In order to promote sustainable development, green banking is a forward-thinking financial strategy that incorporates environmental, social, and governance (ESG) concepts into banking operations. The methods used by financial institutions to encourage environmentally friendly behavior, lower carbon footprints, and fund green projects are examined in this study. Green banking encompasses external funding for renewable energy, green infrastructure, and sustainable enterprises in addition to internal initiatives like energy conservation and digitization. It is essential for improving long-term financial resilience and balancing environmental responsibility with economic growth. The study looks at initiatives by Indian banks including Punjab National Bank and ICICI Bank utilizing secondary data and a descriptive research technique. These consist of energy audits, green credit cards, paperless banking, and incentives for environmentally friendly homes and cars. The analysis emphasizes how well these tactics work to advance financial inclusion and environmental sustainability. According to the study, although green banking activities have a favorable impact on inclusive growth and cleaner technology, issues including high implementation costs, low awareness, and regulatory barriers still exist. However, green banking has enormous potential to steer the financial industry toward a low-carbon, sustainable future if it has robust institutional support and is adhered to frameworks such as the UNEP Finance Initiative and the Equator Principles.