The growing concern about environmental degradation and climate change has prompted financial institutions globally to integrate sustainability into their operations. This paper discusses the sustainable banking models adopted globally and highlights some of the key lessons that can be used to reinforce Indian banks’ green and responsible banking frameworks. The research looks at how major international banks from European Union countries, the United States, and emerging economies have incorporated ESG principles, green lending practices, and sustainability reporting into their business model strategies. Successful initiatives such as carbon-neutral operations, green bonds, and digital eco-friendly services, which pave the way for greater financial inclusions with minimal environmental impact, are also discussed here. This paper adopts a comparative and an analytical approach based on secondary data to review the sustainability banking models presented above with their correspondence to the UN SDGs and world standards such as the Equator Principles. The outcomes indicate that although Indian banks have initiated green practice, there is still a difference between their actual implementation and disclosure and global benchmarking. The paper concludes with recommendations for Indian banks to adopt comprehensive sustainability frameworks, enhance green financing, and foster a culture of environmental accountability within the banking ecosystem.