7 A Comparative Study on the Satisfaction Level of the Green Initiatives Undertaken by Public and Private Sector Banks Dr. G. Vincent, Associate Professor, Department of Commerce, Christ University, Bengaluru Jannath UL Firdose, Research Scholar, Department of Commerce, Christ University, Bengaluru Sushmitha S, Research Scholar, Department of Commerce, Christ University, Bengaluru ABSTRACT The liberalisation policy introduced in the early 1990s in India paved the way for international traders in Indian Banking Industry. The introduction of foreign banks and private banks in India not only created more job opportunities but also resulted in more purchasing power and greater scope for savings. Many participants in the banking and financial system stressed on improvisation of technology for its speedy processing, thanks to financial inclusion. The automation in banking through core Banking System (CBS) has resulted in digital trading without the physical transfer of funds. Keywords Core Banking System (CBS), Green Banking INTRODUCTION The expectation of the international business houses has been changing year after year. The introduction of various regulations makes it mandatory that all the corporate businesses should offer an eco-friendly product to protect the environment. The green banking is one such initiative taken at a global level that has a far-reaching impact on Indian banking sectors also. The practice of Green Banking System aims to reduce the carbon footprint from the banking business. Green banking movement undertaken by both public sector and private sector banks in India. E-payments, online banking are some of the green initiatives taken by banks. The introduction of online banking, E-payments has not only made customers life more accessible but also is one of themost significantsteps undertaken by the banks to support green initiatives. Environmental degradation or environmental damage is one of the most significant issues today. Environmentalism is a broad philosophy and a societal movement regarding concerns for environmental conservation and its safety. Many private and public banks and financial institutions have taken steps towards the green banking. It not only increases their profits, but it can also be helpful in attracting more customers as today s general people are highly concerned with the quality, environment, health etc. Thus, suitable measures should be taken for the sustainable development and CSR. The next question is about the awareness level and customer satisfaction with regards to the green initiatives undertaken by their respective banks. The various measures taken by their banks to improve the environment from getting damaged and further reduce paperwork, emission of hazardous gases. It s pretty natural that the customers would always like and opt for 24*7 services without or causing less damage to the environment. Though many steps have been undertaken by the government to improve the banking sector in their economy, still India is not entirely digital in carrying out their banking transactions. REVIEW OF LITERATURE (A., M., & V., 2016) Has concluded that Creating awareness to business people about environmental and social responsibility enabling them to do an ecologically friendly business practice. (Sahoo, Singh, & Jain, 2016) This study finds that there is more need to create awareness about green banking products adoption among the middle & senior age groups individuals that young age people. (Ahuja, 2015) Using Chi-square test for hypothesis testing they arrived at a result that both male and femalehave the same level of awareness concerning green banking. Also, they found that the primary obstacle in Green Banking is the technical issues involved due to lack of education. (M. & S, 2015). In this study, the researcher had taken top four public and private banks by their net worth as well as their projects and found that they are taking up initiatives to include Green Banking concept in their businesses.
8 (Garg, 2015) through this research, the researchers were able to find out that the idea of Green Banking in India is catching up and banks are actively looking for ways to portray themselves as a green bank. (Sharma, K., & Gopal, A study on customer s awareness on Green Banking initiatives in selected public and private sector banks with special reference to Mumbai, 2014). The authors have used SPSS technique as a statistical method. The green products were targeted and approached for the study. Among 100 respondents 42 were Male, and 58 were Female. Respondents were mainly from public sector banks like SBI, PNB and BOI and other Private Banks ICICI, HDFC and AXIS bank. From Public banks, we got 59 respondents whereas from private banks we got 41 respondents. Out of the respondents approached in SBI, 77 percent were using green banking products but were not aware of the terminology Green banking and remaining 23percent were quite aware of the green banking services provided by the Bank. Amongst Private sector banks from ICIC bank percent were not aware of the term but remaining 12 percent were aware of the green banking concept. From HDFC bank 90 percent were not aware of the name but remaining 10percent were aware of the green banking concept and lastly from Axis 96 were not informed and 4 % were knowledgeableof Green banking activities. (Meena, 2013)Has found that the survival of the banking industry is inversely proportional to the level of global warming. Therefore, for sustainable banking, Indian banks should adopt green banking as a business model without any further delay. STATEMENT OF THE PROBLEM The green initiatives taken by banks are eco-friendly initiatives that protect the environment to a large extent. Paperless transaction helps the customers ease of doing their banking transaction. National Voluntary Guidelines for Responsible Financing, which was finalised by the Indian Banking Association in the year 2015 help the banks, adopt green banking initiatives in India. In today s digital world, people are aware of the green actions taken by their banks. The present study aims at studying the awareness and satisfaction towards the green initiativesundertaken by their banks. OBJECTIVES To study the green initiatives taken by banks in India To examine the awareness level towards green initiatives undertaken by public sector banks and private sector banks by the customers. To examine the satisfaction level of customers towards the green initiatives taken by the banks RESEARCH METHODOLOGY Data Collection For this present study, a structured interview schedule was used to collect the primary data. Sample Design For this study, 120 respondents were beenselected on simple random method. Statistical Tools Tools such as One-Way ANOVA, Krushkal Walls Test and percentages were used. ANALYSIS Awareness about the green initiatives taken by banks Many banks have started taking green initiatives in offering their services. Below is the table explaining the awareness level among the sample respondents towards the green initiatives undertaken by their banks? Table 1The degree of awareness level of green initiatives taken by the banks S. No. Yes No 1 85 70.8 2. 35 29.2 Total 120 100.00 Source: Primary data From the above table, it is inferred that majority of the respondents (85 percent) are aware of the green initiatives taken by their banks. Ease of carrying out the online transaction Table 2 Comfortable in carrying out all the online transaction S. No. Yes No 1 101 84.2% 2. 19 15.8% Total 120 100 % Source: Primary data
9 From the above table, it is known that 84.2 percent of the respondents expressed their opinion that they are comfortable is carrying all the online transactions. 19 respondents (15.8 percent) are not satisfied in carrying out online transaction. PREFERENCE TOWARDS BANKS Customers preference towards public sector banks and private sector banks depends on many factors such as quality of services offered,speed with which the transaction is carried out, and perception etc. Following is the table explaining the preference of public sector and private sector banks by the sample respondents. Table 3 Preference towards public and private sector Banks by sample respondents S. No. Preference No. of Respondents % 1 Public Sector Banks 24 20% 2. Private Sector Banks 40 33.33% 3. Both 56 46.77% Total 120 100.00 Source: Primary Data Reasons for choosing a particular Bank The entry of private sector banks and foreign banks in India has created healthy competition among the players in attracting the customers. The services and location are some of the reasons for choosing for banking with them. Table 4 Reasons for choosing Banks S. No. Preference No. of Respondents % 1 Trust/Reliability 39 32.5 2. Quick and Fast service 48 40% 3 Behaviour of staff 8 6.7 4 Location 25 20.8 120 100.00 Source: Primary Data RESEARCH HYPOTHESIS There is significant variance between bank account of the respondents and their Overall perception of consumer awareness. NULL HYPOTHESIS H0: There is no significant variance between bank account of the respondents and their Overall perception of consumer awareness. H1: There is significant variance between bank account of the respondents and their Overall impression of consumer awareness. Table 5 To find out the variance between the age of the respondents and their Overall perception of consumer awareness ONEWAY ANOVA Mean Standard Deviation SS DF MS Statistical Inference Flawless/correct operations Between groups.492 3.164 18-30 years (100) 2.57 1.018 F = 0.155 31-40 years (14) 2.64 1.216 0.926>0.05 41-50years (4) 2.25.500 Within groups 122.974 116 1.060 Understanding & replying queries correctly Between groups 2.535 3.845 18-30 years (100) 2.56 1.057 31-40 years (14) 2.50 1.092 41-50years (4) 1.75.500 Within groups 127.390 116 1.098 F = 0.769 0.513>0.05
10 Communication skills/positive approach Between groups.000 3.000 18-30 years (100) 2.50 1.030 31-40 years (14) 2.50 1.160 41-50years (4) 2.50.577 Within groups 124.000 116 1.069 General assessment of the service Between groups 1.510 3.503 18-30 years (100) 2.51.969 31-40 years (14) 2.50 1.092 41-50years (4) 2.00.816 51-60 years (2) 3.00.000 Within groups 110.490 116.952 Behaviour of the staff Between groups 1.128 3.376 18-30 years (100) 2.72.996 31-40 years (14) 2.57 1.089 41-50years (4) 2.25.500 Within groups 114.839 116.990 Time taken to process the transaction Between groups 2.190 3.730 18-30 years (100) 2.82 1.158 31-40 years (14) 2.50 1.092 41-50years (4) 3.25 1.500 Within groups 157.010 116 1.354 Accessibility Between groups 2.200 3.733 18-30 years (100) 2.55 1.029 31-40 years (14) 2.50.941 41-50years (4) 2.25 1.258 51-60 years (2) 3.50.707 Within groups 121.500 116 1.047 General awareness about the service provided by the branches Between groups 5.603 3 1.868 18-30 years (100) 2.73 1.162 31-40 years (14) 2.07.616 41-50years (4) 2.75.957 Within groups 143.389 116 1.236 Ease of use/navigation Between groups 3.792 3 1.264 18-30 years (100) 2.33 1.190 31-40 years (14) 1.86 1.099 41-50years (4) 2.25.500 51-60 years (2) 3.00.000 Within groups 156.574 116 1.350 Speed of page loading Between groups 3.648 3 1.216 18-30 years (100) 2.56 1.067 31-40 years (14) 2.07.730 41-50years (4) 2.75.500 F = 0.000 1.000>0.05 F = 0.528 0.664>0.05 F = 0.380 0.768>0.05 F = 0.656 0.539>0.05 F = 0.700 0.554>0.05 F = 1.511 0.215>0.05 F = 0.937 0.425>0.05 F = 1.153 0.331>0.05
11 Within groups 122.319 116 1.054 Variety of transactions Between groups 4.328 3 1.443 18-30 years (100) 2.47 1.058 31-40 years (14) 1.93.616 41-50years (4) 2.50.577 Within groups 118.839 116 1.024 General assessment of the service Between groups 5.246 3 1.749 18-30 years (100) 2.46.999 31-40 years (14) 1.86.770 41-50years (4) 2.50.577 Within groups 109.554 116.944 Overall perception of customer satisfaction Between groups 173.640 3 57.880 18-30 years (100) 30.7800 9.81092 31-40 years (14) 27.5000 8.71559 41-50years (4) 29.0000 5.88784 51-60 years (2) 34.5000 9.19239 Within groups 10705.160 116 92.286 F = 1.408 0.244>0.05 F = 1.851 0.142>0.05 F = 0.627 0.599>0.05 Since the calculated value is more than the table value (P>0.05). So, the research hypothesis is rejected, and the null hypothesis is accepted. Table 6 To find out the variance between the age of the respondents and their overall perception of consumer awareness Kruskal Wallis Test was used for the above table Age 18-30 years 31-40 years 41-50 years 51-60 years Total (n=100) (%) (n=14) (%) (n=4) (%) (n=2) (%) (n=120) (100%) Understanding and replying queries correctly Low 57 47.5% 8 6.7% 4 3.3% 1 0.8% 70 58.3% High 43 35.8% 6 5.0% 0 0.0% 1 0.8% 50 41.7% Communication skill/ positive approach Low 11 9.2% 3 2.5% 0 0.0% 0 0.0% 14 11.7% High 89 74.2% 11 9.2% 4 3.3% 2 1.7% 106 88.3% General assessment about the behaviour Low 12 10.0% 2 1.7% 1 0.8% 0 0.0% 15 12.5% High 88 73.3% 12 10.0% 3 2.5% 2 1.7% 105 87.5% Behaviour of the staff Low 7 5.8% 2 1.7% 0 0.0% 0 0.0% 9 7.5% High 93 77.5% 12 10.0% 4 3.3% 2 1.7% 111 92.5% Time taken to process transaction Low 7 5.8% 2 1.7% 1 0.8% 0 0.0% 10 8.3% High 93 77.5% 12 10.0% 3 2.5% 2 1.7% 110 91.7% E-lobby and branch banking Low 12 10.0% 2 1.7% 1 0.8% 0 0.0% 15 12.5% High 88 73.3% 12 10.0% 3 2.5% 2 1.7% 105 87.5% Statistical inference X2=2.996 Df=3.403>0.05 X2=2.130 Df=3.898>0.05 X2=0.921 Df=3.815>0.05 X2=1.452 Df=3 0.953>0.05 X2=2.518 Df=3 0.351>0.05 X2=1.921 Df=3.215>0.05
12 Awareness about service Low 11 9.2% 2 1.7% 0 0.0% 0 0.0% 13 10.8% High 89 74.2% 12 10.0% 4 3.3% 2 1.7% 107 89.2% Internet banking Low 24 20.0% 6 5.0% 0 0.0% 0 0.0% 30 25.0% High 76 63.3% 8 6.7% 4 3.3% 2 1.7% 90 75.0% Speed of page loading Low 16 13.3% 2 1.7% 0 0.0% 0 0.0% 18 15.0% High 84 70.0% 12 10.0% 4 3.3% 2 1.7% 102 85.0% Variety of transactions Low 16 13.3% 3 2.5% 0 0.0% 0 0.0% 19 15.8% High 84 70.0% 11 9.2% 4 3.3% 2 1.7% 101 84.2% General assessment of services Low 13 10.8% 5 4.2% 0 0.0% 0 0.0% 18 15.0% High 87 72.5% 9 7.5% 4 3.3% 2 1.7% 102 85.0% Overall customer satisfaction Low 46 38.3% 10 8.3% 1 0.8% 1 0.8% 58 48.3% High 54 45.0% 4 3.3% 3 2.5% 1 0.8% 62 51.7% X2=0.905 Df=3.607>0.05 X2=4.434 Df=3.721>0.05 X2=1.143 Df=3 0.341>0.05 X2=1.460 Df=3 0.544>0.05 X2=6.084 Df=3 0.729>0.05 X2=4.083 Df=3 0.650>0.05 FINDINGS The above table reveals that there is significant variance between the age of the respondents and their Overall perception of consumer awareness. Hence, the calculated value is less than table value (P>0.05). So, the research hypothesis is accepted, and the null hypothesis is rejected. CONCLUSIONS Most of the banks have adapted themselves to changing needs of the societal and ecological requirements. The green banking has become the need of the hour nowadays. In China, the bank's grants loan to projects which are ecofriendly Bangladesh charges less interest to environmentally friendly projects. The government has urged the public-sector banks, NBFC, to go for the electronic payment system. There are many initiatives taken by the banks, but still, India has to go a long way to adopt complete green banking. REFERENCES [1] A., M. C., M., N., & V., P. (2016). Recent Trends in Indian Banking- Green Banking Initiative in India. International Journal of Science Technology and Management, 369-374. [2] Ahuja, N. (2015). Green banking in India: A Review of Literature. International Journal for Research in Management and pharmacy, 11-16. [3] Garg, S. (2015). Green Banking: An Overview. Global Journal of Advanced Research, 1291-1296. [4] M., R., & S, S. (2015). Green Banking Initiatives of Commercial Banks in India. International Research Journal of Business and Management, 74-81. [5] Meena, R. (2013). Green Banking: As Initiative for Sustainable Development. Global Journal of Management and Business Studies, 1181-1186. [6] Sahoo, D. B., Singh, A., & Jain, N. (2016). Green Banking in India: Problems and Prospects. International Journal of Research- Granthaalayah, 92-99. [7] Sharma, N., K., S., & Gopal, D. R. (2014). A study on customer s awareness on Green Banking initiatives in selected public and private sector banks with special reference to Mumbai. IOSR Journal of Economics and Finance (IOSR-JEF), 28-35. [8] Sharma, N., K., S., & Gopal, R. (2014). A Study on customer's awareness on Green Banking initiatives in selected public and private sector banks with special reference to Mumbai. IOSR Journal of Economics and Finance (IOSR-JEF), 28-35.