<h1>Study Shows Green Loans Boost Financial Stability in Indian Banks; Calls for Policy Support to Promote Sustainable Lending</h1> Research from the Indian Institute of Management, Lucknow, indicates that banks with a higher proportion of green loans exhibit improved financial stability. The study, published in Finance Research Letters, highlights the strategic importance of sustainable lending in India, suggesting that non-carbon-intensive lending enhances loan portfolio quality. Despite global efforts for uniform green lending frameworks, gaps remain, particularly in developing economies like India. The research proposes a framework to identify non-carbon-intensive sectors and ranks Indian banks by sustainability. It emphasizes the need for policy interventions to promote green lending, aligning financial stability with sustainable growth and reducing default risks.