Linking Green Banking and Bank EnvironmentalPerformance Through Green Finance: A StudyOn Indian Commercial Banks

  • Authors

    • Monika Rani Research Scholar, M.M Institute of Management, Maharishi Markandeshwar (Deemed to be University), ‎Mullana, Ambala, Haryana, India
    • Garima Sehrawat Assistant Professor, M.M Institute of Management, Maharishi Markandeshwar (Deemed to be University), ‎Mullana, Ambala, Haryana, India
    • Sultan Singh Professor, M.M Institute of Management, Maharishi Markandeshwar (Deemed to be University), Mullana, Ambala, Haryana, India
    https://doi.org/10.14419/st7w0569

    Received date: January 3, 2026

    Accepted date: January 23, 2026

    Published date: February 10, 2026

  • Green Banking; Green Finance; Bank Environmental Performance; Structural Equation Modelling; PLS ‎Predict

  • Abstract

    This study examines the impact of green banking and green finance on the environmental performance of banks and whether green finance serves as a mediating factor in this relationship. Primary data were collected through ‎structured questionnaires from employees of selected commercial banks in Haryana. The primary data were collected among bank employees, resulting in a sample of 160 respondents. The Structural Equation ‎Modelling (SEM) approach was used to test, confirming strong validity, reliability, and predictive relevance. The ‎findings indicate that green financing has a significant positive impact on the performance of the environment, as ‎compared to green banking, which contributes positively to green financing and the environmental performance ‎of the banks. Another finding of the study is that green banking is shown to relate to the environmental ‎performance of banks through green financing. This complementary mediation highlights that financing ‎mechanisms are critical for achieving environmental outcomes through banking policies. The result implies that ‎implementing GB initiatives such as loans for eco-friendly projects, online banking, renewable energy ‎investments, and waste management can reduce banks' carbon footprint, improve sustainability, and boost ‎competitiveness. By confirming the mediating role of green finance, the study contributes to both academic ‎literature and practical banking strategies, particularly in emerging economies striving for sustainable development‎.

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    Rani , M. ., Sehrawat , G. ., & Singh, S. . (2026). Linking Green Banking and Bank EnvironmentalPerformance Through Green Finance: A StudyOn Indian Commercial Banks. International Journal of Accounting and Economics Studies, 13(2), 64-74. https://doi.org/10.14419/st7w0569