Strategic Green Marketing Practices Minimizing Environmental Impact in the Indian Banking Sector

Authors

  •   Manish Kumar Assistant Professor, ICFAI Business School, The ICFAI Foundation for Higher Education (Deemed to be University, Under Sec 3 of UGC Act, 1956), Donthanpally, Shankerpally Road, Hyderabad - 501 203, Telangana ORCID logo https://orcid.org/0009-0001-0862-7356
  •   Sony Kumari Manager I, ICICI Bank, Flat No 102, Sharan Complex, Near H P Petrol Pump, Sadaquat Ashram, Kurji, Patna - 800 010, Bihar
  •   Ramesh Kandela Assistant Professor, ICFAI Business School, The ICFAI Foundation for Higher Education (Deemed to be University, Under Sec 3 of UGC Act, 1956), Donthanpally, Shankerpally Road, Hyderabad - 501 203, Telangana ORCID logo https://orcid.org/0000-0002-8276-2900
  •   A. Arun Kumar Senior Assistant Professor & Assistant Dean (Corresponding Author), ICFAI Law School, The ICFAI Foundation for Higher Education (Deemed to be University, Under Sec 3 of UGC Act, 1956), Donthanpally, Shankerpally Road, Hyderabad - 501 203, Telangana ORCID logo https://orcid.org/0000-0002-4048-6389

DOI:

https://doi.org/10.17010/ijf/2026/v20i6/176042

Keywords:

green banking, green marketing, brand image, environment, sustainability.
JEL Classification Codes :M31, G21, Q56, Q01, O16, M14
Publication Chronology: Paper Submission Date : September 27, 2025 ; Paper sent back for Revision : May 15, 2026 ; Paper Acceptance Date : May 25, 2026 ; Paper Published Online : June 15, 2026.

Abstract

Purpose : The purpose of this study was to examine the role of strategic green marketing practices in the Indian banking sector in minimizing adverse environmental impact by promoting green technology financing and implementing sustainable green banking practices. The study specifically examined how green social responsibility (GSR), green processes, and green products influenced green brand perception and green brand equity (GBE) among Indian bank customers.

Design/Methodology/Approach : The study adopted a quantitative research approach supported by an extensive review of relevant literature to develop a conceptual research model. Primary data were collected through a structured questionnaire administered to 330 Indian bank account holders. Factor analysis and structural equation modeling (SEM) were employed to examine the relationship between key green marketing dimensions, GSR, green processes (GP), and green products, and their influence on green brand image (GBI) and GBE.

Findings : Green marketing dimensions significantly enhanced customer perceptions of GBI and positively influenced GBE in the Indian banking sector. Among the three dimensions, green products emerged as the strongest contributor, followed by GP and GSR. The results indicated that strategic green marketing practices indirectly contributed to minimizing environmental degradation by encouraging environmentally responsible banking operations and supporting sustainability-oriented financial behavior.

Practical Implications : The findings have important implications for banking practitioners and policymakers by emphasizing the need to integrate green marketing elements into strategic decision-making processes. Bank managers could strengthen the GBI, enhance customer trust, and improve brand equity by offering environmentally responsible products, implementing sustainable internal processes, and pursuing social responsibility initiatives. The study also offered guidance for promoting sustainable growth, reducing environmental impact, and enhancing social well-being through effective green banking strategies.

Originality/Value : This study contributes to the growing literature on green banking by offering a novel perspective on how green marketing strategies in the banking sector indirectly support environmental sustainability and reduce the adverse effects of global warming. Unlike previous studies, it integrates GSR, GPs, and green products to explain green brand perception and equity in the Indian banking context, while highlighting current sustainability initiatives adopted by banks to promote long-term environmental and social welfare.

Downloads

Download data is not yet available.

Downloads

Published

2026-06-15

How to Cite

Kumar, M., Kumari, S., Kandela, R., & Kumar, A. A. (2026). Strategic Green Marketing Practices Minimizing Environmental Impact in the Indian Banking Sector. Indian Journal of Finance, 20(6), 68–85. https://doi.org/10.17010/ijf/2026/v20i6/176042

Issue

Volume 20, Issue 6, June 2026

Section

Articles
Crossref
Scopus
Google Scholar
Europe PMC

References

1) Aggarwal, M., Nayak, K. M., & Bhatt, V. (2023). Examining the factors influencing fintech adoption behaviour of Gen Y in India. Cogent Economics & Finance, 11(1), Article ID 2197699. https://doi.org/10.1080/23322039.2023.2197699

2) Aintablian, S., McGraw, P. A., & Roberts, G. S. (2007). Bank monitoring and environmental risk. Journal of Business Finance & Accounting, 34(1–2), 389–401. https://doi.org/10.1111/j.1468-5957.2006.00644.x

3) Barabanov, S. S., Basnet, A., Walker, T. J., Yuan, W., & Wendt, S. (2021). Firm- and country-level determinants of green investments: An empirical analysis. Managerial Finance, 47(11), 1672–1692. https://doi.org/10.1108/MF-06-2020-0311

4) Biel, A. L. (1993). How brand image drives brand equity. Journal of Advertising Research, 32(6), 6–12.

5) Byrne, B. M. (2016). Structural equation modeling with AMOS: Basic concepts, applications, and programming (3rd ed.). Routledge. https://doi.org/10.4324/9781315757421

6) Charter, M., & Polonsky, M. J. (1999). Greener marketing: A global perspective on greening marketing practice. Greenleaf Publishing Limited.

7) Chen, Y.-S. (2010). The drivers of green brand equity: Green brand image, green satisfaction, and green trust. Journal of Business Ethics, 93, 307–319. https://doi.org/10.1007/s10551-009-0223-9

8) Cheung, G. W., Cooper-Thomas, H. D., Lau, R. S., & Wang, L. C. (2024). Reporting reliability, convergent and discriminant validity with structural equation modeling: A review and best-practice recommendations. Asia Pacific Journal of Management, 41, 745–783. https://doi.org/10.1007/s10490-023-09871-y

9) Dayal, S., Soni, T. K., Aggarwal, R., & Hotwani, R. (2024). Linking ESG disclosure to firm performance and risk: An international perspective. Indian Journal of Finance, 18(11), 36–55. https://doi.org/10.17010/ijf/2024/v18i11/174641

10) Dervi, U. D., Khan, A., Saba, I., Hassan, M. K., & Paltrinieri, A. (2022). Green and socially responsible finance: Past, present, and future. Managerial Finance, 48(8), 1250–1278. https://doi.org/10.1108/MF-11-2021-0561

11) Donaldson, T., & Dunfee, T. W. (2002). Ties that bind in business ethics: Social contracts and why they matter. Journal of Banking & Finance, 26(9), 1853–1865. https://doi.org/10.1016/S0378-4266(02)00195-4

12) Faircloth, J. B., Capella, L. M., & Alford, B. L. (2001). The effect of brand attitude and brand image on brand equity. Journal of Marketing Theory and Practice, 9(3), 61–75. https://doi.org/10.1080/10696679.2001.11501897

13) Fernandes, S., Sathish, M., & Shrivastava, P. (2024). Effect of consciousness on sustainable consumption habits on purchase intention for green products: Comparison study between India and the USA. Indian Journal of Marketing, 54(10), 8–24. https://doi.org/10.17010/ijom/2024/v54/i10/174602

14) Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104

15) Gupta, S., & Goldar, B. (2005). Do stock markets penalize environment-unfriendly behaviour? Evidence from India. Ecological Economics, 52(1), 81–95. https://doi.org/10.1016/j.ecolecon.2004.06.011

16) Guru, B. K., & Panda, S. (2024). Financial sustainability and internal efficiency in Indian commercial banks. Prabandhan: Indian Journal of Management, 17(10), 37–55. https://doi.org/10.17010/pijom/2024/v17i10/173995

17) Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Pearson.

18) Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage Learning.

19) Hart, S. L., & Ahuja, G. (1996). Does it pay to be green? An empirical examination of the relationship between emission reduction and firm performance. Business Strategy and the Environment, 5(1), 30–37. https://doi.org/10.1002/(SICI)1099-0836(199603)5:1<30::AID-BSE38>3.0.CO;2-Q

20) Hu, L.-T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1–55. https://doi.org/10.1080/10705519909540118

21) Jain, A., Yadav, P., & Kochhar, K. (2024). Do green banking practices change customers' attitudes and behavior: A conceptual model. Indian Journal of Finance, 18(4), 25–43. https://doi.org/10.17010/ijf/2024/v18i4/173725

22) Jain, S. K., & Kaur, G. (2004). Green marketing: An Indian perspective. Decision, 31(2), 168–209.

23) James, H. (1995). Pollution as news: Media and stock market reactions to the toxics release inventory data. Journal of Environmental Economics and Management, 28(1), 98–113. https://doi.org/10.1006/jeem.1995.1007

24) Jamkhandikar, S., & Dickie, G. (2022, August 4). India approves new emissions targets to tackle climate change. Reuters. https://www.reuters.com/world/india/india-approves-new-emissions-targets-tackle-climate-change-2022-08-04/

25) Jeucken, M., & Bouma, J. J. (1999). The changing environment of banks. Greener Management International, 27(1), 21–35.

26) Jones, D. A. (2010). Does serving the community also serve the company? Using organizational identification and social exchange theories to understand employee responses to a volunteerism programme. Journal of Occupational and Organizational Psychology, 83(4), 857–878. https://doi.org/10.1348/096317909X477495

27) Khan, H. Z., Bose, S., Sheehy, B., & Quazi, A. (2021). Green banking disclosure, firm value, and the moderating role of a contextual factor: Evidence from a distinctive regulatory setting. Business Strategy and the Environment, 30(8), 3651–3670. https://doi.org/10.1002/bse.2832

28) Khattri, V., & Tomar, V. S. (2024). Does greenwashing build green brand associations? Evidence from the Indian packaged food market. Indian Journal of Marketing, 54(2), 27–43. https://doi.org/10.17010/ijom/2024/v54/i2/172049

29) Kline, R. B. (2016). Principles and practice of structural equation modeling (4th ed.). The Guilford Press.

30) Kosiba, J. P., Boateng, H., Okoe Amartey, A. F., Boakye, R. O., & Hinson, R. (2018). Examining customer engagement and brand loyalty in retail banking: The trustworthiness influence. International Journal of Retail & Distribution Management, 46(8), 764–779. https://doi.org/10.1108/IJRDM-08-2017-0163

31) Kotler, P., & Keller, K. (2006). Marketing management (12th ed.). Prentice Hall.

32) Kumar, K., & Prakash, A. (2019). Examination of sustainability reporting practices in the Indian banking sector. Asian Journal of Sustainability and Social Responsibility, 4(1), Article no. 2. https://doi.org/10.1186/s41180-018-0022-2

33) Kumar, R., Mallick, S. S., Hota, S. L., Vasudevan, A., & Şimşek, S. A. (2025). Green marketing strategies: Enhancing brand image and consumer trust in sustainable development. Prabandhan: Indian Journal of Management, 17(12), 8–27. https://doi.org/10.17010/pijom/2024/v17i12/174054

34) Liengaard, B. D. (2024). Measurement invariance testing in partial least squares structural equation modeling. Journal of Business Research, 177, Article ID 114581. https://doi.org/10.1016/j.jbusres.2024.114581

35) Lorraine, N. H., Collison, D. J., & Power, D. M. (2004). An analysis of the stock market impact of environmental performance information. Accounting Forum, 28(1), 7–26. https://doi.org/10.1016/j.accfor.2004.04.002

36) Lymperopoulos, C., Chaniotakis, I. E., & Soureli, M. (2012). A model of green bank marketing. Journal of Financial Services Marketing, 17, 177–186. https://doi.org/10.1057/fsm.2012.10

37) Mahajan, A., & Pathak, R. (2025). Decarbonizing development: Green and sustainable bonds in mitigating emissions in Asian countries. Indian Journal of Finance, 19(8), 50–67. https://doi.org/10.17010/ijf/2025/v19i8/175233

38) Mohanty, S. S., & Rath, S. (2023). Does CSR make business? Insights from structural equation model analysis of Indian companies. Global Business Review. https://doi.org/10.1177/09721509231173112

39) Park, H., & Kim, J. D. (2020). Transition towards green banking: Role of financial regulators and financial institutions. Asian Journal of Sustainability and Social Responsibility, 5(1), Article no. 5. https://doi.org/10.1186/s41180-020-00034-3

40) Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903. https://doi.org/10.1037/0021-9010.88.5.879

41) Rayfield, B., & Unsal, O. (2022). Green innovation and environmental misconduct. Managerial Finance, 48(8), 1156–1173. https://doi.org/10.1108/MF-09-2021-0458

42) Richter, N. F., & Tudoran, A. A. (2024). Elevating theoretical insight and predictive accuracy in business research: Combining PLS-SEM and selected machine learning algorithms. Journal of Business Research, 173, Article ID 11445. https://doi.org/10.1016/j.jbusres.2023.114453

43) Rukikaire, K. (2021). Step up climate change adaptation efforts or face huge disruption: UN Report. UN Environment Programme. https://www.unep.org/news-and-stories/press-release/step-climate-change-adaptation-efforts-or-face-huge-disruption-un

44) Sahoo, P., & Nayak, B. P. (2007). Green banking in India. The Indian Economic Journal, 55(3), 82–98. https://www.econbiz.de/Record/green-banking-in-india-sahoo-pravakar/10003737334

45) Scholtens, B. (2009). Corporate social responsibility in the international banking industry. Journal of Business Ethics, 86, 159–175. https://doi.org/10.1007/s10551-008-9841-x

46) Sharma, M., & Choubey, A. (2022). Green banking initiatives: A qualitative study on Indian banking sector. Environment, Development and Sustainability, 24, 293–319. https://doi.org/10.1007/s10668-021-01426-9

47) Sijtsma, K. (2009). On the use, the misuse, and the very limited usefulness of Cronbach's alpha. Psychometrika, 74(1), 107–120. https://doi.org/10.1007/s11336-008-9101-0

48) Singh, P. (2010). Green marketing: Opportunity for innovation and sustainable development. SSRN. https://doi.org/10.2139/ssrn.1636622

49) Singh, R. K., Kumar, N., Singh, Y., Kumar, A., & Kumar, S. (2025). Moderating role of stock return volatility in corporate governance–firm value structural linkages: Insights from a PLS-SEM with IPMA approach. Indian Journal of Finance, 19(1), 8–32. https://doi.org/10.17010/ijf/2025/v19i1/174693

50) Sood, K., Pathak, P., Jain, J., & Gupta, S. (2023). How does an investor prioritize ESG factors in India? An assessment based on fuzzy AHP. Managerial Finance, 49(1), 66–87. https://doi.org/10.1108/MF-04-2022-0162

51) Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355–374. https://doi.org/10.2307/1882010

52) Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. The Academy of Management Review, 20(3), 571–610. https://doi.org/10.2307/258788

53) Tara, K., Singh, S., & Kumar, R. (2015). Green banking for environmental management: A paradigm shift. Current World Environment, 10(3), 1029–1038. https://doi.org/10.12944/CWE.10.3.36

54) Thao, N. T., & Tran, L. T. (2023). Being “green” to trust and continue in a global pandemic. International Journal of Bank Marketing, 41(2), 269–288. https://doi.org/10.1108/IJBM-05-2022-0192

55) Tiwari, P. (2023). Influence of the green brand image on the green word of mouth of millennials: A mediation study on banks. Public Organization Review, 23, 59–78. https://doi.org/10.1007/s11115-021-00597-3

56) Trumpp, C., & Guenther, T. (2017). Too little or too much? Exploring U‐shaped relationships between corporate environmental performance and corporate financial performance. Business Strategy and the Environment, 26(1), 49–68. https://doi.org/10.1002/bse.1900

57) Xie, X., Huo, J., & Zou, H. (2019). Green process innovation, green product innovation, and corporate financial performance: A content analysis method. Journal of Business Research, 101, 697–706. https://doi.org/10.1016/j.jbusres.2019.01.010

58) Yasin, N. M., Noor, M. N., & Mohamad, O. (2007). Does image of country‐of‐origin matter to brand equity? Journal of Product & Brand Management, 16(1), 38–48. https://doi.org/10.1108/10610420710731142

59) Zorraquín, F. J., & Schmidheiny, S. (1998). Financing change: The financial community, eco-efficiency, and sustainable development. The MIT Press. https://mitpress.mit.edu/9780262692076/financing-change/