking services. As India has huge potential for carbon credit business, Indian banks can set up dedicated carbon credit cells to capture a major share of this carbon credit business.

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CONFRONTING CHALLENGES TO GOING GREEN

Green banks support wonderful causes; they do face a lot of challenges as for-profit entities. Just like those socially conscious and environmental mutual funds, they are expected to encounter more obstacles than typical run-of-the-mill bank.

(i)

Diversification matters
Green banks will be screening their customers and naturally, theyll be limiting and restricting their business to those entities that qualify. With a smaller pool of customers, theyll automatically have a smaller profit base to support them. If they focus their loans on certain industries, they open themselves up to being much more vulnerable to economic shifts.

(ii)

These banks are still startups

Apparently, it takes 3 to 4 years for a typical bank to start making money. Many green banks in business today are very new and are still in startup mode. It doesnt help that these banks are trying to get their footing during a recession.

(iii)

Banks are specialized

Again, while the main goal of a green bank is to do good by supporting those who are taking care of the environment, the question here is just how much money is there in these businesses and in the eco-friendly industry? Saving the environment does not necessarily equate to making a profit. Hopefully though, this premise is proven wrong in this case and that green banks prove that they can survive, even as they face restrictive requirements for doing business.

(iv)

Operating expenses and costs

Operating expenses and costs are higher Green banks require specialized talent, skills and expertise as well, due to the kind of customers they are servicing. Employees, such as loan officers, need to have additional background and experience in dealing with green businesses and consumers. Plus, giving breaks to such clients via discounted loan rates can eat at their profit margins.

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(v) 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

STEPS IN GREEN BANKING

From the empirical study, it is found that following are some of the steps that can be taken for going green in banking:

1. Go Online
Online banking is the developing concept in young and corporate India. Online banking helps in additional conservation of energy and natural resources. Online Banking includes: A. Paying bills online, B. Remote deposit, C. Online fund transfers and D. Online statements It creates savings from less paper, less energy, and less expenditure of natural resources from banking activities. Customers can save money be avoiding late payments of fees and save time by avoiding standing to queues and paying the bill from home online.

2. Use Green Checking Accounts

Customers can check their accounts on ATM or special touch screens in the banks. This can be called as green checking of account. Using a green checking account helps the environment by utilizing more online banking services including online bill payment, debit cards, and online statements. Banks should promote green checking by giving some incentives to customers by giving higher rate of interests, waiver or discount in fees etc.

3. Use Green Loans for Home Improvements

The Ministry of Non-renewable Resource in association with some nationalized and scheduled banks undertook an initiative to go green by paying low interest loans to the customers who would like to buy solar equipments. The rate of interest is as low as 4% p.a. Before you undertake a major home improvement project, study if the project can be done in an eco-friendly manner and if

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you might qualify for a green loan from a bank Green loan are perfect for energysaving project around the house. The new Green Home Loan Scheme from SBI, for instance, will support environmentally friendly residential projects and offer various concessions. These loans will be sanctioned for projects rated by the Indian Green Building Council (IGBC) and offer several financial benefits a 5 percent concession in margin, 0.25 percent concession in interest rate and processing fee waiver.

4. Power Savings Equipments

Banks can directly contribute to controlling climate change and as an initial step they intend to start a campaign to replace all fused GSL bulbs, in all owned premises offices and residential. Banks can also make a feasibility study to make rain water harvesting mandatory in all the Bank's owned premises. In December 2009 Indusind Bank inaugurated Mumbai's first solar-powered ATM as part of its 'Green Office Project' campaign titled 'Hum aur Hariyali'. A new study by PricewaterhouseCoopers (PwC) commissioned by the Indian Banks Association (IBA) and The Climate Group confirms that India's leading banks are recognizing and seizing opportunities in an emerging low carbon economy. Energy Star rated computers, equipment and appliances should be purchased for new and replacement electronic devices.

5. Use Green Credit Cards

Some of the banks introduced Green Credit Card. The benefit of using a green credit card is that banks will donate funds to an environment-friendly non-profit organization from every rupee you spend on your credit card to a worthwhile cause of environment protection.

6. Save Paper
Bank should purchase recycled paper products with the highest post-consumer waste content possible. This includes monthly statements, brochures, ATM receipts, annual reports, newsletters, copy paper, envelopes etc. Whenever available, vegetable-based inks are used instead of less environmentally friendly oilbased inks. The State Bank of India (SBI) on launched its 'Green Banking Policy' in the Bengal circle. Aiming at paperless banking, the SBI has selected four of its branch in Kolkata and Howrah to introduce Point-of-Sales (POS) terminals, Suriender Kumar, chief general manager, Bengal circle, SBI, said, We want to contribute in cleaning our environment. The plan to introduce POS terminal is to ensure paperless banking.

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Customers can deposit as well as withdraw cash from these terminals. The SBI has planned to introduce five lakh POS terminals across the country in next three to five years to serve customers without using papers.

7. Use of Solar and Wind Energy

Using solar and wind energy is one of the noble cause for going green. State Bank of India (SBI) has become the first bank in the country to venture into generation of green power by installing windmills for captive use. As part of its green banking initiative, SBI has installed 10 windmills with an aggregate capacity of 15 MW in the states of Tamil Nadu, Maharashtra and Gujarat . According to SBI chairman OPBhatt SBI planned to install an additional 20 MW capacity of windmills in Gujarat soon and touch 100 MW power generation through windmills within five years. At present, the bank consumes 100 MW of power per year. So, we will try to be energy neutral and reduce our carbon footprints.

8. Mobile Banking
Mobile banking is tricky. On the one hand, it is great to have the ability to check balances, transfer funds or pay bills from you phone. One the other hand, it saves time and energy of the customers. It also helps in reducing use of energy and paper of the bank. Most of the Indian banks introduced this paper-less facility.

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GREEN BANKING PRODUCTS

Green Mortgages
Green mortgages allow home buyers to add as much as an additional 15% of the price of your house into your loan for upgrades including energy-efficient windows, solar panels, or water heaters. The savings in your monthly energy bills can offset the higher monthly mortgage payments and save you money in the long run. The Energy Efficient Mortgage (EEM)is a type of HUD-approved green mortgage that will credit you for your homes energy efficiency in the mortgage itself. Banks offering these green mortgages will give qualified-HUD borrowers the opportunity to finance cost-effective, energy-saving improvements to their house. If you are undertaking an energy-saving house project, shop around for a bank that will offer a great deal on a green mortgage.

Green Credit Cards

A green credit card allows cardholders to earn rewards or points which can be redeemed for contributions to eco-friendly charitable organizations. These cards offer an excellent incentive for consumers to use their green card for their expensive purchases. Imagine the millions of dollars that could be raised for environmental groups if green credit cards really took off.
Green Banking Products And Providing Banks

Green Loans Wainwright Bank Borrowers needing to finance an energy efficient home improvement can find a reduced home equity loan rate from Wainwright Bank. A 0.50% rate reduction for a regular home equity loan is

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available to customers who set up automatic payments from Wainwright Bank checking accounts. Loans are fixed rate with terms of 5, 10 or 15 years. Energy efficient home improvement projects can also have some federal tax benefits. Green $ense Rewards Citizens Bank The Citizens Bank Green$ense checking account will pay you ten cents every time you make a paperless transaction in your checking account. This can be a significant amount of paper saved for active bank customers who use a debit card, pay bills online, and set up automatic payments. You can earn up to $120 a year in rewards from Citizens Bank and guess what? The debit card that they send for your account is made out of recycled plastic.

Saving with a Green Account Bank of Utah The I Save Online Savings Account from Bank of Utah motivates you to help the environment by charging fees for any employee-assisted transaction. This can be perfect form of motivation to encourage some people to bank online. The account requires a Bank of Utah personal checking account, online Banking and eStatements. Each month only six pre-authorized, automatic, telebank or e-transfer debits are allowed. The minimum opening deposit is $100 and a $100 balance must be maintained to avoid service fees. Striving to be a Totally Green Bank Green Bank This Texas-based bank has made a promise to act in environmentally and socially-responsible ways to support and strengthen the communities where they operate. Instead of only offering a few green banking products, Green Bank is adopting an eco-friendly mission for the bank from top to bottom. Products include green loans, green mortgages, green checking and green money market accounts. The Green Bank website also includes educational resources and a carbon footprint calculator. Seven Green Bank branch offices exist in the Houston and Austin area. The products those are manufactured through green technology and that caused no environmental hazards are called green products. Promotion of green technology and green products is necessary for conservation of natural resources and sustainable development.

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We can define green products by following measures: Products those are originally grown, Products those are recyclable, reusable and biodegradable, Products with natural ingredients, Products containing recycled contents, non-toxic chemical, Products contents under approved chemical, Products that do not harm or pollute the environment, Products that will not be tested on animals, Products that have eco-friendly packaging i.e. reusable,

KINDS OF ACCOUNT
When Green Bank customers make deposits or open new accounts, we reward them and our communities by making donations to area environmental non-profit agencies.

Citizens Environmental Coalition

Citizens Environmental Coalition (CEC) is an alliance of more than 100 non-profit organizations working to improve the environment and quality of life in the HoustonGalveston area. These agencies are eligible for donations when their supporters bank with Green Bank. We offer two programs that trigger donations when a community friend opens a checking or money market account or a certificate of deposit. Agencies affiliated with Citizens Environmental Coalition are eligible to promote the new programs to their supporters; up to $250 will be donated in recognition of each donors new accounts and deposits with Green Bank. 50k/$50 CD. For every $50,000 invested in 12-month or longer CDs, Green Bank will donate $50. Check Out Houstons Green Groups. With the opening of a new business or personal checking or money market account, Green Bank will donate $50

Simple Account Structure

Theres no need to make matters complicated. At Green Bank, we offer one kind of account for consumers and two for businesses. And we offer one kind of money market account. All are outstanding. In other words, we have taken a closet of printed material and reduced it to a cabinet, significantly reducing the number of monthly reports you have to review and the amount of paper that will need to be recycled. Personal Checking Commercial Checking Personal Savings Commercial Savings

1 Personal Checking

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Keep on top of account balances by using our no-cost online banking system or by calling our 24-hour telephone banking system. Transfers between accounts can be completed (at no charge) by using one of these services as well.Why complicate things? At Green Bank, we offer two checking account choicesGreen Choice Checking or Eco Checking. Simplicity makes both spectacular. Either way, VISA Debit Cards are available, plus there is no charge for Online Banking, Online Bill Pay or our 24-hour phone banking system. And with the Green Choice Checking Account, we will refund the surcharge that other banks charge for using their ATM machines in the US. CONSUMER ACCOUNTS Eco Checking Minimum to $100.00 Open Interest Tiers by Noninterest Balance earning account CHECKING Green Choice Checking $100.00

$0 to $24,999 $25,000 to $99,999 $100,000 and over None Calculated on Interest daily ledger Information balance; paid monthly $500.00 average $5,000.00 average Minimum ledger combined Balance or ledger balance deposit balances Requirements to Avoid Service Charge $5.00 per month $10.00 per month Service Charge None None Transaction Limits & Charges Unlimited; US Surcharge auto- None only refunds for NonGreen Bank ATM withdrawals at None Green Bank $1.00 ATM NonGreen Bank Transaction Fee ATM Not available Images in Check Images statements Green Choice Checking

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Our interest-bearing Green Choice Checking includes all the basics, and then some. Like no-cost ATM usage at any machine. Either unlimited check writing (with paper statements) or all-electronic banking, including electronic statements. Its your choice. Green Choice Checking Benefits Include: $100 minimum to open No service charge Balances: $0.00 $24,999.99 $25,000.00 99,999.99 $100,000 and above Limitations: None Features: Free: Online Banking Bill Pay E-Statements or Paper Statements Visa Debit Card Available ATM Transactions No Charge Any Green Bank ATM Auto Refund We automatically refund outrageous fees other banks charge Eco Checking Designed with ecology in mindthe Eco Checking account includes online banking at no cost and monthly electronic statements. Its also designed with economy in mindthe $5.00 monthly service charge will not apply if you maintain a $500 average ledger balance. Features: $100 minimum to open Online Banking Bill Pay E-Statements or Paper Statements Visa Debit Card available ATM Transactions $1 charge for using a non-Green Bank ATM; other banks surcharge also applies Overdraft services Link your checking account to another account--checking, savings or money market account. Transfers from savings or money markets are subject to transaction limitations. There is no fee for the transfer between accounts and no NSF fee charged. Apply for Check Plus Line of Credit there is no fee unless the Check Plus LOC is used; NSF fee is not charged. Keep on top of account balances by using our no-cost online banking system or by calling our 24 hour telephone banking system. Transfers between accounts can be completed (at no charge) by using one of these services as well.

o o o o

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2 Commercial Checking
Some banks try to cram your business checking needs into one of their offerings. And some banks have so many choices, you never find the one that fits because of the restrictive parameters. Green Bank has figured out a balanced approach that is consistent with our philosophy - stick with the basics but include the extras. And we think we've got it nailed. Business Checking Account (unlimited FDIC insurance) Business Checking with Interest (200 no-cost transactions per month and a great rate) Business Money Market (up to 6 transactions a month with a leading rate) Business Checking Account
Designed for businesses of all sizes, our Business Checking Account offers the flexibility of unlimited transactions, access to a variety of cash management services and an earnings credit rate (ECR) allowance based on maintained account balances. This allowance can be used to offset monthly processing fees and reduce checking account expenses. You get to keep more money in your account and in your pocket.

Free online banking (single sign-on) (Demo, Set up online banking) Your choice of electronic or printed monthly statements VISA Business Debit Card(s) available (subject to approval) Unlimited ATM transactions No fee at any Green Bank ATM Refunds of transaction fees from ATM machines at other banks Transaction charges may be offset by compensating balances through Account Analysis Overdraft services available by linking to a Green Money Market Account (transfer limitations apply) or Business Line of Credit (subject to approval). Bill Pay Service charged through Account Analysis An Earnings Credit Rate That Is 6x The Average Rate. Earnings Credit is interest paid on your deposits that is used to reduce or eliminate monthly bank service charges. Most often, the rate paid is pegged to the U.S. Treasury Bill Rate. Green Banks ECR is 1.50%. We offer a full complement of treasury management services. Talk to one of our specialists to receive an account analysis to predict your monthly banking expenses.

Features: Free Online banking (single sign-on) (Demo, Set up online banking) Free E-statements or paper statements Free VISA Business Debit Card (subject to approval) Free ATM transactions No charge any Green Bank ATM Auto refund any foreign ATM Product Information: $300.00 minimum to open

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$10.00 monthly service charge may be offset by compensating balances through Account Analysis. Interest Information: Non-applicable Non-interest-bearing Per Item Transaction Charges:

Deposit or Credit Check or Debit Deposited Items

$0.30 $0.15 $0.10

Transaction charges may be offset by compensating balances through Account Analysis. See fee schedule for other applicable charges.

Bill-Pay Service: Charged through Account Analysis $10.00 per month for up to 20 items $0.50 per item charge for more than 20 items Overdraft Services Green Money Market Account (transfer limitation apply) Business Line of Credit (subject to approval and normal advance procedures) To learn more about opening a business checking account, Business Checking with Interest A new account choice for businesses after July 21, 2011, this account offers all the convenience of our Business Checking Account, with the added bonus that it earns interest. And at a pretty compelling rate
This product is designed for those business accounts seeking an interest bearing checking account. It is available to commercial businesses and is geared towards low volume, moderate balance accounts.

Interest Information: Interest calculated on the Daily Ledger Balance and compounded monthly. Tier Balances $0.00 - $99,999.99 $100,000.00 to $499,999.99 $500,000.00 to $1,999,999.99 $2,000,000.00 or more APY* 0.60% 0.60% 0.30% 0.10%

Features: No cost Online Banking (single sign on) Balance inquiry, account transfers and up to 20 bill pay checks

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E-statements Visa Debit Card (subject to No charge ATM transactions at Green Bank ATMs and auto refund at ATMs.

approval) domestic

Product Information: $300 minimum to open $35 monthly service charge (waived if average ledger balance exceeds $20,000) Transactions: 200 debit and/or deposited items allowed at no charge $0.15 for each check or deposit item over 200 Enhanced cash management services, such as ACH origination, online internet wire transfers, positive pay or remote deposit capture will be based on the standard commercial fee schedule and will be hard charged. All ancillary service charges will be hard charged, not analyzed. Business Money Market
Designed for personal or business accounts, the Green Money Market Account offers competitive interest rates and access to your money. A tiered account that compounds monthly, well help you make the most of your savings.

Green Banks Green Money Market Accounts include: Unlimited transfers in person or by ATM Free Online Banking No charge for electronic or paper monthly statements $2,500.00 minimum to open $5,000.00 minimum daily balance to avoid a $15.00 service charge Interest-bearing deposits, FDIC insured to $250,000.00 until December 31, 2013

Personal Savings

How can you align your financial interests with the needs of the planet? Fortunately, the two can exist in harmony. In fact, our customers benefit from being environmentally responsible-better rates and less paper. We have several marketleading options: Green Money Market, savings and minor savings accounts, CDs and IRAstraditional and Roth. Please dont hesitate to call a banker for more information. CONSUMER SAVINGS Green Savings Minor $10.00 Same rate for all balances CONSUMER OR BUSINESS SAVINGS ACCOUNTS Green Green Money Market Savings Account $100.00 $2,500.00 Same rate for $0 to $9,999 all balances $10,000 to $49,999 $50,000 to $99,999 $100,000 to $499,999 $500,000 to $999,999

Minimum to Open Interest Tiers by Balance

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$1,000,000 to $1,999,999 $2,000,000 to $4,999,999 $5,000,000 and over Interest paid Interest paid Calculated on daily quarterly quarterly ledger balance; paid monthly No service $300.00 $5,000.00 minimum charge until average ledger daily balance minor reaches 18 balance during years quarter None $6.00 per $15.00 per month quarter 6 withdrawals 6 withdrawals Transfers to another per quarter; per quarter; account or third parties $2.00 fee per $2.00 fee per by preauthorized, withdrawal over withdrawal automatic, telephone, 6 per quarter over 6 per computer transfer, debit quarter card, check, draft, or similar order are limited to 6 per statement cycle; $15.00 fee per item over limitation per month Not applicable Unlimited; US Unlimited; US only only

Interest Information

Minimum Balance or Requirements to Avoid Service Charge Service Charge Transaction Charges Limits &

Surcharge auto-refunds for NonGreen Bank ATM withdrawals None None Green Bank ATM Not applicable Transaction Fee Not applicable Not applicable Images in statements Check Images *Please see your Green Banker for complete account information. VISA Debit Cards Available. No charge for Consumer Online Banking, Online Bill Pay or 24 Hour Phone Banking. Green Money Market Accounts Looking to make a premium on your savings? Our Green Money Market Account is designed for businesses and individuals who want the high return of an investment account with the liquidity and flexibility of a checking account. This tiered account earns a premium interest rate, compounded monthly. Enjoy some of the highest money market rates and access to your money when you need it.

Product Information: $2,500.00 minimum to open $5,000.00 minimum daily balance to avoid a $15.00 service charge Tier Balances: $0.00 to $9,999.99 $10,000.00 to $49,999.99 $50,000.00 to $99,999.99 $100,000.00 to $499,999.99 $500,000.00 to $999,999.99

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$1,000,000.00 to $1,999,999.99 $2,000,000.00 to $4,999,999.99 $5,000,000.00 and above Limitations: Six transactions from account per statement cycle Unlimited transfers in person or by ATM Features: Free Online Banking Free E-Statements or Paper Statements Certificate Of Deposits
With a Green Bank CD, you can earn a guaranteed rate of interest over a term that you choose. We offer a wide variety of certificates, ranging from seven days to five years. Interest on these accounts can be compounded quarterly, paid monthly by check or transferred to a Green Bank deposit account.

Consider The Advantages Of A Green Bank Cd: A secure, safe place to put your money CDs are not subject to market fluctuations Interest-bearing deposits are generally insured by the FDIC to $250,000.00 IRAS Whats the outlook for your golden years? Whether you want to build a comfortable nest egg or fund something more immediate, we offer IRAs that make it easy to build your savings. Highlights Of Green Bank Individual Retirement Accounts: Terms ranging from 6 months to 5 years Contribution may be tax deductible All earnings are tax deferred until a distribution is taken You have until April 15th of each year to open and fund a Traditional IRA for the prior tax year Minimum of $100.00 to open Since 2008, the limit you may contribute to a regular IRA has been $5,000. However, if you will be 50 or older by the end of the year, you can contribute an extra $1,000, for a $6,000 total contribution limit. Traditional/Rollover Ira: These IRA contributions are generally tax deductible, creating an opportunity for you to save for your future. You also benefit today, by saving on taxes that you might otherwise pay. Plus, your earnings grow tax deferred.

The Eligibility Requirements For A Traditional Ira Are: The individual must be under the age of 70 The individual must have earned compensation

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Roth Ira: The Roth Ira Can Help First-Time Home Buyers Save For A Down Payment. Contributions To A Roth Ira Are Not Tax Deductible, But Withdrawals Are Generally Tax Free, If: You don't begin withdrawals until at least five years after you establish the IRA, and You are at least age 59, or use the funds for a first-time home purchase. (Withdrawals for this purpose are limited to a lifetime cap of $10,000). Withdrawals made prior to age 59 may be subject to a 10% IRS early withdrawal penalty in addition to ordinary income taxes. The IRS 10% penalty does not apply if the equal periodic payments are taken over life expectancy, for at least five years, or upon attainment of age 59, whichever is later, if the withdrawal is used for a firsttime home purchase (lifetime of $10,000 per individual), qualified higher education expenses, certain medical expenses and certain other uses, or in the event of disability or death.

4 Commercial Savings
At Green Bank, we offer a range of rewarding financial deposit products to help your business accounts grow. CDS How long is your investment growing season? A week? A year? Longer? Talk to your Green Banker and well help you cultivate a commercial CD plan that will keep your money growing for as long as you want.

Business CDS With a Green Bank CD, you can earn a guaranteed rate of interest over a term that you choose. We offer a wide variety of certificates, ranging from seven days to five years. Interest on these accounts can be compounded quarterly, paid monthly by check or transferred to a Green Bank deposit account.

The Advantages Include: A secure, safe place to put your money CDs are not subject to market fluctuations. Interest-bearing deposits are FDIC insured to $250,000.00 until December 31, 2013. Money Market Youre looking for an interest-bearing account? With ready access to your money? Plus a higher return on cash reserves? Say no more. Green Money Market Account Designed for personal or business accounts, the Green Money Market Account offers competitive interest rates and access to your money. A tiered account that compounds monthly, well help you make the most of your savings.

Green Banks Green Money Market Accounts Include: Unlimited transfers in person or by ATM Free Online Banking

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No charge for electronic or paper monthly statements $2,500.00 minimum to open $5,000.00 minimum daily balance to avoid a $15.00 service charge

GREEN BANKING - AN AVENUE TO SAFE ENVIRONMENT

While the country's environment is facing threats in various ways hindering sustainable economic growth and endangering human health, experts feel green banking can be an avenue to reduce pollution and safe the environment."Banking sector is one of the major sources of financing for commercial projects which is one of the most important economic activities for economic growth", they felt while speaking in a recent workshop on green banking organized by Bank Asia Ltd marking the World Environment Day. Md. Mehmood Husain, President and Managing Director of the Bank, inaugurated the workshop which was conducted by Dr. Shah Md. Ahsan Habib, Professor & Director (Training) of Bangladesh Institute of Bank Management (BIBM). Senior officials of the Bank located in Dhaka city and concurrently senior officials of Chittagong Zonal Office participated in the workshop through video conferencing which would contribute towards reducing carbonfootprint. Launching the event the President & Managing Director highlighted how the developed countries are embracing initiatives that are conducive for the environment in order to ensure well being of the future generation.

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He informed that Bank plays a critical role in economic development and they are well positioned to undertake Green Banking activities. He reiterated that banks should finance in the sectors that would ensure sustainable and eco-friendly environment. In the workshop Dr. Ahsan Habib provided a cognitive understanding of the concept of Green Banking and highlighted the role played by NGOs, Bank and Financial Institutions (FIs) in the evolution of Green Banking policies & practices. He underscored the importance of taking such initiatives by our Banks and FIs to conserve our environment and natural resources. Green Banking is a Multi-stakeholders' Endeavour where banks have to work closely with government, NGOs, IFIs/IGOs, Central Bank, consumers and business communities to reach the goal. Green Initiatives by banks include internal environment management, environmental Financing/ product ecology, environmental disclosure & reporting, formulating and adopting principles and promoting other stakeholders. The speakers observed that regulatory enforcement by governments, pressure from the civil society and consumers, voluntary supports and responses by the business entities are preconditions to create a congenial atmosphere. A framework of incentives for responsible banks and disincentives for pollutants is an essential element for the development. Meanwhile, Bangladesh Bank issued policy guidelines for developing Green Banking practices and Environmental Risk Management and circulars to handle climate change. Now the Central Bank needs to play a proactive role in guiding green banking initiatives, the speakers felt. They said banks in Bangladesh may work collectively and move forward by undertaking voluntary initiatives. Financing to environment-friendly projects will also help the financial institutions to avert legal, reputation, security and credit risks, they pointed out. At present a growing number of banks have been assessing environmental risk while selecting project for financing. Reduction of paper consumption and waste management, reduction of carbon emission by installing solar panel In the concluding session of the workshop Md. Touhidul Alam Khan, SEVP, Head of Corporate Assets & Client Origination and Team Leader of Green Banking Unit of Bank Asia highlighted the activities undertaken by the Bank and briefed on future course of actions. He informed that Bank Asia has taken number of initiatives regarding the implementation of environmental policies, strategies and program in the area of Green Banking activities. The Bank has conducted activities related to in-house environment management, financed a number of environment friendly projects, created climate risk fund, utilizing online banking facility to serve the clients through alternative delivery channels and has also arranged workshops/training for capacity building and awareness.

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GREEN BANKING IN INDIA

One of the major economic agents influencing overall industrial activity and economic growth is the financial institutions such as banking sector. The banking sector influences the economic growth and development in terms of both quality and quantity, there by changing the nature of economic growth. Banking sector is one of the major sources of financing investment for commercial projects which is one of the most important economic activities for economic growth. Therefore, banking sector can play a crucial role in promoting environmentally sustainable and socially responsible investment (SRI). Banks may not be the polluters themselves but they will probably have a banking relationship with some companies/investment projects that are polluters or could be in future. Banking sector is generally considered as environmental friendly in terms of emissions and pollutions. Internal environmental impact of the banking sector such as use of energy, paper and water are relatively low and clean. Environmental impact of banks is not physically related to their banking activities but with the customers activities. Therefore, environmental impact of banks external activity is huge though difficult to estimate. Moreover, environment management in the banking business is like risk management. It increases the enterprise value and lowers loss ratio as higher quality loan portfolio results in higher earnings. Thus, encouraging environmentally responsible

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investments and prudent lending should be one of the responsibilities of the banking sector. Further, those industries which have already become green and those, which are making serious attempts to grow green, should be accorded priority to lending by the banks. This method of finance can be called as Green Banking, an effort by the banks to make the industries grow green and in the process restore the natural environment. This concept of Green Banking will be mutually beneficial to the banks, industries and the economy. Not only Green Banking will ensure the greening of the industries but it will also facilitate in improving the asset quality of the banks in future Internationally, there is a growing concern about the role of banking and institutional investors for environmentally responsible/socially responsible investment projects. Banking and other financial institutions are more effective towards achieving this goal for the kind of intermediary role they play in any economy and for their potential reach to the number of investors. Environment is no longer the exclusive concern of the government and the direct polluters, but also the other partners and stake- holders in the business like financial institutions such as banking institutions can play a very important role in fostering linkage between economic development and environmental protection. To substantiate, quality of service, the implementation of environmental conservation measures, support to the deprived section of the society, concern about the quality of life and nature are the basic principles that the financial institutions are relying on in their business strategy in recent years. The banking operation targets a certain long-term rate of return on their credit and investment. However, every credit extension and investment caries the risk of non-payment and reduction of value (in case of direct investment) due to environmental liabilities. Therefore, it is of importance to the banking sector to follow certain environmental evaluation of the projects before financing. There are studies showing positive correlation between environmental performance and financial performance (Hamilton, 1995; Hart, 1995; Blacconiere and Pattern,1993). Thus, it is imperative for the financial institutions in the present context to consider environmental performance in deciding whether to invest in companies or advise clients to do so. The formation of different rules for environmental management like resource conservation, clean water act, clean air act, toxic substance control act are also viewed as potentially significant contributor to the recent increase in environmental liability for banking institutions. Adoption of these principles will offer significant benefits to financial institutions, to consumers and also the stake holders. There have been attempts to adopt sustainable development strategies from various quarters at international level. Multilateral agencies, international consortiums, multilateral financial and development institutions have been advocating for environmental standards and strategies to evaluate investment projects. In the recent years, the international organization for standardization (ISO) has issued series of comprehensive guidelines for incorporating environmental protection and pollution prevention objectives into

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industrial activity worldwide, known collectively as ISO 14000. It would certainly give the much needed impetus for the banking industry to expand the use of environmental information in their credit extension and investment decisions. In this backdrop, the paper aims to discuss the issues of sustainability in Banking and how banks can play a role for sustainable growth and development, particularly in the Indian context

GREEN BANKING INITIATIVE TAKEN BY INDIAN BANKS

(SBI) has become the first bank in the country to venture into generation of green power by installing windmills for captive use. As part of its green banking initiative, has installed 10 windmills with an aggregate capacity of 15 MW in the states of Tamil Nadu, Maharashtra and Gujarat. It has planned to install an additional 20 MW capacity of windmills in Gujarat soon and touch 100 MW power generation through windmills within five years, windmills are set up with a definite objective of reducing the dependence on the polluting thermal power and not on purely economic or business considerations. At present, the bank consumes 100 MW of power per year. So, SBI will try to be energy neutral and reduce its carbon footprints. The total cost of installation of a windmill of 1.5 MW is around Rs 10 crore. The operation cost is close to zero and it is expect to recover the initial investment in four years. "Our mission is to make all Indian banks go green and we are already discussing with 25 banks," said Suzlon CMD Tulsi R Tanti. He said, "Suzlon, which currently holds 55% market share in the country is now more focused on wind power

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development. Of the 11,000 MW installed wind energy in India, 6,000 MW has been installed by Suzlon. "There is 45,000 MW wind power potentiality in the country and we will target that market here," Mr. Tanti added. Mr. Bhatt ( Chairman Of SBI) said, the bank will also support the green initiatives of its clients and will offer them finance on priority and at concessionary rates of interest. In India the concept of green banking is catching up and banks are actively looking for methods to portray themselves as a Green Bank.Going green is in fact more than just becoming environment friendly. Going green is looked upon as a way to reduce costs and mitigate risk.Green Banking refers to the initiative by banks to encourage environment friendly investments, to give lending priority to those industries which have already turned green or are trying to grow green and thereby help to restore the natural environment. This initiative of green banking is mutually beneficial to the banks, industries and the economy. Moreover Green banking will ensure that the asset qualities of banks are improved in future. Contrary to the belief, environmental friendly technologies make economic sense for the industries and actually lessen their financial burden as well. The polluting industries face more resistance and often forced to close down or face massive resistance from the public. This adds to their cost enormously. So adopting environmentally sustainable technologies or modes of production is no more considered as a financial burden, rather it brings new business opportunities and higher profit. Green banking optimises costs, reduces the risk, enhance banks reputations and contribute to the common good of environmental sustainability. So it serves both the commercial objective of the bank as well as its social responsibility. Many Indian banks have started to realize the importance and they are taking up various GREEN BANKING initiatives:

IndusInd Bank
"Human aur Hariyali." campaign which introduced solar powered ATM`s. The banks expect to save 1980 Kwh of energy annually. They are also supporting environment friendly finance programmes and providing incentives to go green.

IDIBI Bank
Exclusive group for working on climate change and more specifically carbon credits advisory to the clients to deal with clean development mechanism (CDM), carbon credits of Kyoto protocol and voluntary emission reduction (VERs) authority. Entered into agreements with multilateral agencies and buyers of carbon credit like KfW Bankergruppe, Federal republic of Germany to offer complete range of CDM related services tailor made to suit the needs of the clients.

The State Bank of India

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The State Bank of India has bank operations in many countries including a FDICinsured bank based out of New York, New York. Recent green bank initiatives include a push for solar-powered ATMs, paperless banking for customers, clean energy projects and the building of windmills in rural India. State Bank of India is a leader in green banking. Green home loan scheme which supports environment friendly housing projects and offer subsidy and interest rates reduction.

ICICI bank
50% waiver in processing fee of cars that use alternate mode of energy like electricity and CNG. Cars like Reva, LPG or CNG versions of Tata and Maruti variant

GREEN BANKING: INTERNATIONAL INITIATIVES

Don't be surprised to see a credit amount mentioned in your account with the transaction remark put as "green banking" the next time you see your bank account statement. Yes! the green banking is rewarding! It is not only beneficial for the banks and the economy but for the normal customers like you and me as well. This is one among the most novel and innovative green banking initiatives introduced by banks novel because your bank balance is getting increased and innovative because it is very simple to understand. Every time there is a paperless transaction in the bank, the bank is able to save some money and as a part of green banking initiative a portion of this amount isgiven to its customer. This will encourage more paperless transactions by the customers and in the process help to reduce the carbon footprint as well. It is a win-win-win situation for you, the bank and the environment. The above green banking initiative is implemented by Citizens Bank of Pennsylvania and is known as Green$ense

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The financial sectors growing adherence to environmental management system is attributed to the direct and indirect pressures from international and local Non Governmental Organisations (NGOs), multilateral agencies and in some cases the market through consumers. In the early 1990s, the United Nations Environment Programme (UNEP) launched what is now known as the UNEP Finance Initiative (UNEPFI). Some 200 financial institutions around the globe are signatories of this initiative statement to promote sustainable development within the framework of market mechanisms toward common environmental goals. The objective is to integrate the environmental and social dimension to the financial performance and risk associated with it in the financial sector. As the commitment of this UNEPFI statement goes, sustainable development is regarded basic to the sound business management. It advocates for aprecautionary approach towards environmental management and suggests integrating environmental considerations into the regular business operations, asset management, and other business decisions of the banks. IFCs environmental unit was established in 1991 for reviewing each project for environmental assessment. Similarly, the US Export-Import Bank regularly reviews while financing exports on the ground whether they are environmentally sound. It will be noteworthy to mention that Netherland-based ABNAmro bank has developed certain Reputational Risk Management (RRM) policies to identify, asses and mange non-financial present within it business engagements. Similarly, some of the big international bankslike ABN Amro, Deutsche, Standard Chartered, HSBC Bank etc. look at environment issues discussed under Kyoto Protocol. Going further, the Dutch Government has made a formal request to banks in achieving sustainable development. The dialogue between banks and government was established in 1999 to initiate policies for environmental improvements through the development of new financial products and services. Similalrly, Earth (FoE) and the Rainforest Action Network (RAN) challenged the industry with high-profile campaign that highlighted cases in which commercial banks were bankrolling disasters in 2000 in the US. In 2002, a global coalition of NGOs formed a network named BankTract to promote sustainable finance in the commercial sector. This coalition came up with a resolution constituting six principles promoting environmental protection and social justice by banks and this is popularly known as Collevecchio Declaration. The six principles that his declaration advocated included commitments to sustainability, no-harm, responsibility, accountability, transparency and sustainable market, and governance. More than 200organizations have endorsed this declaration and urged the banks to incorporate these commitments into their business operation. The declaration states that Finance and Commerce has been at the center of a historic detachment between the worlds natural resource base, production and consumption.

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As we reach the boundaries of ecological boundaries of the ecological limit upon which all commerce relies, the financial sector should take its share of responsibility for reversing the effects this detachment has produced. All these concerns for sustainable finance or green finance have compelled the banking institutions to devise a common and coherent set of environmental and social policies and guidelines that can be used to evaluate the projects. A small group of banks along with IFC came together to initiate the process of designing the common guidelines in October 2002 and came up with a guidelines in June 2003 that is known as Equator Principles with 10 leading commercial banks adopting these voluntary set of principles. This equator principle was subsequently updated and the new revised sets of principles are launched in July 2006. The coverage of projects being financed are expanded in this revised set of principles by lowering the finance threshold from $50 million to $10 million. Presently 46 financial institutions from 16 countries with business operation in more than 100 countries have embraced this equator principle. So this principle has become a common standard of project finance that incorporated environmental and social issues in project finance. The activities of the equator banks (banks adopting equator principles) are being reviewed by NGOs worldwide and are being published whenever it is realized that they are not committed to Equator Principle. IFC along with the Financial Times has initiated Sustainable Banking Award since 2006. More than 104 financial institutions out of 151 entries from 51countries have made it to the final lists of award in 2007. The number of banks applying was up by more than 100 per cent compared to the previous year's 48 banks from 28 countries. All the international initiatives towards integrating environmental concerns into business operation of banks are voluntary in nature and are meant to promote a common good of a better ecosystem. Voluntary commitment has its own shortcoming in a competitive market. Unless the market for green money will increase, the lenders will always have an incentive to procrastinate their social commitment and prioritize the commercial interest in the short run. So demand for green money is a precondition of green banking if it will be voluntary. A Government legislation that makes banks accountable for the misdeeds of their clients will help promote green banking.

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THE FUTURE OF GREEN BANKING IS BRIGHT

If you follow bank stocks, you might have heard the recent news that some of the largest banks in the country are planning to raise their dividends for shareholders and buy back more shares to prop up their stock price. Instead of reinvesting in programs to benefit the community and the environment, these banks are aiming to reward executives and insiders who own boatloads of shares. Does this news mean we are returning to the days of selfish and reckless banking? No way. The American taxpayer, and consumers in general, wont let that happen. The day and age of responsible banking from more ethical banks is here to stay. It might not happen overnight, but the momentum gained in the last couple of years in reeling in

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out-of-control banks is too strong to go away. People expect more from their banks today. The disdain for unethical and irresponsible banking also coincides with the emergence of technological innovation and eco-friendly banking. This confluence of new banking ideals is being called green banking and is being led by a number of small banks and technology startups. Heres what to look for in green banking in the near future:

Banks That Care About Sustainable, Ethical Banking

In the wake of the financial crisis that left Americans tired of banks charging high fees and making bad loans, a new breed of banks is emerging. Banks with a social conscience. Banks that apply principles of sustainability and responsibility to their business model, products and operations. A great examples of this new wave of green banking is the recent launch in the Chicago area of Green Choice Bank. Green Choice Bank bought Family Federal Savings of Illinois, a brick-and-mortar bank with an over 100-year history, in 2010. Since then, two branches were retrofitted and a sustainability principle was applied from top-to-bottom at the bank. Steve Sherman, the COO of Green Choice Bank thinks this is just the start. He envisions his bank as serving as an example of what can be done if innovation and entrepreneurship are applied in the banking industry. Instead of trying to copy the larger banks in the Chicago area, his bank is setting an example of what is possible in banking. For consumers this shift towards green banking means that more deposit and loan products will be available through online and mobile banking. It also means better deposit rates on CDs, money market accounts and savings accounts. Green banks should also have lower fees and give rate reductions on loans going towards energyefficient projects. If you are a customer of a green bank you will also see their sustainability principles demonstrated in their buildings, operations and lending principles. This is banking beyond pure profit. Another important aspect of green banking is the involvement and outreach from the individual banks to their local community. This is where a bank can make a real difference. For example, in Chicago Green Choice Bank supports the Green Festival

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in Chicago and the Foresight Sustainable Business Alliance. Other banks like New Resource Bank in San Franciso and Wainwright Bank in Boston have made commitments to local environment projects. Doesnt this sound like the type of banks you would like to keep you on money on deposit with?

Mobile Banking And Mobile Payments

In many parts of the world, mobile banking provides a solution to the problem of bringing financial services to the rural poor. Countries like India, China and Bangladesh have put more resources into developing mobile infrastructure than improving landlines. The environmental benefit of a push towards more mobile banking is enormous, but there is also a societal benefit. For instance, in India banking initiatives launched by State Bank of India (SBI) have enabled millions of Indians to use their mobile phones to bank in areas where there are no branch offices. The unbanked or under banked living in rural areas now have the ability to tap into many of the same resources as people living in metropolitan areas. Even more important, mobile banking is proving to be one answer in the fight against poverty. Helen DeBorg is a market analyst who covers mobile banking for RFPconnect.com in the United Kingdom. She notes the importance of mobile communication in the recent uprisings against repressive governments in North Africa. It would appear that the reliance on mobile devices will only increase in these countries and that mobile banking will continue to spread. In a strange paradox, a country with some of the most advanced technology in the world, the United States, has been slower to adopt mobile banking. That is starting to change this year with the popularity of the iPhone and iPad, but the U.S. still lags Asia and Europe. Commenting on the implementation of mobile banking in the U.S., Helen Deborg stated: I think U.S. is a country of contrasts where internet and mobile banking coexist in constant arms race. The highly developed and sophisticated technology market of the U.S. underrated importance of mobile banking considering it as a small fry not worth spending much of time and effort. The picture has changed recently. For example

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research by Nielsen Company shows that mobile payment and banking services as a whole have enjoyed 129 percent growth in the U.S. for the last two years. Mobile banking in US is positioned to grow even more because of greater footprint it may give reaching out all levels of the society. Beyond using a smartphone to check bank account balances and transfer money, a whole new revolution has started in the payments world. Mobile technology has now advanced far enough that mobile payments, once a dream of the past, is now a reality. The market to process payments by phones is about to see a huge amount of competition between all the big players like PayPal, Google, Apple, credit companies and major banks. Even startups like, Square, are capturing the attention of the public and investors as more innovative payments solutions come to the market almost daily. For consumers, using mobile payments is about convenience and the ability to pay-itgreen. It goes with saying that paying for our coffee, newspaper or taxi ride by swiping our phone makes life easier. It isnt that far off that smartphones could actually replacing you wallet or purse that is stuffed with credit and debit cards! Encryption and security actually make it a safe payment alternative. Mobile payments is also a green solution that helps the environment. Every time we pay a will without using paper, mail and human processing, we save natural resources.

Banking Across Borders

As green banking morphs and starts to become a real movement, look for more countries to join the bandwagon. Large multinational banks like ING Direct and HSBC Bank have the ability to really accelerate the green banking movement by changing their products, philosophy and drive to sustainability across borders. First, online banking, and now, mobile banking, has empowered the consumer to make informed banking decisions. This will not change, it will get more advanced. As more countries adopt mobile banking, online banking and sustainability; green banks will be the leaders.

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Dont get left behind, find a green bank today. In future the Green banking will become the order of the day. And we expect a lot of associated green products, green services and green regulations would come into picture.

Recognize and reward the environment conscious financial institutions- The Reserve Bank of India or regulatory authority will recognize and reward the environment conscious providers of green loans on an annual basis. By doing this environmentally irresponsible firms may run the risk of hurting their bottom-line as well as their image in the market. GRISIL - Green Rating and Information Services of India Ltd - Green rating agencies will be set up to provide green analysis of lenders and users of green loans via different ratings. Eco friendly Investment funds - Green mutual funds will be in markets and climate conscious customers can invest in environment friendly projects. Moreover investment in these would attract tax concessions as well. Green insurance - The IRDA shall come up with green insurance in which cover is provided for different kinds of environmental risks

GREEN BANKING OR ETHICAL BANKING - WHAT'S THE DIFFERENCE?

There are two types of eco-friendly banking - green banking and ethical banking. The difference between the two is simple, but it often gets blurred. Green banking concerns the day-to-day management of your finances, in terms of being sent paper statements, your bank having a network of branches - using the energy it takes to run them - and "green" initiatives, such as the bank taking steps to reduce its carbon footprint.

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In a nutshell, green banking means using all of the banks resources with responsibility and care, avoiding waste and giving priority to choices that take sustainability into account. A 2008 survey from Javelin Strategy & Research found that 57% of consumers expressed interest in green banking initiatives, and that one-third of consumers who turned off their paper statements said they did so in order to reduce their impact on the environment. Ethical banking looks at the wider picture, with banks considering the social and environmental impact of their investments and loans. An ethical bank will seek to generate returns by investing in virtuous companies, for example, those involved in solar and wind power or organisations which are part of the Fairtrade foundation, or else businesses that promote or practice environmentally and socially conscious business strategies.

Which Is Better?
When it comes to choosing an eco-friendly option for your savings, it really is a matter of personal opinion. While green banking will show that you are conscientious about "doing your bit" today, ethical banking will show that you are more concerned about the long-term impact of how your finances are used by the bank. If you want to be really eco-friendly, there's nothing to stop you banking and saving with both.

Green Banking
If a building society or bank deems itself to be "green" this generally means it operates a day-to-day business that is environmentally friendly. This might include measures such as using recycled paper for postal correspondence, powering branches with renewable energy, encouraging paperless statements or planting trees to reduce the companys carbon footprint.

Ethical Banking
Banks and building societies make profit by lending your money to third parties, charging a rate of interest higher than they pay you on your savings. What were often unaware of, though, is to which companies our bank is lending. For example, your money could be loaned to companies involved in the fur trade, arms dealers, or multi-national companies with poor environmental records, or otherwise guilty of human rights abuses in less-developed countries.

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Functioning on the principle that funds are only invested into businesses that can prove that they wont harm the environment, people, animals or wildlife, the idea behind ethical banking is that the money you deposit with your institution is only invested in pro-eco firms. The first of its kind, in 1992, The Co-Operative Bank launched its ethical policy, available on its website, which provides transparency on which type of company they will and wont lend to.

FIRST GREEN BANK

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Ken LaRoe had just sold a bank (Florida Choice Bank in Mount Dora) and was driving cross-country with his family. He was reading "Let My People Go Surfing," by Yvon Chouinard, the founder and owner of Patagonia, and trying to decide what to do for a career encore. "I wanted to do more than start a bank; I wanted to start a bank that would make a difference," LaRoe says. That difference would be environmental sustainability. "I used to say I was a rabid environmentalist, but that didn't sit well with customers and shareholders. Now I say I'm a committed environmentalist." Executives at First Green Bank, which opened in 2009, are keenly aware of the need to live up to that handle. "We want to be a true green bank," says Paul Rountree, the bank's president. "We want to be sure that we're never questioned to be greenwashing. When you have that name, you have to validate it through your actions." The new Mount Dora headquarters is a LEED (Leadership in Energy and Environmental Design) Platinum building. Sixty solar panels cover the roof and provide 14.4 kilowatts of power, which is not a lot, but the building is also designed to consume as little electricity as possible. The bank recently moved from a 4,000square-foot building to a 12,000-square-foot building and the power use is the same. The roof of the building is a unique butterfly design pitched so that water runs to the center and flows through a spout into an 80,000-gallon cistern. That collected rainwater is used to irrigate the planters outside and provide indoor plumbing. Another section of the roof is an 1,800-square-foot garden planted with native wildflowers. It's used for events and employee breaks. The vegetation insulates the building, reducing the heating required. In choosing a location for the new headquarters, First Green's founders wanted a spot that would disturb the fewest trees. The pine trees that were cut down for the

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construction were used for flooring and a boardroom table. The ceilings are made from cedar from a building that was torn down nearby. Meeting LEED standards doesn't provide tangible benefits to a business, Rountree says, "just the joy of knowing you're doing something right." LEED is a point system, and points can be gathered in several categories, such as use of rapidly renewable materials. "It's not very green to order furniture from China," Rountree says. The wood used in the construction was from locally harvested trees and processed at a mill within 15 minutes of the site. First Green's parking lots all have charging stations for electric and hybrid cars, for use by employees and customers. Its couriers, who pick up deposits from customers, use hybrid cars. Another hybrid car is an employee loaner vehicle, which any employee can sign out when they want, for any reason. It's constantly out on loan. Employees are also urged to drive high-mileage cars, and offered 0% loans on them. The exterior lighting at the headquarters is low-wattage LED. It produces no "light pollution" because the bulbs project straight down rather than causing a glow. The bank uses Florida-friendly, drought-tolerant landscaping. The fieldstone used in the building is a local product. The roof's large overhangs prevent direct sunlight from overheating the building. The large windows mean there's little lighting needed. The flooring in the company gym is a cork/rubber composite that's 100% recycled. A juice bar offering local coffees and juices has countertops made of recycled counterfeit money shredded by the Fed. When First Green does purchase wood, it's bamboo, which is rapidly renewable; the ceilings are mostly made of bamboo. The bank tries to hold paperless meetings. Executives such as commercial lenders and senior management are given iPads loaded up with all documents to be reviewed. "In banking, every meeting - especially board meetings but also loan committee meetings - can involve inches of paper per person," Rountree says. "Every commercial loan package that's presented is about an inch thick. If you have 10 lenders in the room, you can imagine the amount of paper we reduce by having iPads available for those meetings. Not only are we saving paper, we're saving power from the copy machines, the heat those machines put out and the time of people making all those copies." First Green provides e-statements to customers and electronic pay stubs to employees.

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Videoconferencing is also used to hold bankwide virtual staff meetings without requiring employees to travel, thus burning less fuel. The bank plans to use iPads as part of its videoconferencing this year. First Green makes discounted residential construction loans to projects with some level of green certification and believes it is attracting customers that way. It is considering making a future office a net-zero building. "This would give us an opportunity to weigh that against LEED platinum," Rountree says. First Green was one of the last banks to receive a charter. "We think the reason we got our charter has a lot to do with social good," Rountree says.

LIST OF GREEN BANKING IN FOREIGN

1 Crdit Agricole
A strong international presence Crdit Agricole is active in all segments of banking and finance. It is the leading bank in Europe, ranked by retail banking revenues. It is No. 1 in France, No. 3 in Europe and No. 9 worldwide in terms of Tier 1 equity. Crdit Agricole is active in over 70 countries, with more than 160,000 employees. Green banking is an alternative way to conduct banking business. Crdit Agricole better-placed than others in the banking sector to lay claim to this approach owing to: Its origins Credit Agricole was created by the merger of Local Banks dedicated to providing financing to farmers. Its organisation and culture Crdit Agricole is not like other banks. It is built on a mutualist base consisting of 39 Regional Banks, which are owned by over 6 million members via 2,459 Local Banks. Collectively, the 39 Regional Banks own a 55.2% stake in Crdit Agricole S.A., which oversees the Group's business lines and subsidiaries. Through this organisation, the Crdit Agricole Group serves human values and the real economy. Identity Commonly designated as "the Green Bank" in the media, Crdit Agricole has adopted green as its identifying colour. For Crdit Agricole, green is not just a colour or a trend: it represents a strategic focus and values.

2. PNC Bank
PNC Bank is a large FDIC-insured bank in the United States. PNC offers on the most creative green banking products available with their Virtual Wallet account full of innovative tools to help you manage your money, organize and pay bills, and spend and save money

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3. HSBC Bank
HSBC Bank is an international bank that has branches across the world. You can find HSBC Bank active in green banking initiatives in Malaysia, England, Hong Kong, United States and more locations. HSBC Bank offers a high-yielding online savings account through their FDIC-insured bank in the United States that can be opened online athsbcdirect.com.

4. Huntington Bank
Green is a passion for me. At a personal level I believe in helping the environment," says Zahid Afzal, chief information officer at Huntington, of Columbus, Ohio. Afzal has regular status meetings with CEO Stephen Steinour about green initiatives. One, called Green2Green, aims to reduce paper use 95% bankwide by 2014. "All our lending systems, lending processes, commercial, consumer and mortgage systems are being replaced. It's a huge effort we're already working on," Afzal says. "On the commercial side we're already there. On the consumer side we've got one conversion going on now that will be finished in July of this year. A second one will be finished late next year. "The single greenest activity at the bank is solar energy.

5. CITI
Citigroup, which was one of America's Greenest Banks last year, has been shrinking its data center footprint. In 2004 it had 64 data centers. Today it has 21. "We've done a lot of construction since then and added several data centers, but in the process we've closed many older, less efficient data centers," says Jim Carney, managing director, Global Data Center Strategic Planning. Next year Citi expects to open a site in Mexico but close others, lowering the count to 20.

6. U.S. Bank
U.S. Bank, which also made Bank Technology News' 2011 America's Greenest Banks list, has stayed green through a variety of efforts, including server consolidation and virtualization, telecommuting and recycling.

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7. Hang Seng Bank

As a Green Banking customer, you will enjoy a Monthly Fee Waiver during your period of studies and the first three years immediately after your graduation. The Monthly Service Fee will be based on your Total Relationship Balance over the past calendar month. (1) Applicable to all full-time university/tertiary students who are attending the courses offered by the following accredited education institutions and their subsidiaries: accredited universities in Hong Kong, The Hong Kong Institute of Education, Chu Hai College of Higher Education, Vocational Training Council, The Hong Kong Institute of Vocational Education, Hang Seng School of Commerce, Hang Seng Management College, The Hong Kong Academy for Performing Arts, Caritas Institute of Higher Education (formerly known as Caritas Francis Hsu College), Caritas Bianchi College of Careers, Hong Kong Institute of Technology and Hong Kong College of Technology. (2) Hong Kong Dollar Savings Account and Hong Kong Dollar Current Account are designated basic accounts for the integrated account services. (3) The Integrated Account of Green Banking will be upgraded to Integrated Account of Preferred Banking automatically after customers' graduation, and additional monthly fee waiver for the three years immediately after their graduation will be offered.Standard monthly fee for Integrated Account of Preferred Banking will be applied from the 37th month after their graduation. (Automatic Upgrade to Integrated Account of Preferred Banking and the relevant monthly fee is only applicable to customers who opened Adult Integrated Account of Green Banking from 8th March 2010 onwards. Customers who opened their Integrated Account of Green Banking on or before 7th March 2010 and continue to hold the said account will be eligible for monthly fee waiver for the three years immediately after their graduation, and standard monthly fee for Integrated Account will be applied from the 37th month after their graduation.) For more details about the monthly fee, please contact our Bank staff. (4) The Total Relationship Balance is the monthly aggregate balance of the daily average of all deposits, gold accounts, securities, investment funds, utilized overdraft facilities, credit card cash advances, outstanding balance of personal loans and the accumulated premiums paid for the designated life insurance plans distributed by Hang Seng Bank as an agent as well as Hang Seng MPF balance. For sole name Integrated Account holders, their other joint name account(s) will also be included. Note:

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Hang Seng Bank Limited (the "Bank") reserves the right to suspend, vary or discontinue any offers and services at anytime without further notice. The Bank also reserves the right to revise any interest rates, fees and charges from time to time subject to the Bank's notice for any such variation. In case of dispute, the decision of the Bank shall be final. Green Banking for Customers Aged Under 18 If you are aged under 18, the Green Banking services you can enjoy include: Hong Kong Dollar and Foreign Currency Statement Savings Service ATM Card and EPS service e-Banking Service e-Statement / e-Advice Service 24-Hour Automated Phone Banking Service Green Banking customers aged under 18 can enjoy a monthly fee waiver during university studies and the first three years immediately after graduation. When you reach the age of 18, simply logon e-Banking or present your adult Identity Card at any branch to upgrade to an adult Green Banking, and you will enjoy a wider range of services and auto Integrated Account Upgrade service. (1)The Bank reserves the right to apply the standard monthly fee of Integrated Account upon further notice if the customers continue to hold the said account after the fee waiver period. Note: Hang Seng Bank Limited (the "Bank") reserves the right to suspend, vary or discontinue any offers and services at anytime without further notice. The Bank also reserves the right to revise any interest rates, fees and charges from time to time subject to the Bank's notice for any such variation. In case of dispute, the decision of the Bank shall be final.

9 DNB
Green equity funds DNB manages the Nordic regions oldest and largest environmental fund, DNB Renewable Energy, which invests primarily in Norwegian and international companies which employ new technology to produce and use cleaner energy sources,

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increase energy efficiency and promote growth in the renewable energy sector.The equity fund DNB Grnt Norden invests in companies which have a positive environmental profile and does not invest in, for example, oil production companies. Nringseiendom DNB Nringseiendom gives customers real environmental choices by offering energy-efficient commercial properties and give priority to investments in new buildings which meet the classification requirements for Excellent in BREEAM (BREEAM: Building, Research, Establishment - Environment Assessment Method) or corresponding classification systems. Green car loans DNB offers loans with discounted interest rates for cars which do not harm the environment to the same extent as conventional cars. This applies, for example, to electric cars, ethanol cars, natural/biogas cars or petrol or diesel cars, including hybrid cars, which have maximum emissions of 120 grams CO2 per kilometer. Diesel cars must have particle filters. Paperless services The Group is offering a growing range of paperless services which reduce environmental harm. 'DNB will offer electronic signing for more types of loans and various account products. All agreements which are signed electronically, will be offered to customers in a simple and secure manner and will be easily retrievable in the customers electronic file.If a dialogue between the customer and DNB is required, electronic channels such as e-mail, SMS and online chat will as far as possible be used.

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LITERATURE REVIEW
There are studies showing positive correlation between environmental performance and financial performance (Hamilton, 1995; Hart, 1995; Blacconiere and Pattern, 1993). Thus, it is imperative for the banking institutions in the present context to consider environmental performance in deciding whether to invest in companies or advise clients to do so. The formation of different rules for environmental management like resource conservation, clean water act, clean air act, toxic substance control act are also viewed as potentially significant contributor to the recent increase in environmental liability for banking institutions. Adoption of these principles will offer significant benefits to banking institutions, to consumers and also the stakeholders. 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 responsible for actions occurring in which they held a secured interest (Schmidheiny and Zorraquin, 1996 and Ellis, Millians and Bodeau, 1992). 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. 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, 201). 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. The present green consumerism is more concerned with the quality of the products more than the quantity. In future, market will reward those industries or the companies, which emerge as the efficient users of the energy and raw materials and will penalize the less efficient one. Further, the investors in the stock market are equally aware of environmental pollution and would take a stand against those industries/institutions that do not comply with pollution norms (Gupta, 2003; Goldar, 2007). So the preferences of the investors will dry up in the case of polluting units and market capitalization will go down significantly. Thus, financial institutions should help developing the right instruments to meet the needs of industry to control environmental impact. Though Schmidheiny and Zorraquin (1996) concluded that banks are not hindering the achievement of sustainability, banks can also play a hindering role for sustainable development because (i) they prefer short-terms payback periods where as sustainable

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development needs long-term investment (ii) investment which take into account of environmental side-effects usually have lower rate of return in short-term (Jeucken and Bouma, 1999). Therefore, sustainable investments are unlikely to find sufficient funding within current financial markets. Thus, government must design proper legislation of environmental rules for banks and ensure enforcement. The problems in India are the legislation is not yet framed and in few cases, things are not strictly enforced, but things can change overnight resulting in major compliance problems for the companies concerned and increased risk for the banks that have lent to them. There should be continuous dialogue relating to environmental matters with relevant audiences, including stakeholders, employees, customers, governments and the public.

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FINDING ANALYSIS
1)ICICI BANK
ICICI Bank was established in 1994 by the Industrial Credit and Investment Corporation of India, an Indian financial institution, as a wholly owned subsidiary. The parent company was formed in 1955 as a joint-venture of the World Bank, India's public-sector banks and public-sector insurance companies to provide project financing to Indian industry. The bank was initially known as the Industrial Credit and Investment Corporation of India Bank, before it changed its name to the abbreviated ICICI Bank. The parent company was later merged into ICICI Bank. ICICI Bank Limited is an Indian diversified financial services company headquartered in Mumbai, Maharashtra. It is the second largest bank in India by assets and third largest by market capitalization. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank has a network of 2,763 branches and 9,363 ATM's in India, and has a presence in 19 countries, including India. The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The company's UK subsidiary has established branches in Belgium and Germany. ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab National Bank and HDFC Bank.

Green products and services

Instabanking It is the platform that brings together all alternate channels under one umbrella and gives customers the option of banking through Internet banking, i-Mobile banking, IVR Banking. This reduces the carbon footprint of the customers by ensuring they do not have to resort to physical statements or travel to their branches. Vehicle Finance

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As an initiative towards more environment friendly way of life, Auto loans offer 50% waiver on processing fee on car models which uses alternate mode of energy. The models identified for the purpose are, Maruti's LPG version of Maruti 800, Omni and Versa, Hyundai's Santro Eco, Civic Hybrid of Honda, Reva electric cars, Tata Indica CNG and Mahindra Logan CNG versions.

2)Bank of Baroda
Bank of Baroda (BoB) (Hindi: ) is the highest profit-making public sector undertaking (PSU) bank in India and the second largest PSU bank in terms of number of total business in India. It is the country's first largest public sector lender in terms of annual profit. BoB is ranked 715 on Forbes Global 2000 list. BOB has total assets in excess of Rs. 3.58 lakh crores, or Rs. 3,583 billion, a network of 4007 branches (out of which 3914 branches are in India) and offices, and over 2000 ATMs. It plans to open 400 new branches in the coming year. It offers a wide range of banking products and financial services to corporate and retail customers through its delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, credit cards and asset management. Its total global business was Rs. 6,722.48 billion as of 31 March 2012.. Its headquarter is in Baroda and corporate headquarter is in Bandra Kurla Complex Mumbai. Subsidiaries BOB Capital Markets Ltd. (BOBCAPS) is a SEBI-registered investment banking company based in Mumbai, Maharashtra. It is a wholly owned subsidiary of Bank of Baroda. Its financial services portfolio includes Initial Public Offerings, private placement of debts, corporate restructuring, business valuation, mergers and acquisition, project appraisal, loan syndication, institutional equity research and brokerage. Foray into Education The Bank of Baroda has forayed into education with an unique partnership with Manipal University. The duo has started Baroda Manipal School of Banking which offers a Postgraduate Diploma in Banking & Finance (PGDBF) from Manipal University. End of the course, students will be observed as Management Trainees or Specialist officers in Bank of Baroda. The eligibility for this course is determined by a written test followed by group discussion and personal interview. Bank of Baroda financials 2012

Sales Rs. 24,695 crores Profits Rs. 5,006 crores Assets Rs. 3,58,397 crores

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QUESTIONNAIRE
When did green banking started in your banking?
Ans: Green banking started in our bank before two years . We were very excited to introduce green initiatives in our bank. Saving our environment is like saving our human society

What are the advantages of green banking according to you?

Ans: Accepting anything which is related to bank is already an advantage . Saving an environment is step which leads to our safety for human being it not only helps us to save environment but also to save our expenses and give more profit. It helps to gain financial profit

Can you tell what green banking according to you ?

Ans: It is not a service but it is adapting a method were you can not only save enviournment but gain profits . we can easily transact by adapting green banking. Which is also a low cost

Do you think every bank should apply green banking?

Ans: Yes , definitely every bank should adapt green banking , as we get more profits not only in money but in environmental, so according to me every bank should adapt green banking

Are there any R.B.I guidelines in green banking?

Ans: no it is as same as normal banking

How do you motivate your employees to adopt green banking branches?

Ans: We take initiatives in social services like planting trees , cleaning beaches etc. we motivate our employees by inviting some person who are related with nature and know more about environment

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How do you create awareness among the customer to use green banking services?
Ans: We advertise our initiatives for environment. We make sure that our customer makes transaction paperless.

INTERPRETATION

AXIS
10%

PNB
9%

GREEN BANKING

ICICI 23%

BOB 59%

Bank Of Baroda
Bank Of Baroda is the bank which follows green banking because it reduces the cost and time. BOB is providing the service of green banking is more as per compared to other banks.

ICICI Bank
Green banking is new concept in the field of banks so ICICI is providing the services green banking but not to the extent of Bank Of Baroda.

Axis Bank

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As green banking is new concept in the field of banking sector Axis Bank have accepted the green banking but many people are not aware of those services .

Punjab national bank

As green banking is new concept to Indian banks. PNB is a bank which is still developing and as accepting green banking is in process in PNB. Its totally new for them so they have just launched

ANNEXURE
Case Study
Mangalore Mangalore: The State Bank of India has an ambitious plan to cover 700 branches in India under its Green Channel Counter (GCC) in another couple of months. Its first GCC was opened at SBI main branch here on Tuesday by Rebati Kanta Biswal, general manager (network 1), SBI, Bangalore Circle. Standard Chartered CardsA Card for Every Personality. Best Privileges, Rewards & Offers. Apply StandardChartered.co.in/CreditCards Biswal said that there were 24 GCC branches in Bangalore, two in Hubli and one in Mangalore. SBI has 476 branches in the state. As of now 318 GCC branches are there all over India. The pilot project, under Save a Tree Campaign to promote paperless banking practices by facilitating cash withdrawals, deposits and transfer of funds in bank accounts by customers without tendering paper vouchers, commenced in Bangalore six months back. Biswal said the efforts were to take it forward to all branches as and when hardware and connectivity was available. GCC initiative works on swiping mechanism of SBI debit card on a point of sale machine and the transaction is put through using a small paper acknowledgement. He said the bank intends to save trees through usage of GCC by putting through approximately 89,677 transactions during this and next month. Biswal said the main objective was to shift the customer base from personal banking to internet banking. C M Tallur, assistant general manager of the bank, said that for aged people this was a boon as they were not comfortable with ATMs. This will slowly introduce them to ATMs and doing away with challans while depositing money would be a boon for the aged. State Bank of India State Bank of India (SBI) is the largest bank in India with assets of over $300 billion. The bank traces roots back to the British Empire. Today, in addition to hundreds of branches in India, SBI has bank operations in another thirty countries across the globe

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including a FDIC-insured bank in the United States with branches in New York and California. Can a bank this large ever be considered a green bank? Well they can certainly try. And State Bank of India is trying. Recent green innovations include: Adapting in India 51 branches to green banking with paperless card-based transaction lines to process deposits, check-cashing and other normal banking activities Supporting the construction of wind farms in India Making a commitment that new building will adopt green building standard including utilizing natural lighting and recycled water Implementing policies aimed at achieving carbon neutrality Online money transfers between United States and India from branch banks Green Banking in India Accelerates ICICI funding Cleantech R&D,Canara Bank Solar Lighting and SBI using Wind Energy Green Banking in India has started increasing at a rapid pace as concerns over Global Warming increase. Most of Indias Banks are pushing for Clean Technology in their separate ways. Though there is lack of regulation on funding of environment friendly projects, Banks are pushing ahead on their own anyway. Indias Financial Sector has seen the writing on the wall as the largest bank SBI is using Wind Energy for captive consumption to reduce its carbon footprint. The Bank is also reducing the interest rates for Green Projects beside helping in carbon consulting of customers.SBI is also implementing thousands of Green Kiosks to reduce the need for paper. ICICI Bank is helping funding research in clean technology using TFD while Canara Bank has funded almost 50,000 units of Solar Lighting . Most of Green Banking is in providing loan at concessional interest rates to customers though its a difficult job given the conservative nature of banking and the newness of the Green Industry .Finance Companies in India have been facing a tough problem in lending to Solar Energy projects in India under the JNNSM. Their reluctance is due to the bankrupt condition of the state distribution electricity companies and the inexperience of solar power developers in India. However the Banks have in spite of all this introduced debt products with SBI extending a 15 year tenure project financing loan for a solar power project .Note Green Banking is essential if India wants to meet its target of 15% of Energy coming from Renewable Energy by 2020 from around 5% at present. Banking On Green Project Recently, Naina Lal Kidwai, group general manager and country head, HSBC India, had sought regulations for banks on funding projects that may not be environmentally sustainable. Kidwai had expressed the need for certain uniform standards or guidelines to be adopted by the banks for funding projects that are not environmentally friendly. When asked if there are projects that the bank does not finance because of environmental concerns, she says, Since there are no fixed standards, if I dont lend, somebody else will. But we definitely seek an environmental audit or the road map of the company on clean technologies before we

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lend. In case the company does not have a clear strategy, we will not be comfortable lending. However, the scenario seems to be changing swiftly since the Indian economy has seen the emergence of green banking. Thanks to the increased awareness about global warming, banks are now putting their acts together, taking into consideration the environmental concerns more seriously than before.

Blank Questionnaire

When did green banking started in your banking? Ans: What are the advantages of green banking according to you? Ans: Can you tell what green banking according to you ? Ans: Do you think every bank should apply green banking? Ans: Are there any R.B.I guidelines in green banking? Ans: How do you motivate your employees to adopt green banking branches? Ans: How do you create awareness among the customer to use green banking services? Ans:

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CONCLUSION
From the above given project and analysis presented in it we can say that study concept of 'Green Bank' one of the most important thing that happened in the banking sector .Its focus on identify the steps necessary to adopt Green Banking, study which banks are adopting this concept & the benefits which they are deriving from concept,draw up of a guide for environmental programmes for better resource consumption practices, The banking sector can be Assess the operational environmental impacts of Piraeus Bank associated With its internal operational activities. The banking sector can be design and launch green banking products (promoting environmentally. As well as spread experience gained by the project to various banks and to disseminate the results to employees, associates and general public. In the banking sector there can be promoted to green bank. Financial institutions and banks in particular have an important role to play in this context by contributing to the creation of a strong and successful low carbon economy. They should expand the use of environmental information in the credit extension and investment decisions. The endeavour will help them proactively improve their environmental performance and creating long term value for their business. In future, business with a higher carbon footprint would be seen as a riskier business and banks may keep themselves away from financing such business and would look for financing new technology solutions that capture or reduce carbon emissions. The Green Banking is thus the order of the day and it will definitely benefit the banks, the industries and the environment as a whole.

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BIBLIOGRAPHY
PRIMARY DATA
Name of book: Green Wealth: How to Turn Unusable Land Into Moneymaking Assets Author: Kevin F. Noon , Judith A. Ward Publisher: Square One Publishers (January 1, 2007) Language: English

WEBLIOGRAPHY
http://greenbankreport.com/green-bank-deals/what-is-the-meaning-of-green-banking/ http://www.greenbank.com/green-banking/green-banking-products http://greenbankreport.com/green-bank-deals/the-future-of-green-banking-is-bright/ http://www.financialexpress.com/news/banking-on-green-projects/811954/ http://teriin.academia.edu/bibhuprasadnayak/Papers/1309298/Green_Banking_in_India

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