EXAMINATION OF SUSTAINABLE BANKING PERFORMANCE OF THE INDIAN BANKING SECTOR

Abstract

Sustainable banking performance is essential for developing ESG sustainability. This study examines how Indian banks are implementing sustainable banking practices. Analysing the sustainability reports, corporate social responsibility reports, business responsibility reports, and annual reports from fiscal years 2016-17 to 2023-24, we assessed the banks’ performance against sustainability indicators identified from existing literature. This research is one of the first to explore the extent of sustainable banking performance among commercial banks in India. The findings indicate that Indian banks have slowly adopted sustainable banking practices. Prioritised sustainability issues for these banks are mainly linked to their core business operations, such as financial inclusion, financial literacy, and energy-efficient technology. However, most banks have largely neglected environmental sustainability indicators. The study also reveals a notable disparity between public and private sector banks in their approach to sustainable banking, with private sector banks generally performing better.

This research aims to provide valuable insights for the banking sector and its stakeholders, highlighting the current limitations in implementing sustainable banking practices in India. By understanding these challenges, stakeholders can work towards more effective strategies and policies to promote sustainability in the banking industry.