Green Finance Intelligence and FinTech Innovation: Assessing the Sustainable Performance of Indian Banks

The study conducted here was empirical in nature; it analyzed the influence of green finance and FinTech innovation together on the sustainable performance metrics in the Indian banking sector. The paper made use of k-means clustering analysis and ESG (Environmental, Social, and Governance) performance assessment over the major five Indian banks-State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis Bank, and Punjab National Bank- during the period 2021–2025, to map out whereby the dealers of sustainability in India got divided. The results indicated that the adoption of FinTech resulted in a significant increase in ESG performance (coefficient = 0.083, p < 0.05), and the banks which were advanced in the area showed better integration of environmental finance. The study also claims that among the green finance tools, the green bonds and sustainable lending platforms paired with digital innovation are the key factors that differentiate the Indian banks from the others in their ability to cope with the net-zero targets. Thus the research forms the basis on which the policy makers and practitioners can build the sustainability frameworks in the banking sector.