green banking in bangladesh
TRANSCRIPT
Welcome
Green Banking in Bangladesh
MBA ProgramFaculty of Business Studies
University of Dhaka
Group Details
Stellar
Name of Members ID No.
Promit Debnath 18103
Bikash Chandra Paul 18115
Md. Kaikobad Hossain 18120
Anjan Kumar Das 18124
Pobittro Saha 18133
Green Banking
Banking practices that foster environmentally responsible financing and environmentally
sustainable internal operations.
Green Banking Approach
Green transformation of all internal operations
Environmentally responsible financing
Green Banking Motivation
Environmental Concern
Brand Image Development
Stakeholders’Pressure
Green Banking Guideline
Bangladesh BankFebruary 27, 2011
Phase 1
1. Policy Formulation and Governance2. Incorporation of Environmental Risk3. Initiating In-house Environmental Management4. Introducing Green Financing5. Creation of Climate Risk Fund6. Introducing Green Marketing7. Online Banking8. Supporting Employee Training, Consumer Awareness
And Green Event9. Disclosure and Reporting of Green Banking Activities
Phase 1 Graph
CIty Ban
k Lim
ited
AB Bank
Easter
n Bank L
imite
d
AL Araf
ah Isl
ami B
ank
Prime B
ank
Dhaka Ban
k
NCC Bank
Socia
l Islam
i Ban
k Ltd.
Dutch Ban
gla Ban
k Ltd.
Standard
Bank
One Ban
k
Bank A
sia
Mercan
tile Ban
k
EXIM
Bank
Premier
Bank
Trust
Bank
FIrst
Security
Islam
i Ban
k
Mutual Truat
Bank
Shah
ajalal
Islam
i Ban
k
Pubali Ban
k
IFIC Ban
k
National
Bank L
imite
d
United Commerc
ial Ban
k
ICB Islam
i Ban
king
Jamuna B
ank
Southea
st Ban
k
Rupali Ban
k
Uttara Ban
k
Brac Ban
k
Islami B
ank B
angla
desh Lt
d0
1
2
3
4
5
6
7
8
9
Phase 2
1. Sector Specific Environmental Policies2. Green Strategic Planning3. Setting Up Green Branches4. Improved In-house Environment Management5. Formulation of Bank Specific Environmental Risk
Management Plan and Guidelines6. Rigorous Programs to Educate Clients7. Disclosure And Reporting of Green Banking
Activities
Phase 2 Graph
CIty Ban
k Limite
d
AB Bank
Eastern
Bank Lim
ited
AL Arafah
Islam
i Ban
k
Prime B
ank
Dhaka B
ank
NCC Bank
Socia
l Islam
i Ban
k Ltd.
Dutch Ban
gla Ban
k Ltd.
Standa
rd Bank
One Ban
k
Bank A
sia
Mercan
tile Ban
k
EXIM Ban
k
Premier
Bank
Trust B
ank
FIrst S
ecurity
Islam
i Ban
k
Mutual
Truat B
ank
Shah
ajalal
Islam
i Ban
k
Puba
li Ban
k
IFIC Ban
k
Nationa
l Ban
k Lim
ited
United C
ommercial
Bank
ICB Isl
ami B
anking
Jamun
a Ban
k
Southeas
t Ban
k
Rupali B
ank
Uttara
Bank
Brac Ban
k
Islam
i Ban
k Ban
glade
sh Ltd0
1
2
3
4
5
6
7
Phase 3
1. Designing and Introducing Innovative Products2. Reporting in Standard Format with External
Verification
Phase 3 Graph
CIty Ban
k Limite
d
AB Bank
Eastern
Bank L
imite
d
AL Arafah
Islam
i Ban
k
Prime B
ank
Dhaka B
ank
NCC Bank
Socia
l Islam
i Ban
k Ltd.
Dutch B
angla
Bank L
td.
Standa
rd Bank
One Ban
k
Bank A
sia
Mercan
tile Ban
k
EXIM Ban
k
Premier
Bank
Trust Ban
k
FIrst S
ecurity
Islam
i Ban
k
Mutual
Truat Ban
k
Shah
ajalal
Islam
i Ban
k
Puba
li Ban
k
IFIC Ban
k
Nationa
l Ban
k Lim
ited
United C
ommercial
Bank
ICB Isl
ami B
ankin
g
Jamun
a Ban
k
South
east B
ank
Rupali B
ank
Uttara
Bank
Brac Ban
k
Islam
i Ban
k Ban
glade
sh Ltd0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
Summary of Phases
Brac Ban
k
CIty Ban
k Limite
d
AB Bank
Prime B
ank
NCC Bank
Dutch B
angla
Bank L
td.
EXIM Ban
k
Islam
i Ban
k Ban
glade
sh Ltd
Dhaka B
ank
Bank A
sia
Mercan
tile Ban
k
IFIC Ban
k
Jamun
a Ban
k
Standa
rd Bank
Trust Ban
k
Mutual
Truat Ban
k
United C
ommercial
Bank
AL Arafah
Islam
i Ban
k
Socia
l Islam
i Ban
k Ltd.
Nationa
l Ban
k Lim
ited
South
east B
ank
Eastern
Bank Lim
ited
One Ban
k
Premier
Bank
Uttara
Bank
Shah
ajalal
Islam
i Ban
k
ICB Isl
ami B
anking
Rupali B
ank
FIrst S
ecurity
Islam
i Ban
k
Pubali
Bank
0
2
4
6
8
10
12
14
16
18
Methodology
1. Observation2. Regression
Findings
According to our observation, it is found that 17 banks fall in “More Green Banking” category and 13 banks fall in ‘Less Green Banking’ category.
Only 1 bank has completed the all 3 phases.
Findings
From EPS Observation:
2010 2011 2012 2013 2014 20150.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
Average EPS (More)
Average EPS (Less)
(EPS)
(Year)
Findings
Form Stock Price Observation:
2011 2012 2013 2014 2015 20160
5
10
15
20
25
30
35
Average Stock Price (More)
Average Stock Price (Less)
(Stock Price)
(Year)
Findings
• Only 3 banks, 10% of listed banks, have separate portal of ‘Green Banking’.
• 16 banks, 53% of the listed banks, have reported ‘Green Banking’ activities in a separate part in their annual reports.
• 27 banks, 90% of the listed banks, have reported about ‘Green Banking’ in their annual reports. It includes both separate and non-separate reports about ‘Green Banking’.
• We have found that the maximum amount of ‘Green Banking’ report is 11 pages and minimum amount of ‘Green Banking’ report is half page.
• We have also found that 17 banks, 57% of the listed banks, have disclosed the amount of investment in ‘Green Banking’ activities.
Findings
Separate GB Web Portal
Sepa-rate GB Web Portal10%
No Separat
e GB Web
Portal90%
Findings
Separate GB Report
Separate Report53%
No Sepa-rate
Report47%
Findings
Green Banking in Annual Report
90%
10%Report in Annual Report No Report in Annual Report
Findings
Green Banking Amount Disclosure
Amount Disclosure
57%
No Amount Disclosure
43%
Findings
• From first regression analysis on Net Profit, the result is:
• From second regression analysis on EPS, the result is:
• From third regression analysis on Stock Price, the result is:
Limitations
The study does not cover the unlisted commercial banks.
The study does not cover the financial information of 2016 as the financial statements of 2016 are yet to be published.
The study does not cover all the measures of profitability such as ROE, ROA etc.
