[ 14 ] A STUDY ON EFFECT OF GREEN ACCOUNTING IN BANKING SECTOR

ARTICLE INFO: Date of Submission: Feb 21, 2026, Revised: Mar 02, 2026, Accepted: Mar 10 , 2026, CrossRef D.O.I : https://doi.org/10.56815/ijmrr.v5i3.2026.151-160. How To Cite: Mruthula M Nair, S. B. Yadav (2026). A Study on Effect of Green Accounting in Banking Sector.International Journal of Multidisciplinary Research & Reviews 5(3), 151-160.

Abstract

Green accounting in banking industry refers to the process of introducing the environment costs, environmental risks, and information related to sustainability into financial and managerial accounting in a systematic manner. It allows banks to make their activities, lending activities and strategic plans consistent with environmental responsibility and long term sustainability objectives. This study is inspired by the growing pressure on banks to strike the right balance between the financial performance and the environmental accountability within a rapidly changing regulatory and sustainability environment. The need to empirically know the role of green accounting in terms of sustainable banking practices and long-term organizational effectiveness is increasing. The purpose of conducting this research is to evaluate the effect of green accounting in Banking Sector. The test used in the current study in One Sample t-test using R Studios. The analysis found that Reduces operational costs, improves corporate reputation, ensures regulatory compliance, Increases investor confidence, enhances risk management, promotes green loans and financing, raises employee awareness, Lowers carbon footprint, supports better decision-making, Boosts customer loyalty, aligns with sustainability goals, increases long-term profitability, and Encourages eco-friendly innovation are significant Effect of green accounting in Banking sector.