New Delhi, Feb. 21 -- A recent study by the Indian Institute of Management (IIM) Lucknow highlights the strategic benefits of expanding non-carbon-intensive lending for Indian banks.

Published in Finance Research Letters, the study reveals that banks with a higher proportion of green loans experience long-term improvements in financial stability, positioning sustainable lending as a core strength for India's banking sector.

Despite global efforts to promote green finance, Indian banks continue to lean heavily on carbon-intensive industries, primarily due to the absence of a clear taxonomy to identify and encourage green assets.

The IIM Lucknow research addresses this gap by proposing a structured framework to identify non-carbon-intens...