GREEN BANKING PRACTICE IN BANGLADESH

Prepared by
Name: Mazharul Islam
ID: 112011084

Supervised by
Shubhankar Shil
Assistant Professor
ULAB School of Business

Submitted in Partial Fulfillment of the Requirements for the Degree

Bachelor of Business Administration

Date: August 9, 2015

Letter of Transmittal
August 9, 2015
Shubhankar Shil
Assistant Professor
ULAB School of Business
University of Liberal Arts Bangladesh

Subject: Submission of Internship Report on Green Banking Practice in Bangladesh

Dear Sir,
In order to your advice I have prepared internship report on Green Banking Practice in
Bangladesh It has been a great contentment for me to have the opportunity to apply my
academic knowledge in practical field. It was such an enjoyable work for me. I believe that this
work has been enriched my knowledge and experience.
I have tried my best to put careful effort for the preparation of this report. I will be glad to
provide that any time to you convenience. You kind advice will encourage me to do another
research in future.

Thank You
Sincerely,
Mazharul Islam
ID: 112011084
ULAB School of Business

ii

Internship Report Approval Form

Student Name Mazharul Islam

ID No. 112011084

Major:

Year: 2015

Accounting

Local Phone: +8801733832800

Email: mazarul.islam.bba@ulab.edu.bd
--------------------------------------------------------------------------------------------------------------------INTERNSHIP/PROJECT INFORMATION
Internship
Organization/Project: Basic Bank Ltd.
Internship /Project Report Topic: Green Banking Practice in Bangladesh
______________________________________________________________________________
________________________________________________________________________
Semester (Tick one): spring 2015
summer 2015
fall 2015
---------------------------------------------------------------------------------------------------------------------

SUPERVISOR APPROVAL
(Please place a Tick)
Approved

Not Approved

Partial Re-write

Full Re-write

Remarks (If Not Approved/Pretrial/Full Rewrite):

______________________________________________________________________________
______________________________________________________________________________
Signature: __________________________________________

Date: ________________

Name: Shubhankar Shil

E-mail: shubhankar.shil@ulab.edu.bd

Title: Assistant Professor

Phone: +8801712298498

iii

Declaration

I do hereby declare that the work presented in this internship report titled Green Banking
Practice in Bangladesh is an original work done by me under the supervision of Shubhankar
Shil Assistant professor of ULAB School of Business, for partial fulfillment of Bachelor of
Business Administration degree; as a part of academic curriculum.
No part of this report has been previously submitted to any other University/
College/Institution/Organization for any academic certificate/degree/diploma/qualification.

________________________________
Mazarul Islam
ULAB School of Business
University of Liberal Arts Bangladesh

iv

PLAGIARISM DECLARATION
1. I know that plagiarism means taking and using the ideas, writings, works or
inventions of another as if they were ones own. I know that plagiarism not only
includes verbatim copying, but also the extensive use of another persons ideas
without proper acknowledgement (which includes the proper use of quotation marks).
I know that plagiarism covers this sort of use of material found in textual sources and
from the Internet.
2. I acknowledge and understand that plagiarism is wrong.
3. I understand that my research must be accurately referenced.
4. This assignment is my own work, or my groups own unique group assignment. I
acknowledge that copying someone elses assignment, or part of it, is wrong, and that
submitting identical work to others constitutes a form of plagiarism.
5. I have not allowed, nor will I in the future allow, anyone to copy my work with the
intention of passing it off as their own work.
Name: Mazharul Islam
ULAB ID # 112011084
Signature:
Date:

Acknowledgement

First of all, I would like to express my truthful gratitude to the Almighty Allah for giving me the
ability for the successful completion of the report on Green Banking Practice in Bangladesh
This internship report has prepared through continuous study during my internship period. This
work would not be possible without the cooperation and assistance of some generous hands.
Firstly I would like to thanks my honorable supervisor professor Shubhankar Shil for his proper
direction and support regarding my internship report. He has given a lot of assistance and
guidelines in coordinating the whole report. Without his time and guidelines it would not be
possible to prepare such good report.
Secondly I would like to extend my gratitude to all the employees of BASIC Bank Ltd at
Dhanmondi Branch. Specially Md. Humayun Kabir Operation Manager of Dhanmondi Branch,
where he did some helps and provided some relevant information in my internship period for
prepared my internship report on Green Banking practice. Mahmud Khan assistant manager,
Shohidul Alam and Kazi Tarana Islam officers they have also provided me all kind of
necessary information. One more special thanks goes to Mahfuza Sultana Officer, he gives me
a lot of supports in my internship period in Basic Bank ltd at Dhanmondi Branch

vi

Executive Summary
In this study about green banking practices in Bangladesh divided into two parts where first part
A discussed about internship experiences and part B discussed about the green banking practice
in Bangladesh. Part A of this study contains is organizational overview and the part B deals with
the analysis and finding of green banking.
At the first chapter of part A is organizational overview where details about Basic Bank ltd.
Second chapter is internship roles and responsibilities where discuss about my internship roles
and responsibilities. Chapter three talk about my observation and recommendation about my
internship organization.
This study Part B first chapter has been discussed about the research methodology, research
design and sampling. Where my second chapter is theoretical Background, which manly done by
literature review of many writer. Third chapter analysis and finding of Green banking practice in
Bangladesh where in details about green policy, green activities and green banking service in
private commercial bank. At last chapter is recommendation and conclusions, in
recommendation part I have been give some recommendation about green banking practice.

vii

Table of Content
SI NO

Particulars

Page no.

Acknowledgement

vi

Executive summary

vii
Part A
Chapter one: Organization Profile

A1.1

At glance of BASIC Bank

A1.2

Board of Director

A1.3

Mission of BASIC Bank

A1.4

Objectives of BASIC Bank Ltd

A1.5

Corporate Strategy

A1.6

Organizational Goals and objectives

Slogan of BASIC Bank limited

Vision of BASIC Bank Limited

A1.7

Functions of BASIC Bank

A1.8

SOWT of BASIC Bank Ltd

A2

Chapter two: Interns Role and Responsibilities

A3

Chapter three: Observations, Recommendations and Conclusion

A3.1

Observation

A3.2

Recommendations

10
Part B

B1
B1.1

Chapter One: Research Design

Objectives

10
11

viii

B1.2

Methodology

11

B1.3

Sources

11

B1.4

Scope

12

B1.5

Sampling

12

B1.6

Limitation

12

B2

Chapter Two: Literature Review

13-15

B3

Chapter Three: Analysis Findings

16

B3.1

Online Banking

16

B3.2

Status of online Banking

17

B3.3

Green Mobile Banking

17

B3.4

Green Finance

18

B3.5

Green Banking stakeholders

19

B3.6

Banks Green activities

19

B3.7

ATM Facilities

20

B3.8

Environmental Adoption

20

B3.9

Green Marketing

20

Chapter Four: Recommendation and Conclusion

B4.1

Recommendations

21

B4.2

Conclusion

21

Reference

22

ix

List of Tables
Table 01: Status of online Banking
Table 02: Category wise contributions of bank towards green financing
Table 03: ATM Facilities

List of Figure
Figure 01: Green Banking stakeholders

Part A
Chapter one: Organization Profile

Basic Bank is one of the leading banking in our country. Now Basic Bank is part of Government
Bank under the central bank. First of all, BASIC Bank Limited (Bangladesh Small Industries and
Commerce Bank Limited) started its operation as a joint venture enterprise. Where two join
ventures BCC foundation has 70 percent and Government has 30 percent share of this bank. In
1992 Bangladesh Government has decided to buy the 70 percent share from BCC foundation.
Because of BCC foundation was nonfunctional following the termination of the BCCI. After that
situation Bangladesh Government get the ownership of 100 percent share of this Bank.
The BASIC Bank Limited was established as a banking company under the company Act 1913
and launched its operation in January 1989.It is governed by the Banking Companies Act 1991
where Basis Bank was the soundest banks in Bangladesh. When BASIC Bank is unique in its
objectives because the bank mixes its development and commercial banking functions together.
They maintain a steady growth in client base and also they maintain high retention rate of clients
year by year for its products and services. When Basic Bank launch in the Banking sector that
time they have diversified products and services in both liability and asset sides. Mainly they
offer a wide range of lending products related to development of small and medium and
entrepreneurs to attract from varied economic fields.
Basic Bank started their promotion of products and services special importance is given to
individual customers for providing personalized services. Basic Bank planning was to develop
our economy in our country. After this situation Basic Bank has already made a distinct mark in
the area of Private Sector Banking through personalized product and service for innovative
practices and dynamic approach by the efficient Management.

A1.1 At glance of BASIC Bank Ltd.

Date of Incorporation
Date of Inauguration of operation
Registered office

August 2, 1988
January 21, 1989
Bana Shilpa Bhaban 73, Motijeel
Commercial Area
Dhaka-1000, Bangladesh.
Sena Kalyan Bhaban(6th floor), 195,
Motijeel Commercial Area
Dhaka-1000, Bangladesh.
Mr. Sheikh Abdul Hye Bacchu
Mr. Kazi Faqurul Islam
68
2,145
Deposit scheme, Credit facility and Foreign
exchange services
Tk. 2,946.98million (2013)
Tk. 976.11 million (2013)
Government of Bangladesh
KASTLE
Member of SWIFT
41.02

Head Office

Name of the chairman of the Board

Name of Managing Director
Number of Branches
Number of Employees
Services provided
Paid up capital
Profit after tax and provision
Ownership
Banking software used
Technology used
Earnings per share

A1.2 Board of Director

Chairman

Mr. Sheikh Abdul Hye Bacchu

Mr. Fakrul Islam
Mr. Shubhashish Bose
Mr. Shyam Sunder Sikder
Ms. Neelufer Ahmed
Ms. Quamrum Naher Ahmed
Mr. AKM Rezaur Rahman
Mr. Md. Anwarul Islam
Mr. AKM Kamrul Islam
Mr. Anis Ahamad
Mr. Kazi Faqural Islam

Directors

Managing Director

A1.3 Mission of BASIC Bank Ltd.

The mission of any company is the unique purpose that sets it apart from other companies of its
type and identifies the scope of its operations.
9 BASIC Bank Ltd. intends to provide better benefits and good returns to its customers and
shareholders.
9 It intends to meet the needs of its clients and enhance its profitability by creating
corporate culture.
9 BASIC Bank Ltd. aims to ensure its competitive advantage by upgrading banking
technology and information system.
9 It provides high financial services to strengthen the well-being and success of individual,
industries and business communities.
9 BASIC Bank Ltd. believes in strong capitalization.
9 It maintains congenial atmosphere for which people are proud and eager to work with
BASIC Bank Ltd.
9 It believes in disciplined growth strategy.
9 BASIC Bank Ltd. encourages investors to boost up share market.
9 It intends to play more important role in the economic development of Bangladesh and its
financial relations with the rest of the world by interlining both domestic and
international operations.
A1.4 Objectives of BASIC Bank Ltd.
9 BASIC Bank Ltd. is unique in its objective. It maintains both operational objectives and
organizational objectives. Operational objective of BASIC Bank Limited are as follows:
9 As mentioned earlier, BASIC Bank Ltd. main priority is promoting and financing
development of small and cottage industries.
9 The Bank is to provide full range of commercial banking services including collection of
deposits, such as current, savings, STD, and FDR; short term trade finance, handling of
import and export business.
9 The bank offers Micro credit to the urban poor through linkage with NGOs with a view
to facilitating their access to the formal financial market.
9 BASIC Bank Ltd. is attempting to introduce online banking to keep pace with other
commercial banks.

A1.5 Corporate Strategy

The corporate strategy of any organization plays a vital role on the companys performance and
lead to the way of being in growth prospect of the company. The corporate strategy of Basic
Bank Ltd. is as follow9 Financing establishment of small units of industries and business and facilities their
growth
9 Small Balance Sheet size compared of quality assets.
9 Steady and sustainable growth.
9 Investment in a cautious way.
9 Adoption of new banking technology.
9 Adoption of online service.

A1.6 Organizational Goals and objectives: BASIC Bank Ltd. always ready to maintain the
highest quality of services by up grading banking technology prudence in manage & by applying
high standard of business ethics through its established commitment and heritage. Objectives of
the BASIC Bank Ltd. are given below:
9 To employ funds for profitable purposes in various fields with special emphasis on
small industries.
9 To undertake project promotion to identify profitable areas of investment.
9 To established linkage with other institutions which are engaged in financing micro
enterprises.
9 To co-operate and collaborate with institutions entrusted with the responsibility of
promoting and adding SSI sector.
9 BASIC Bank Ltd. is committed to ensure its contribution to national economy by
increasing its profitability through professional disciplined growth strategy for its
customer and by creating corporate culture in international banking area.

9 The objective of BASIC Bank Ltd. is not only to earn profit but also to keep the
social commitment and to endure its co-operative to the person of all level to the
businessman, industrialist especially who are establishing large scale industry by
consortium and the agro-based export oriented medium & small scale industries by
self-inspiration.
9 BASIC Bank Ltd. as the first and largest private bank in committed continues its
endeavor by rapidly increasing the investment of honorable shareholders into assets.
9 BASIC Bank Ltd. believes in building up strong-based capitalization of the country.
9 BASIC Bank Ltd. is playing a vital role in Socio-Economic development of
Bangladesh by way of linkage with rest of the world by developing world wide
network in domestic and international operations.

Slogan of BASIC Bank limited: Serving people for progress.

Vision of BASIC Bank Limited: Provide the best banking services to all kinds of people and
contribute for economic development of the country.

A1.7 Functions of BASIC Bank Ltd.

9 Term loans to industries especially to small scale enterprises.
9 Full-fledged commercial banking service including collection of deposit, short term trade
finance, working capital finance in processing and manufacturing units and financing and
facilitating international trade.
9 Technical support to Small Scale Industries (SSI) in order to enable them to run their
enterprises successfully.
9 Micro credit to the urban poor through linkage with Non-Government Organization
(NGOs) with a view to facilitating their access to the formal financial market for the
mobilization of resources.
9 In order to perform the above tasks, BASIC Bank Ltd. works closely with its clients, the
regulatory authorities, the shareholders (GOB), banks and other financial institutions.
9 Very soon introducing online banking to its clients.

Departments wise Activities of Basic Bank Limited has been divided into three departments.
9 General Banking (GB)
9 Loans and Advances
9 Foreign Trade/Exchange
General Banking Activities: General Banking activities are common banking activities in our
country Banking sector.
9 Cash Management
9 Remittance
9 Cheque issue
9 Payment order/ Demand Draft
9 Correspond with Head office and other banks
9 Account maintenances
9 In house management (HR)
Loans and Advances activates: Loan and advance is important for banking activities.
9 Loan management
9 Microcredit
9 SME Loan
9 Finance Loan
9 Loan monitoring
Foreign Trade/Exchange activities:
9 Trade Finance/ Cash import
9 Providing L/C and other Facilities
9 Back to back L/C providing for Export

A1.8 SOWT of BASIC Bank Ltd.

Strength
9 Interest rate is comparatively low from other Banks.

9 This Bank has good reputation in banking industry compared to other Govt. Banks.
9 Easy and Quick loan facility has been provided.
9 Entrance levels of Employees are highly educated.
9 Employee turnover is comparatively low from other Banks.
9 The number of deposit, loan and advance day by day increased.
9 Always encourages their employees to do better work
Weakness
9 Excessive dependency on term deposit.
9 Inadequate delegation of power
9 IT infrastructure is not up to date
9 Human resource Department is not dynamic
9 Highly exposed to small scale business.
9 They do not expose the advertising and promotion
9 Informal recruitment policy is filling up its lower and some mid-level position.
Opportunity
9
9
9
9
9

BASIC Bank Ltd. get started their online service it can part of competitive market.
ATM service already established all over the country.
Emphasis on the deposit collection and loan and advanced
Initiative steps prompt the public service and customer service
Highly emphasis on the group works

9 BASIC Bank Ltd. can exploit the potentiality of Credit Card Business.
9 Set up new branches in rural area

Threats
9 Limited number of rural and ad branch
9 Employee benefit is not comparatively high
9 Increased competition in the market for public deposits
9 Online service may turn various products obsolete like DD and TT.
9 Their employee is not technically established

A2 Chapter two: Interns Role and Responsibilities

I have learnt much more things from my internship program which was really important for my
future job. I had the opportunity during the program to get a close look at the various banking
activities along with all other financial activities of the BASIC Bank Limited at Dhanmondi
branch. All I have learnt is about various departments of this bank, where general Banking
activities and credit section activities. Overall, the whole program helped me both understanding
the banking activities.
9 It is required that an intern will deal with various departments of an organization. The
variety of tasks I have performed in the Branch.
9 While I was performing my internship program within the bank, I was being treated as an
employee like others in the organization. I got sufficient assistance from the working
people in terms of acquiring enough idea about their working strategy. This enhanced my
knowledge, skill and the power of implementing of my academic knowledge in a
workplace.
9 As a fully customer oriented organization, the Basic Bank Limited operates great
customer service where the communication skill is one of the fundamental factors.
Treating every customer in a bank is customized and unique way is a challenging task as
I observed while working with the staffs of the branch.

9 It was not the exception that a workplace could have people from different cultural
background within it. While I was working in Basic Bank Limited at Dhanmondi Branch
where has mixed culture of the organization and coping up with the people from different
background really prepared me with knowledge of workplace diversity. I have also
observed the customers from different cultures are being served by the bankers and
gained the skill.
While doing this internship, I have also learned lots of new things, which was totally unknown for me.
Those are given below:
9 Increased trust, confidence and professionalism
9 Improved subject area and discipline knowledge
9 Developing knowledge and skills

Chapter Three
Observations, Recommendations and Conclusion
A3.1 Observation:
9 BASIC Bank Ltd. in branch provided all over the country for better online banking service.
9 BASIC Bank Ltd. has 101 branches in all over the country. There have Also the Bank has
two off-shore banking units.
9 To facilitate international trade transactions in BASIC Bank Ltd. by wide correspondent
network
9 BASIC Bank Ltd. introduced different types of quick service for their customers like Balance
Enquiry, Mini Statement, Exchange Rate, and PIN Change.
9 At present the number of employees in BASIC Bank Ltd. are 1900.

A3.2 Recommendations:
9 The research and development should be introduced in large ranges.
9 Basic Bank Ltd. have to continuous product and service innovation for their competition
9 To generate the international trade transactions for make stronger association with
Bangladesh Bank, foreign bank and multination bank.
9 Have to increase the popularity of BASIC Bank by increase promotion, advertisement, bill
board, and sponsor at right now.

Part B
B1 Chapter One: Research Design

Background: The concept of Green Banking is evolved in western countries and now it is

practices in most of the countries of the world. The world Green indicates a broad range of
social, ethical and environmental dimensions. Green Banking is similar to normal banks which
consider the entire social and environmental or ecological factor with an aim to protect the
environment and conserve natural resources property. It is also called an ethical or sustainable
bank. The main theme of twenty first century is the green safety and sustainable ecological
balance. It has become a vital issue for all functional areas including banking. Bangladesh is one
of the most environmental affected countries in the world. For this reason, Bangladesh Bank
improved a Green Banking policy in 2011. The aim of this study is the present status of the
banks about Green Banking to save the environment as well as increase financial sustainability.
Nowadays global warming is a great issue for the world. Green Banking plays an important role
to reduce global warming.

10

B1.1 Objectives:
This study mainly relate with the Green Banking practice in Bangladesh. Where this study aims
to clarify that the Green Banking practices in banking sector.
Primary objective: Primary objective of this study is fulfilled the partial requirement of BBA
degree from ULAB school of Business.
Secondary Objective:
9 To analysis the green banking practices in Bangladesh.
9 To justify the prospect of green banking practice in Bangladesh.

B1.2 Methodology:
This report based on the secondary data which will be collect from annual report of Dutch
Bangla Bank Ltd., Trust Bank Ltd., United Commercial Bank Ltd., Islamic Bank Ltd., Pubali
Bank Ltd., Shajalal Islamic Bank Ltd. These Banks was sleeted on the basic on random
sampling.
Newspaper and articles will be analysis for problem and findings of Green Banking practice.

B1.3 Sources:
There two types of data I have used in my report. Which data I have collected by myself these
are my primary data. Another type of data is secondary data which has been collected from
secondary sources. Where these data are already used in another studies, researches and articles,
so its called secondary data.
Primary data:
1. Interview
2. Face to face conversation

11

Secondary data:
1. Newspaper
2. Supplement
3. Literature review
4. Article
5. Web supplement
6. Book on the green Banking
7. Bangladesh Bank publications

B1.4 Scope:
I have been working BASIC Bank Ltd. Dhanmondi Branch where I have many scope to learn
about green banking from their officer.

B1.5 Sampling:
In this study based on the random sampling where it is selection on the Bangladeshi banking
section of which bank are establishing on their self as leading bank in this country. Dutch
Bangla Bank Ltd., Trust Bank Ltd., United Commercial Bank Ltd., Islamic Bank Ltd., Pubali
Bank Ltd., Shajalal Islamic Bank Ltd.

B1.6 Limitation:
There have some limitation of this study. Time limitation is one of them. There three months is
enough for a quality report. There wont have interview as primary data sources. But the findings
of study are reliable to authentic sources.

12

Chapter Two: Theoretical Background

B2 Literature Review
Islam and Das (2011) describe as; the green banking concept is evolved in western countries
and now is practiced in most of the countries in the world. It indicates endorsing environmentfriendly practices and reducing carbon footprint from banking activities. In this report they also
discuss Green banking, Green finance, Environment, Corporate social responsibility (CSR) and
Online Banking etc. Atiur Rahman (2010) focused in his paper about present momentary and
credit policy of Bangladesh Bank towards attaining broader financial enclosure access to
financial services for all like trade finance, digitalization of the financial sector, channeling
liquidity into productive and supply augmenting investments including agriculture, SMEs, Green
Banking and corporate social responsibility (CSR) activities that reduce poverty and help to
acquire to the targeted vision of digital Bangladesh by 2012 the year golden jubilee of their
independence. Suresh Chandra Bihari (2011) state that Green banking improve corporate
social responsibility (CSR) and protect the environment. He also emphasized that a company will
provide a lone when environmental safety standers are followed, and the purpose of Green
banking can be implement through the use of technology and policy. Alice Mani (2011)
indicated that banks have a major responsibility to reduce carbon emission as Socially
Responsible Corporate Citizens (SRCC). Banks can practices and initiatives of green banking.
The author examined and compared the light of their compliance and commitment to protect
environment and environment friendly projects in India. Green Banking policy of BASIC Bank
Limited Bangladesh (2011) was to increase consciousness over climate change, environmental
degradation, need for urgent measures for sustainable development to be identified by some of
the stakeholder in the world. Banking system holds a unique position that contributes to protect
environment from pollution and large bank of the country should be efficient in energy use,
water consumption and waste reduction.

13

Ullah (2013) says that one of the least developed countries Bangladesh is the worst sufferer of
world environmental pollution through industrialization of the western countries. Under such
extreme environmental threat the financial sector of Bangladesh is playing a key role as one of
the important stake-holder of the economy enforcing the businessmen/ industrialists of the
country to design their various strategy/action plans keeping the crucial environmental issues. He
also describe about Green Banking, Environmental Issues, Bangladesh Bank Policy,
Comparative Analysis. Thomber (2011) argued that environment plays a vital impact of bank
external activity though it is tough to estimate. Banking sector should encourage investments that
are environmentally responsible and careful. Sahoo and Nayak (2008) says the bank should use
appropriate technologies and management systems in order to Green Banking that protect
environment and ecology properly. Hayder and Verma (2012) state that Indian banking is
realizing a need from a shift from the profit, profit and profit motive to planet people and profit.
The purposes of green banking are pursuing of financial and business police that are not
hazardous to environment and use those resources that avoid waste and give more priority to
environment and society. Richard Buckminster Fuller, 16 November 2012 Green Banking is
also called ethical banking because it involves in social and environmental factors. The main
objective of Green banking is to protect environment and society from use the organizational
resources. Green Banking is a concept that ensures future sustainability of our spaceship earth.
Before giving lone, it evaluates all the factors of the project either it is environment friendly or
not Green finance as a branch of Green Banking ensures efficient resource and low carbon
emission, green industry and green economy in general. Green Banking not only affects their
own initiatives but also affect socially responsible behavior of other business.
Jinwala (2013) says that Green Banking in INDIA, the environmental angle banks start to
control state pollution. Many banks are developing online banking as a form of Green Banking
less paper work and less driving to branch offices are main benefits of online banking. Green
banking also reduces the expenditure of bank and branch by minimizing the use of paper work
and mailing fees. Green Banking mitigates the credit risk, legal risk and reputation risk.

14

Hopner (2010) state that Green Banking plays an important role of social, environmental and
issues. In the book Sustainable Finance and Banking (2001), Marcel Jeucken has identified
four types of action that banks should take for sustainability such as defensive and sustainable
banking. In the model, the first three terms are also inter-related to Green or socially responsible
banking system.
Vikas Nitin Nayak & Ankil Goel (2014) describe as; society is facing most complicated issues
of climate change and people are more conversant with global Warming and its inherent
consequences on human life. For survival and better live, environmental management should be
in a sustainable manner. It is not only the concern of government and direct polluters but also
other stakeholders like financial institution such as banks, which plays an important role in the
development of the society. There is need banks to adopt green strategies to protect environment.
Because all the nation are closely inter-related to the environment.

15

B3 Chapter Three: Analysis Findings

The concept of Green Banking is evolved in western countries and now it is practices in most of
the countries of the world. The world Green indicates a broad range of social, ethical and
environmental dimensions. Green Banking is similar to a normal bank which considers the entire
social and environmental or ecological factor with an aim to protect the environment and
conserve natural resources property. It is also called an ethical or sustainable bank. The main
theme of twenty first century is the green safety and sustainable ecological balance. It has
become a vital issue for all functional areas including banking. Bangladesh is one of the most
environmental affected countries in the world. For this reason, Bangladesh Bank improved a
Green Banking policy in 2011. The aim of this study is the present status of the banks about
Green Banking to save the environment as well as increase financial sustainability. Nowadays
global warming is a great issue for the world. Green Banking plays an important role to reduce
global warming.

B3.1 Online Banking:

Online banking (OLB) is an electronic payment system allowing individual to perform banking
activities at home via the internet. Online banking is also referred as internet banking, e-banking,
virtual banking and by other terms. OLB helps customers to perform account transfers, balance
inquiries, bill payment and stop payment request and some even offer online lone and credit card
application. Account information can be accessed anytime, day or night and can be done for
anywhere. Online banking is growing popular day by day in Bangladesh. A number of privet and
local bank of Bangladesh have launched online banking system to fulfill the demand of the
customer. Amongst those HSBC, City Bank, BRAC Bank, Bank Asia, Jamuna Bank, Jonota
Bank, Southeast Bank, AB Bank, First Security Bank, Mercantile Bank, Prime Bank etc. are in
action already.

16

B3.2 Status of online Banking

Types of Banks

Total number of

State owned

Private

Foreign

Specialized

Total

commercial

commercial

commercial

development

Banks

banks

Banks

Banks

3,469

3224

73

1433

8199

168

2925

73

60

3226

4.84

90.73

100.00

4.19

39.35

Branches
Number of
branches with
online facility
% of branches
with online
Banking facility
Table 01: B3.2 Status of online Banking

Source: Bangladesh Bank Website

B3.3 Green Mobile Banking:

Mobile banking refers to the use of a mobile phone or table that helps customers to conduct a
number of financial transactions. Customer can perform several financial functions conveniently
and security from their mobile and does not require on internet connection. customer can check
account balance, review recent transaction, transfer funds, pay bills, locate ATMs, deposit
cheques, manage investments etc. mobile banking is more secure than online or internet banking.
Dutch Bangla Bank limited is the pioneer and first bank to offer banking facilities through a wide
range of mobile phone in Bangladesh. Beside, BRAC Bank, Prime Bank, Islami Bank
Bangladesh, Trust Bank, Bank Asia, Dhaka Bank, Mercantile Bank, AB Bank, Southeast Bank,
United commercial Bank etc. have launched mobile banking.

17

B3.4 Green Finance:

In recent year Bangladesh Bank have allocated Tk.20, 034.59 million for green finance of which
Tk. 3273.69 million already used in January 2012- September 2012. From the table we can
realize that private commercial banks allocated the funds for green finance rather than the state owned commercial bank. We also realized that utilization of allocation funds in private
commercial banks is more than other state owned commercial banks. State development banks
more used its allocated funds.

Category wise contributions of bank towards green financing

SCBs

PCBs

FCBs

SD

ETP

77.68

3134.80

705.97

1.00

Projects having ETP

5758.74

122694.64

19726.55

0.00

Bio-gas Plant

28.31

219.76

0.00

0.00

Solar/Renewable

229.77

756.02

0.00

0.00

0.00

4.50

0.00

0.00

795.17

0.00

0.00

Energy Plant
Bio-fertilizer Plant
Hybrid

Hoffman 112.40

Kiln(HHK)
Others

5249.70

5.20

220.00

42.80

Total

11456.6

127610.1

20652.52

43.8

Table 02: Category wise contributions of bank towards green financing

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B3.5 Green Banking stakeholders:

Figure 01: Green Banking stakeholders

Green Banking stakeholders are customers, government, capital market, Bangladesh Bank (BB),
Non-governmental Organization, Internal financial institute, Bank Association, National council
on Climate Change, Environmental Authority and Rating Agencies. There are so many
stakeholder of green banking in Bangladesh. These are internally and externally both related on
the green banking activities.

B3.6 Banks Green activities:

9 Both side used in a paper in internal consumption
9 E-statement introduce for customer where reduce the paper consumption.
9 Using the online communication for batter service without any hassle.
9 Many bank already consumption the daylight and solar service consumption.
9 Used energy saving for green activities.
9 Video /audio conferencing in lieu of physical travel.
9 Conversion of banks vehicles into CNG and use of energy efficient electronic
equipments.
9 Efficient use of photocopy and print.
9 Easy to transfer by share electronic files, voice mail, and e-mail instead of paper memos.
9 Effective use of stationary.

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B3.7 ATM Facilities

Now on this era people are using Automatic Tailor Machine (ATM) where an electronic banking
outlet which customers to complete banking transactions and sent money from one place to
another place within moment. This types machine will created a good environment of banking
facilities. The machines will accept deposits, facilitate credit card payments and report account
information. There are many features of ATM need to be a member of the bank that operates the
machine.

Category of

Number of

Total No. of

No. of branches % branches

banks

Banks

branches

under ATM

with

facility

ATM facility

SCBs

3442

210

6.10

PCBs

30

3078

2950

95.84

FCBs

63

55

87.30

SDBs

1415

57

4.03

Total

47

7998

3272

41

Table 03: ATM Facilities

Source: Bangladesh Bank website

B3.8 Environmental Adoption

The negative impacts of climate changes have already started. Though banks contribute little to
global warming, they have to focus on adaptation and mitigation process to cope up the adverse
impacts of global warming. And green banking initiative can facilitate this process.
B3.9 Green Marketing
Green marketing means the marketing system of greenly and eco-friendly marketing and
promotion of products and service. Which is really unique system of marketing has been
implemented in Bangladesh, Such type of marketing will be provided environmental benefit and
increase the social awareness. Where the green banking has been added a new opportunity of
banking sector for creates a new world.

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Chapter Four: Recommendation and Conclusion

B4.1 Recommendations:
9 Government should be encourages the general people about green banking for great
contribution.
9 Bangladesh bank can be implemented the way of green banking activities the commercial
and non-commercial banks.
9 Bangladesh Bank should be carefully monitoring the green banking practices in
Bangladesh.
9 Bank should be aware and effective use of banking space.
9 Credit risk management and risk management can be adopted in new systematic way of
green banking.
9 Green can be applying quantitative approach for environmental issue Responsiveness of
top management in different commercial bank.
9 Should be encouraged about green the banking practices to their browsers.
9 Need to apply green banking and use environmental risk management (ERM) guideline
in efficient manner.
9 Distribute information and methodological know-how with peer groups.

B4.2 Conclusion:
In whole world face one and only problem is climate changed. Where Bangladesh is one of them
in recent year each and every sectors have been faced that problem, from the overall discussion
Bangladesh banking sector take some initiative steps for change the green banking development.
In this study have been discussing about the green banking practices and also development of
green activities. Where in Bangladesh Bank played important roles and responsibilities so as part
they created green banking policy and increased green banking activities. Green banking manly
emphasis the green financing, green mobile banking, green online banking and green
environmental campaign. Where in Bangladeshi Government should also encourage the general
people about the green banking practices? The central bank should monitor or supervise are
practicing green banking.

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Reference:

1. http://pubalibangla.
2. http://www.bangladesh-bank.org
3. http://www.ucbl.com
4. http://www.trustbank.com.bd
5. http://www.primebank.com.bd
6. http://www.dutchbanglabank.com
7. http://www.islamibankbd.com
8. http://www.ebl.com.bd
9. http://www.shahjalalbank.com.bd
10. Nath Vikas, Nayak Nitin and Goel Ankit, (2014) Green Banking Practices A Review,
Vol. 2, Issue 4
11. Islam Md. Shafiqul and Das Prahallad Chandra, (2013) Green Banking practices in
Bangladesh, Volume 8, Issue 3
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13. Jinwala Arunkumar Ashvinbhai, (2013) Green Banking in India, Vol. 1/Issue 7
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http://www.basicbanklimited.com/Green_Banking.php
15. Mohmed Aminul Islam, Green Banking: Future Important Issue for Banking Industry,
16. Bangladesh Bank (2010) Review of Corporate Social Responsibility (CSR) Initiatives in
Banks 2008 & 2009. Dhaka, Bangladesh Bank.

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