Herwadkhar, Snehal S. Dhingra, Sambhavi Goel, Sonali and Nair, Rahul <br/><br/>
Are greens healthy for banks’ balance sheets? 

 - Economic & Political Weekly   
 - 60(12), Mar 12-22, 2025: p.61-70 
<br/><br/> There is an urgent need to channel lending towards green sectors to address climate change. The relationship between green lending by banks and their asset quality and profitability is examined using a data set of 33 Indian banks from March 2015 to December 2022. The findings reveal a negative relationship between banks’ green lending share and non-performing assets ratio, while higher green lending correlates with improved profitability. Results suggest that the positive association between higher green credit and return on assets occurs when the green credit share of 14.8% is crossed. A negative relationship with the NPA ratio is evident when the green credit share surpasses 38.4%. – Reproduced <br/><br/>https://www.epw.in/journal/2025/12/special-articles/are-greens-healthy-banks-balance-sheets.html<br/>