Global climate change and energy crisis are the biggest environmental challenges we are facing today. We all are concerned that the overall environmental scenario deteriorating as a result of rapid global warming and change in the climate. Banks have a significant role to play in these game-changing developments, a role which can only be ensured through timely interventions by a committed and effective banking system. Banks’ relevance cannot be ignored, in as much as projects financed by banks are contributing to pollution through carbon and gas emission to the air and environment. On the other hand, banks should not squeeze investment or clamp down on economic activities - rather banks need to concentrate hard on sustainable finance to cope with the change in the climate or environmental conditions, as they continue to strive for better quality assets by reducing non performing loans and maintaining a sustainable inclusive growth.