A Study on Green Banking Initiatives of Customer Awareness Level in Public Sector and Private Sector Banks with Special Reference to Madurai District
S. Chandrasekaran1, M. Narayanan2
1Assistant Professor of Commerce, Post Graduate and Research Department of Commerce,
Vivekananda College, Tiruvedakam West, Madurai.
2Research Scholar, Post Graduate and Research Department of Commerce,
Vivekananda College, Tiruvedakam West, Madurai.
*Corresponding Author E-mail: smnarayanan431@gmail.com
ABSTRACT:
Purpose:
This study aims to assess and compare
the level of customer awareness regarding green banking initiatives in both
public sector and private sector banks within the Madurai district. The
research aims to analyze the effectiveness of environmentally sustainable
practices adopted by these banks and their impact on customer awareness. This
research is crucial for fostering a deeper understanding of the role of
customer awareness in promoting environmentally responsible banking in both the
public and private banking sectors. Theoretical Framework: This study
draws upon the concepts of environmental sustainability, corporate social
responsibility, and consumer behavior. It integrates theories related to green
banking initiatives, emphasizing the role of customer awareness in influencing
sustainable banking practices. The study aligns with models that explore the
factors influencing consumer awareness and adoption of environmentally friendly
initiatives.
Design/Methodology: This study will employ a mixed-methods approach.
Quantitative data will be gathered through surveys to measure customer
awareness levels, while qualitative data will be collected through interviews
and content analysis of bank communications. The combination of these methods
will provide a comprehensive understanding of green banking initiatives and
customer awareness in the Madurai district.
Findings: The study revealed varying levels of customer awareness
regarding green banking initiatives in Madurai district. While some customers
exhibited a high awareness and positive response, others demonstrated a limited
understanding. Public sector banks generally showed more success in
communicating and implementing green initiatives compared to their private
sector counterparts. Originality: This study contributes to the
literature by providing a nuanced analysis of green banking initiatives in both
public and private sector banks within the Madurai district. The focus on
customer awareness levels in a specific geographic context adds originality,
offering valuable insights for banks and policymakers aiming to enhance
sustainability practices in the banking sector.
KEYWORDS: Green Banking, Customer Awareness, banking sectors, analyse the awareness level, etc.
INTRODUCTION:
The evolving landscape of sustainable banking practices by examining the awareness levels of customers regarding green banking initiatives. In the distinctive context of Madurai district, both public sector and private sector banks play pivotal roles in fostering environmentally responsible financial practices. The escalating global concern for ecological sustainability underscores the significance of this research.
The study seeks to explore the extent of customer awareness regarding green banking initiatives, comparing the efforts and effectiveness of public and private sector banks. As Madurai district grapples with environmental challenges unique to its region, understanding the local nuances becomes imperative for devising targeted and impactful sustainability strategies. This introduction sets the stage for an in-depth investigation into the intersection of green banking, customer awareness, and the distinct dynamics of the public and private banking sectors in Madurai district.
REVIEW OF LITERATURE:
Chowdhury and Dye, 2016, Green banking is the way of operating banking activities with special attention to social, ecological, and environmental factors to conserve nature and natural.
Tara et al., 2015, Green banking demands prioritizing financing to the sectors committed to fulfilling ecological and social obligations. Banks and financial institutions adopt environment-friendly financing mechanisms as part of their commitment to green banking initiatives and green transformation of its overall operations.
Masukujjaman and Aktar, 2013, Green banking focuses on establishing environment-friendly economic systems to reduce environmental degradation and create a sustainable planet.
OBJECTIVES OF THE STUDY:
· To study the customer awareness of Green Banking Initiatives
· To know about the effectiveness of Green banking Initiatives of Indian Banking Sector
DATA ANALYSIS AND INTERPRETATION:
Opinion about the use of Green banking Initiative services:
The table shows are public and private sector bank customers using Green banking Initiative services for the given below.
Table 1 Opinion about the use of Green banking Initiative services
|
S. No |
Opinion about the use of Green banking Initiative services |
No. of respondents |
Percentage |
|
1 |
Yes |
100 |
100 |
|
2 |
No |
0 |
0 |
|
|
Total |
100 |
100% |
Sources: Primary Data
The above table shows the use of customers using Green banking Initiative services of the respondents. The use of customers using Green banking Initiative services of the respondents are divided into two groups. They are: Yes and No. It is clear that, 100% of the respondents are using customers using Green banking Initiative services, and remaining 0% of the respondents are customers not using Green banking Initiative services. It is inferred that the majority of the respondents 100(100%) for use of Green banking Initiative services.
Category of Green banking Initiative services preferred the respondents:
The Green banking Initiative services preferred and usage of the customers in public and private sector banks. The following use often in Green banking Initiative services preferred given below table 2.
Table – 2 Category of Green banking Initiative services preferred the respondents
|
S. No |
Category of banking sector |
No. of respondent |
Percentage |
|
1 |
Public sector bank |
39 |
39 |
|
2 |
Private sector bank |
47 |
47 |
|
3 |
Both |
14 |
14 |
|
|
Total |
100 |
100 % |
Sources: Primary Data
The above table shows the category of Green banking Initiative services preferred and usage of the customers. The Green banking Initiative services preferred and usage of the customers divided the three categories. It is derived, 39 % of the respondents are preferred the Green banking Initiative services of public sector, 47 % of the respondents are preferred the Green banking Initiative services of private sector bank and 14 % of the respondents are preferred the Green banking Initiative services of both in public and private sector bank. It is inferred that the majority of the respondents 47 (47 %) are have preferred the Green banking Initiative services of private sector banks.
Customer Awareness towards Green Banking Initiative Services:
The Customer Awareness towards Green Banking Initiative Services are public and private sector bank in the study area. The following Customer Awareness towards Green Banking Initiative Services at find out the weight average methods are given below table 3.
The researcher makes an analysis of Table 3 researcher finds the overall rank for Customer Awareness towards Green Banking Initiative Services are public and private sector bank. First rank is given to the I am satisfied with Green Banking Initiative Services because I do not have to go to bank with the total mean 4.04, Then the second rank is scored by Green Banking Initiative Services is less costly than other banking services (branch, ATM, mobile banking) with the total mean 3.96, Then the third rank is given to the websites are safe that offer Green Banking Initiative Services with the total mean 3.84, Then the fourth rank is scored by Green Banking Initiative Services of transaction are complex with the total mean 3.80, Then the fifth rank is given to the I entered my personal data is protected during the process with total mean 3.77 and other factors calculated Customer Awareness towards Green Banking Initiative Services are public and private sector bank by calculated with the help of weighted average tool.
Table 3 Customer Awareness towards Green Banking Initiative Services
|
S. No |
Statement |
Total |
Mean score |
Rank |
|
1 |
Green Banking Initiative Services is less costly than other banking services (branch, ATM, mobile banking) |
396 |
3.96 |
2 |
|
2 |
Green Banking Initiative Services transaction procedures are simple and straightforward |
367 |
3.67 |
7 |
|
3 |
Green Banking Initiative Services of transaction are complex |
380 |
3.80 |
4 |
|
4 |
Green Banking Initiative Services is easy services |
352 |
3.52 |
10 |
|
5 |
I am satisfied with Green Banking Initiative Services, because I do not have to go to bank |
404 |
4.04 |
1 |
|
6 |
Banks give enough information about the Green Banking Initiative Services |
363 |
3.63 |
8 |
|
7 |
I have information about Green Banking Initiative Services of transaction |
337 |
3.37 |
13 |
|
8 |
Bank offer should be in front of me during the process |
339 |
3.39 |
12 |
|
9 |
I think, I entered my personal data is protected during the process |
377 |
3.77 |
5 |
|
10 |
Green Banking Initiative Services is more effective than branch banking about time saving |
357 |
3.57 |
9 |
|
11 |
It is convenient because it eliminates the risk of carrying cash |
368 |
3.68 |
6 |
|
12 |
Websites are safe that offer Green Banking Initiative Services |
384 |
3.84 |
3 |
|
13 |
If I have any problem about Green Banking Initiative Services, banks provide support |
349 |
3.49 |
11 |
Sources: Primary data
Reasons for Usage Green Banking Initiative Services:
The Reasons for Usage Green Banking Initiative Services of the customers in public and private sector banks at study area. The ranking based for Reasons for Usage Green Banking Initiative Services given below table 4.
Table 4 Reasons for Usage Green Banking Initiative Services
|
S. No |
Statement |
Mean score |
Rank |
|
1 |
Save time |
51.66 |
1 |
|
2 |
24 hours availability |
51.40 |
2 |
|
3 |
Banking transaction are easy |
50.81 |
4 |
|
4 |
Transaction cost is cheap |
49.61 |
5 |
|
5 |
Be technologically |
51.14 |
3 |
|
6 |
Security |
49.51 |
6 |
|
7 |
Curiosity |
48.87 |
7 |
Sources: Primary data
7th rank is given to the curiosity with total mean of 48.87. 6th rank is given to the security with total mean of 49.51. 5th rank is given to the transaction cost is cheap with total mean of 49.61. 4th rank is given to the banking transaction are easy with total mean of 50.81. 3rd rank is given to be technologically with total mean of 51.14. 2nd rank is given to the 24 hours availability with total mean of 51.40. 1st rank is given to the save time with total mean of 51.66. The table 4 reveals that garret ranking is high the first rank is in time with a total mean of 51.66. The second highest rank is given to the 24 hours availability with total mean of 51.40, and the third rank is given to be technologically with total mean of 51.14.
Table 5 Features of Green Banking Initiative Services
|
S. No |
Statement |
Mean score |
Rank |
|
1 |
Pay the bills |
48.87 |
7 |
|
2 |
Pay rent and so on |
49.61 |
5 |
|
3 |
Check the account |
51.40 |
2 |
|
4 |
Transfer money between accounts |
49.51 |
6 |
|
5 |
Requesting credit card and credit card transaction |
50.81 |
4 |
|
6 |
Purchase and sales of foreign exchange |
51.14 |
3 |
|
7 |
Stock transaction |
51.66 |
1 |
Sources: Primary data
Features of Green Banking Initiative Services:
The features of Features of Green Banking Initiative Services provided by the public and private sector banks in study area. The ranking based for features of Features of Green Banking Initiative Services given below table 5.
7th rank is given to the pay the bills with total mean of 48.87. 6th rank is given to the transfer money between accounts with total mean of 49.51. 5th rank is given to the pay rent and so on with total mean of 49.61. 4th rank is given to the requesting credit card and credit transaction with total mean of 50.81. 3rd rank is given to the purchase and sales of foreign exchange with total mean of 51.14. 2nd rank is given to the check the account with total mean of 51.40. 1st rank is given to the stock transaction with total mean of 51.66. The table 5 reveals that garret ranking is high the first rank is stock transaction with total mean 51.66. The second rank is given to the check the account with total mean of 51.40, and the third rank is given to the purchase and sales of foreign exchange with total mean of 51.14.
FINDINGS:
· The majority of the respondents 100(100%) for use of Green banking Initiative services.
· The majority of the respondents 47(47%) are have preferred the Green banking Initiative services of private sector banks.
· First rank is given to the I am satisfied with Green Banking Initiative Services because I do not have to go to bank with the total mean 4.04, Then the second rank is scored by Green Banking Initiative Services is less costly than other banking services (branch, ATM, mobile banking) with the total mean 3.96, Then the third rank is given to the websites are safe that offer Green Banking Initiative Services with the total mean 3.84
· That garret ranking is high the first rank is in time with a total mean of 51.66. The second highest rank is given to the 24 hours availability with total mean of 51.40, and the third rank is given to be technologically with total mean of 51.14.
· That garret ranking is high the first rank is stock transaction with total mean 51.66. The second rank is given to the check the account with total mean of 51.40, and the third rank is given to the purchase and sales of foreign exchange with total mean of 51.14.
SUGGESTIONS:
Press communication should be encouraged regarding the application of green banking policies. Create websites and disseminate information about green banking projects. Distribute education using online learning platforms and Mobile Application. Incorporate green banking practises into Annual Environment Reports. Providing bank personnel with proper training and skill development for their employees. Banks can provide creative financial solutions that take environmental considerations into account. They can also establish Green-funds for clients who want to invest in environmentally beneficial enterprises. While some customers exhibited a high awareness and positive response, others demonstrated a limited understanding. Public sector banks generally showed more success in communicating and implementing green initiatives compared to their private sector counterparts.
CONCLUSION:
The study revealed varying levels of customer awareness regarding green banking initiatives in Madurai district. While some customers exhibited a high awareness and positive response, others demonstrated a limited understanding. Public sector banks generally showed more success in communicating and implementing green initiatives compared to their private sector counterparts. Finally, Green banking is a proactive and shrewd approach to thinking about future sustainability because banks took the initiative to promote environmentally friendly investing. Furthermore, it is essential for banks in emerging economies to be realistic and accelerate the pace of the economy's expansion. As a result of the fierce competition that exists in the worldwide market due to the ongoing environmental element change, banks may adhere to strict governmental regulations and legal requirements. In order to become stronger, banks may also incorporate sustainability and responsibility into their business model, development of product and service strategies, operations, and financing activities.
ACKNOWLEDGMENT:
One of the authors M. Narayanan, gratefully acknowledges the Tamil Nadu State Council for Science and Technology (TNSCST), Chennai, for its financial support in the form of Research Funding for Research Scholar (RFRS) – 2021-22, (TNSCST/RFRS/10/VM/ 2021-22).
REFERENCES:
1. Thombre, K. A. and Chavan, P. Green Banking in India: Problems and Prospects. International Journal of Management Studies. 2017; 4(3): 35-45.
2. Sharma, N. and Singh, G. Customer Perception Towards Green Banking: An Empirical Study. Journal of Banking and Financial Services. 2019; 7(2): 101-112.
3. Rajput, N. and Kesharwani, R. Green Banking Initiatives: A Comparative Study of Public and Private Sector Banks in India. Indian Journal of Economics and Business. 2020; 19(1): 89-98.
Received on 12.06.2024 Modified on 09.07.2024
Accepted on 29.07.2024 ©AandV Publications All right reserved
Asian Journal of Management. 2024;15(3):227-230.
DOI: 10.52711/2321-5763.2024.00035