CHALLENGES AND STRATEGIES OF COMMERCIAL BANKS IN SUSTAINABLE DEVELOPMENT WITH SPECIAL REFERENCE TO TRIVANDRUM DISTRICT

Abstract

This study examines the significant challenges that commercial banks in the Trivandrum district encounter in relation to sustainable development, as well as the strategic actions taken to tackle these challenges. Banks, as financial intermediaries, have a crucial role in promoting sustainable economic growth through their support of environmentally responsible projects, promotion of social inclusivity, and guaranteeing economic viability. Banks face numerous challenges when it comes to incorporating sustainable practices, such as regulatory limitations, expensive operational expenses, limited awareness, and insufficient technological infrastructure.

The results emphasise that regulatory frameworks, although necessary, can provide difficulties in meeting compliance requirements owing to their intricate and ever-changing nature. Additionally, the upfront expenses associated with adopting sustainable projects might be restrictive, especially for smaller financial institutions. The report also highlights a notable deficiency in knowledge and proficiency about sustainable finance among both bank workers and clients.

To address these difficulties, commercial banks in Trivandrum have developed several solutions. These strategies involve establishing collaborations with both governmental and non-governmental organisations to utilise financial and technical assistance, allocating resources towards advanced technologies to optimise efficiency and decrease expenses, and implementing thorough training programs to improve knowledge and proficiency in sustainable practices. In addition, banks are progressively integrating sustainability criteria into their lending and investment choices, thus encouraging environmentally and socially responsible business practices among their clients.