Linking Green Banking and Bank EnvironmentalPerformance Through Green Finance: A StudyOn Indian Commercial Banks

This study examines the impact of green banking and green finance on the environmental performance of banks and whether green finance serves as a mediating factor in this relationship. Primary data were collected through ‎structured questionnaires from employees of selected commercial banks in Haryana. The primary data were collected among bank employees, resulting in a sample of 160 respondents. The Structural Equation ‎Modelling (SEM) approach was used to test, confirming strong validity, reliability, and predictive relevance. The ‎findings indicate that green financing has a significant positive impact on the performance of the environment, as ‎compared to green banking, which contributes positively to green financing and the environmental performance ‎of the banks. Another finding of the study is that green banking is shown to relate to the environmental ‎performance of banks through green financing. This complementary mediation highlights that financing ‎mechanisms are critical for achieving environmental outcomes through banking policies. The result implies that ‎implementing GB initiatives such as loans for eco-friendly projects, online banking, renewable energy ‎investments, and waste management can reduce banks' carbon footprint, improve sustainability, and boost ‎competitiveness. By confirming the mediating role of green finance, the study contributes to both academic ‎literature and practical banking strategies, particularly in emerging economies striving for sustainable development‎.