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The Impact of Sustainability on the Financial Performance of Private Sector Banks in India

Dr. Meena Sharma, Dr. Jyoti Yuvraj Singh Gaur & Dr. Manisha

This study investigates the relationship among sustainability practices and the financial performance of private sector banks in India, focusing on ICICI Bank and HDFC Bank from 2011 to 2023. The research analyzes three key sustainability dimensions—economic, environmental, and social—and their influence on financial performance measures, viz.  ROA, ROE, and EPS. A descriptive and analytical approach is adopted, utilizing information extracted from published annual reports and sustainability disclosures. The findings shows that while both banks demonstrate commitment to sustainable banking, HDFC Bank exhibits higher financial performance across all measures, whereas ICICI Bank leads in sustainability disclosures. Regression analysis attempt that the economic and social dimensions significantly impact financial performance, whereas environmental initiatives have a weaker association. The study concludes that a balanced integration of sustainability strategies contributes to long-term financial stability and corporate reputation within India’s banking sector.

Sharma, M., Gaur, J., & Manisha, Dr. (2025). The Impact of Sustainability on the Financial Performance of Private Sector Banks in India. International Journal of Innovations & Research Analysis, 05(04(I)), 19–26. https://doi.org/10.62823/ijira/05.04(i).8106

DOI:

Article DOI: 10.62823/IJIRA/05.04(I).8106

DOI URL: https://doi.org/10.62823/IJIRA/05.04(I).8106


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