An empirical analysis of corporate governance and financial performance in Indian banks

In recent years, there has been an increased focus on the implementation of corporate governance practices within the banking sector. This study investigates the nexus between the financial performance of Indian banks and corporate governance variables by employing panel data regression analysis spanning from 2012 to 2021, utilizing a suitable model. The findings reveal distinct dynamics, for public sector banks, ROA is notably affected by ownership concentration and audit committee size. Conversely, in private sector banks, a more complex interplay is evident, where board composition, board committees, audit committee size, and ownership concentration all wield substantial influence over their financial performance. This study highlights the crucial role of corporate governance in shaping Indian banks’ financial outcomes.