Sustainable Banking in India: A Conceptual Framework Integrating Green Banking Activities, Green Financing, and Environmental Performance

Abstract

Green banking in India has drawn global attention as an effective tool to promote environmentally friendly technologies and facilitate sustainable economic growth. The regulators are taking considerable initiatives towards framing guidelines to support green finance and move towards a low-carbon economy. Although there are scattered empirical studies on green banking (GB), there is a clear gap for a holistic theoretical perspective that shows how operational changes lead to tangible sustainability impacts. This paper proposes a comprehensive conceptual framework anchored in Institutional and Stakeholder theories, linking green banking activities, green financing, and environmental performance. By outlining a rigorous research agenda and testable propositions, this study provides a methodological blueprint to help researchers and decision-makers evaluate and enhance the substantive sustainability of the Indian banking industry.