Green Fintech and its Influence on Sustainable Financial Practices at Axis Bank

Abstract

This study, titled "Green Fintech and Its Influence on Sustainable Financial Practices at Axis Bank," evaluates the integration of digital environmental technologies, sustainable lending portfolios, and climate finance products in private commercial banking. Green Fintech leverages mobile platforms, API databases, and blockchain telemetry to support Environmental, Social, and Governance (ESG) compliance. A five-year project lifecycle (2021-2025) of Axis Bank's green digital initiatives is analyzed using standard capital budgeting parameters: Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PBP), and Benefit-Cost Ratio (BCR). Quantitative metrics indicate that ESG lending is led by renewable energy investments (42%). Digital green bond issuances on the bank's portal expanded to 1,450 Crores, and mobile carbon footprint tracker adoption reached 62% by 2025. Pass-through lending rate discounts for Electric Vehicles reached 7.2% in interest rates, driving digital green loan applications. The financial model yields a positive NPV of 284.5 Crores and an IRR of 38.6%, far exceeding the 10% discount hurdle rate. The study concludes that Green Fintech is a highly feasible, strategically vital infrastructure investment that aligns commercial banking profitability with national climate sustainability targets.