A STUDY ON SUSTAINABLE BANKING PRACTICES

Abstract

Sustainable banking practices refer to the integration of environmental, social, and governance (ESG) principles into banking operations, lending decisions, investment strategies, and risk management to promote long-term economic, social, and environmental well-being. This study examines the importance of sustainable banking in supporting responsible financial growth, reducing environmental risks, and encouraging investments in green projects, renewable energy, and socially responsible businesses. It also explores the role of banks in adopting digital banking solutions, improving resource efficiency, ensuring regulatory compliance, and promoting financial inclusion. The study highlights the benefits of sustainable banking for financial institutions, customers, and society while identifying the challenges involved in implementing sustainable practices. The findings indicate that sustainable banking enhances corporate reputation, strengthens risk management, improves operational efficiency, and contributes to sustainable economic development by balancing profitability with social and environmental responsibility.