Authors - Bhagyalakshmi S Pai, Jeevanand E S, Radhika P.C, Krupa B Nair, Sreeja Radhakrishnan, Dhanalakshmi Menon Abstract - The present study attempts to empirically investigate how the customers’ awareness relates to the adoption of green banking initiatives of commercial banks in Kerala, India. The study employs data gathered from 540 customers of five banks (SBI, Canara, PNB, ICICI Bank, HDFC Bank, and Axis Bank) by using a structured questionnaire, and builds and validates the structural model for green banking adoption. Customer awareness is considered as a higher order construct which consists of Environmental Awareness and General Awareness. The analysis used descriptive statistics, reliability analysis, Confirmatory Factor Analysis (CFA), two-stage analysis of Structural Equation Modeling (SEM), and Z test and One-Way ANOVA test to determine awareness levels and differences in demographic data. The results show that there exists a high Awareness–Adoption Gap, that is, a superficial awareness of green banking, which is not yet accompanied by a conceptual understanding of it. The study also reveals that adoption of e-banking is mainly for convenience and that practice in key life-stages and occupations have a strong bearing on adoption behaviour.
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