ABSTRACT
Global warming has become an internationally recognized concern over the last few years. Adverse consumption and production externalities have drastically affected the world’s ecological balance. The overuse of natural resources, rapid urbanization, deforestation, water pollution, and shrinking of energy capacities have aggravated the crisis. A globalized economy does not exist in isolation. In this regard, the banking structure is instrumental. This study makes an attempt to examine the effect of selected banks’ net income on profitability using secondary data for the time frame from 2015 to 2019. The empirical findings, based on panel estimation techniques, confirm that public and private sector banks that have adopted green banking initiatives have reduced costs and expenses. Continuing to follow this strategy will reduce the financial constraints of the banking structure in the near future. The banking sector’s environmental shield will be helpful in transitioning a low carbon economy in the near future.
