Author(s): Ruchika Nachaal and Parveen Singh Kalsi
The growing concern for climate change and sustainability has heightened the need for eco-friendly practices across industries, including the financial sector. Green banking has emerged as a strategic approach that integrates environmental responsibility into banking operations and services. This study examines the influence of green banking initiatives on consumer purchase behaviour among urban customers in Punjab, India. Using a descriptive research design, data were collected from 580 respondents across leading public and private sector banks. The study considered four dimensions of green banking initiatives, namely Service Trust and Reliability, Utility and Performance, Eco Benefit Awareness and Social Influence, as independent variables. Consumer purchase behaviour was assessed through three constructs, namely Decision Convenience, Trust Driven Adoption and Service Assurance. Reliability analysis confirmed strong internal consistency across all constructs. Regression results revealed that green banking initiatives significantly and positively affect consumer purchase behaviour, with Utility and Performance and Eco Benefit Awareness acting as key drivers. The findings indicate that green banking enhances operational sustainability while strengthening customer trust, service assurance and convenience, thereby fostering loyalty. The study contributes to the literature on sustainable banking by providing empirical evidence of consumer responses to green initiatives and offers practical insights for banks to align environmental strategies with customer expectations.