A Study of Green Finance and Sustainable Investing at HDFC Bank

Abstract

Green finance has emerged as a pivotal mechanism for channeling capital towards environmentally sustainable and socially responsible projects. This study investigates the green finance strategies and sustainable investing practices adopted by HDFC Bank, one of India's leading private sector banks. Using secondary data spanning from 2019– 20 to 2023–24, this paper analyzes green bond issuances, ESG portfolio performance, renewable energy financing, and their impact on financial returns. The findings reveal that HDFC Bank's ESG score improved significantly from 64.2 to 78.7, while green loan portfolios expanded by over 194% during the study period. Regression analysis confirms that ESG scores, green bond volumes, and renewable energy finance share are positively correlated with return on investment (ROI). The paper concludes with policy suggestions to strengthen green finance frameworks in India's banking sector.