"Financial Performance and Corporate Governance Mechanisms: A Comparison of Indian Public and Private Sector Banks"

Israel Odion E. Idewele PhD; Dibua; Ekene C PhD; Ikilidih; Joy N. PhD; Aliu Kafayat Arinola

doi:10.56201/ijbfr.vol.12.no3.2026.pg141.150

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"Financial Performance and Corporate Governance Mechanisms: A Comparison of Indian Public and Private Sector Banks"

Israel Odion E. Idewele PhD, Dibua, Ekene C PhD, Ikilidih, Joy N. PhD, Aliu Kafayat Arinola

Abstract

In order to guarantee accountability, transparency, and long-term success in banking organizations, corporate governance is essential the banking industry in India is distinguished by structural distinctions between public and private banks, especially with regard to ownership, governance, andoperational effectiveness. This study looks at how corporate governance practices affect certain Indian public and private sector banks' financial resuls between 2019 and 2023.Using secondary data gathered from published financial statements, regulatory reports, and governance disclosures, the study uses a quantitative and comparative research design. While Return on Assets , Return on Equity , Gross Non-Performing Assets , Net Interest Margin , and Capital Adequacy Ratio are used to measure financial performance, corporate governance variables include board independence, board size, gender diversity on the board, and CEO duality. To investigate the suggested hypotheses, statistical techniques such multiple regression models, correlation analysis, independent samples t-test, and descriptive analysis are used with SPSS. The findings show that public and private sector banks' financial performance and governance frameworks differ significantly, with private banks showing better profitability, asset quality, and governance efficacy. The findings of the regression show that while CEO duality has a detrimental impact on bank performance, board independence and gender diversity have a favorable and significant influence on financial performance.Strong corporate governance practices are essential for enhancing financial efficiency and risk management in the banking industry, especially for public sector banks, according to the study's findings. In order to improve long-term financial stability and performance, regulators, legislators, and bank management can develop governance structures with the help of the findings.

Keywords

Board independencepublic and private sector bankscorporate governancefin ancial performanceand the Indian banking industry

References

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"Financial Performance and Corporate Governance Mechanisms: A Comparison of Indian Public and Private Sector Banks"

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