Greenning of finance in India: Need of today

To achieve sustainable development, markets should be allowed to work in suitable structure of cost efficient rules and economic instruments. Banking sector is one of the chief economic factor which effects industrial and economic growth of any economy. Today industries and firms are susceptible to rigorous laws and environmental policies. As in the industrial sector banking is one of the main stakeholder, it can face credit risk, liability risk and its quality of assets and rate of return can be influenced by environmental blow in the long run. Therefore banks have to play a positive role to go green and inculcate and embed the environmental and ecological factors in their policies which will ultimately compel industries to make investment in environmental sustainable industries. The objective of this paper is to examine the comparative picture of green banking initiatives in India and overseas which will help in suggesting the possible gaps of green initiatives in India and will also suggests the potential channels to promote green banking in India.