International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

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Corporate Governance and Firm Performance in Indian Banking Sector

Author(s) Dr. C Yuvasubramaniyan, Mr. Aswanth M R
Country India
Abstract The Indian banking sector stands as a cornerstone of national economic growth, financial inclusion, and capital mobilization. Recent decades have witnessed waves of reform, technological integration, and regulatory evolution, reshaping governance frameworks across public and private banks alike. This paper explores the symbiotic relationship between corporate governance practices and firm performance in India’s banking sector, delving into board structure, transparency, compliance, and stakeholder engagement. It investigates how robust governance mechanisms foster trust, operational stability, and financial resilience, particularly as domestic banks navigate complexities from non-performing assets to digital transformation. A multi-pronged methodology—drawing on empirical observations, literature synthesis, and quantitative testing—reveals how board diversity, frequency of board meetings, and transparency initiatives boost not just profitability but also customer confidence and regulatory compliance. The analysis confirms that banks with independent, active, and diverse boards consistently outperform peers on key indicators such as return on assets and risk management. Blind spots persist, such as inconsistent compliance and structural inertia, especially in public sector banks. The study concludes by offering actionable recommendations for regulators, boards, and policymakers to further professionalize governance, balance stakeholder interests, and anticipate future risks, thereby ensuring the continual strengthening of the Indian banking industry's performance and global competitiveness.
Keywords Corporate Governance,Banking Sector,Financial Inclusion
Published In Volume 7, Issue 5, September-October 2025
Published On 2025-10-31
DOI https://doi.org/10.36948/ijfmr.2025.v07i05.59241

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