Green Banking Practices and Profitability of Commercial Banks in Bangladesh

This paper tries to identify the relationship and impact of green finance (green banking) on profitability of commercial banks in Bangladesh. In order to do that, data have been collected from secondary sources (annual reports of selected banks, Bangladesh bank and websites) of 33 commercial banks for the period from 2012 to 2019. The data which have been acquired classified, arranged to attain theobjectives. The profitability ratios, correlation and simple regression are applied to analyze data. The profitability measures are return on total assetsand return on equity. In regression analysis the green finance (green banking) has been selected as independent variable and return on total assets taken as dependent variable. The results indicate that there is a positive relationship between green finance and profitability. It is also found from regression analysis that there is a positive impact of green finance on profitability. It implies that increase in green finance will increase the return of the commercial banks in Bangladesh or vice versa. The finding will be helpful for policy making and for further research for researcher.