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Abstract

Purpose- This study examines the association between green banking practices and the Bank’s ecological performance, emphasizing the moderating role of Green Capacity development. Design/Methodology/Approach- The research employs a quantitative method containing quantitative data. A survey of banking institutions was conducted to assess the extent of their ecological practices and its effect on the Bank's environmental performance. The data was collected through a structured questionnaire. The Smart PLS was employed for Statistical analysis to establish the relationship between bank ecological practices and its ecological outcomes. Findings- The study finds a positive relationship between green banking practices and their environmental outcome. Banks' operation-related practices, such as paperless transactions and energy-efficient infrastructure, significantly reduce their carbon footprint and contribute to ecological sustainability. The interaction of Bank operation-related practices with green capacity development significantly impacts Bank environmental performance. However, Bank policy related practices alone do not affect environmental sustainability, but their interaction with green capacity development significantly impacts the Bank's ecological performance. Practical Implications- The findings suggest that Green capacity development is crucial in enhancing the Bank's ecological performance. Alone, Bank policy-related practices are insufficient to improve their ecological performance. Originality/Value- This paper contribute to the expanding corpus of research on sustainable banking by providing empirical evidence on the link between green banking practices and Bank’s ecological performance with the moderating role of Green Capacity development.