Authors: Dr. Gaddam Praveen Kumar, Mrs. G. Swapna
Abstract: Green banking and sustainable finance are increasingly important mechanisms for aligning the financial sector with environmental sustainability and responsible economic development. This study empirically examines green banking and sustainable finance from the perspectives of investors and banking stakeholders in India, with particular emphasis on awareness, environmental and sustainability orientation, green financial literacy, trust and credibility, perceived risk and return, and banking stakeholder perceptions. A quantitative, cross-sectional research design was adopted using structured questionnaire responses from 176 respondents, comprising investors and banking stakeholders. Descriptive statistics, Cronbach’s alpha, Pearson correlation, multiple regression, and an independent-samples t test were employed for analysis. The findings indicate that all major determinants are positively associated with sustainable finance adoption intention. Trust and credibility emerged as the strongest predictor (β = .252), followed by environmental and sustainability orientation (β = .211), banking stakeholder perception (β = .207), green financial literacy (β = .206), green banking awareness (β = .172), and perceived risk and return (β = .126). The regression model explains 57.5% of the variance in sustainable finance adoption intention (R² = .575, p < .001). A significant difference was also observed between investors and banking stakeholders, with banking stakeholders reporting stronger overall perceptions of green banking and sustainable finance. The study highlights the importance of institutional trust, transparent sustainability disclosure, financial literacy, stakeholder engagement, and effective communication in strengthening sustainable finance adoption in India.
