Paper Contents
Abstract
The Indian banking sector is poised at a transformative juncture, with sustainability emerging as a central theme in its future trajectory. Sustainable banking, which integrates environmental, social, and governance (ESG) criteria into financial services, is gaining prominence as a response to the growing global focus on climate change, social equity, and ethical governance. This abstract explores the future of sustainable banking in India, delving into the prevailing trends, inherent challenges, and potential opportunities. Current trends indicate a marked shift towards green financing, responsible investment, and the adoption of ESG frameworks by Indian banks. Regulatory bodies, such as the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), are increasingly advocating for sustainability disclosures and the integration of ESG factors in banking operations. Technological advancements, including fintech innovations and blockchain, are further catalyzing the transition to sustainable banking by enhancing transparency and efficiency. However, the journey towards sustainable banking in India is fraught with challenges. Key obstacles include the lack of standardized ESG metrics, limited awareness among stakeholders, and the high costs associated with green projects. Additionally, there is a need for capacity building within banks to effectively implement and manage ESG initiatives. Despite these challenges, significant opportunities exist for the Indian banking sector. By aligning with global sustainability goals and leveraging international green finance mechanisms, Indian banks can unlock substantial funding for sustainable projects. The growing demand for green bonds and sustainable investment products presents a lucrative market. Furthermore, banks can play a pivotal role in driving inclusive growth by financing initiatives that address socio-economic disparities and environmental sustainability. In essence, the future of sustainable banking in India is bright, with a balanced approach required to navigate the challenges and capitalize on the opportunities. By embedding sustainability into their core strategies, Indian banks can not only contribute to a greener and more equitable economy but also achieve long-term profitability and resilience.Keywords: Sustainable Banking, Environmental,Social and Governance (ESG), Green Financing, Indian Banking SectorInclusive Growth
Copyright
Copyright © 2024 Dr. Shashi Kant Verma. This is an open access article distributed under the Creative Commons Attribution License.
