Published Online:April 2025
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP040425
DOI:10.71329/IUPJARAP/2025.24.2.90-109
Author Name:Aju Mathew, Sathiyabama B, N Santhoshkumar, Renju Chandran4and Sarath Chandran M C
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:90-109
The paper investigates the mediating effect of green financing on the ecological performance of Indian public sector commercial banks. In the existing literature on green banking, a few studies have evaluated the environmental performance of banks through green finance, especially in India. This study bridges the gap by offering empirical insights into how green banking operations improve the environmental performance of public sector banks. 385 responses were gathered to analyze the relationship between the variables using Structural Equation Modeling (SEM). The results confirmed that green banking operations have a positive impact on the environmental performance of banks, with green financing being a strong mediating factor. The study reveals significant barriers such as lack of awareness, high cost of investment, lack of technical skills, and complexity in evaluating green projects. It also stresses the advantages of green banking, including minimizing clerical mistakes, enhancing efficiency, reducing paper use and carbon emissions, and increasing renewable energy, ultimately leading to ethical and social banking.
Banking industry plays a central role in promoting economic growth and sustainability. As concerns about climate change and environmental degradation grow, financial institutions are