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INTERNATIONAL JOURNAL OF ADVANCED RESEARCH IN COMMERCE, MANAGEMENT & SOCIAL SCIENCE (IJARCMSS) [ Vol. 9 | No. 2 (I) | April - June, 2026 ]

ESG and Financial Performance: A Comparative Study of Public and Private Sector Banks in India

Kanak Yadav & Dr. Monty Kanodia

Environmental, Social, and Governance (ESG) practices have become very relevant in recent years as predictors of sustainable corporate performance in the banking industry. This research paper seeks to compare and contrast the effects of ESG practices on the financial performance of both the public and private sector banks in India. It is based on a systematic literature review (SLR) methodology that is based on secondary data and is based on a PRISMA framework to select and analyse relevant studies. All the selected articles underwent a review to comprehend the association between the ESG variables and the financial performance outcomes like Return on Assets (ROA), Return on Equity (ROE), and profitability. The results indicate that the overall effect of ESG practices on financial performance is positive, although, private sector banks show better results because of effective governance, increased transparency, and strategic integration of ESG. On the other hand, the performance of the public sector banks is more socially oriented with quite average financial results. The paper highlights the significance of adopting ESG in order to attain sustainable growth and competitive edge.

Yadav, K. & Kanodia, M. (2026). ESG and Financial Performance: A Comparative Study of Public and Private Sector Banks in India. International Journal of Advanced Research in Commerce, Management & Social Science, 09(02(I)), 79–85. https://doi.org/10.62823/IJARCMSS/09.02(I).8801
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DOI:

Article DOI: 10.62823/IJARCMSS/09.02(I).8801

DOI URL: https://doi.org/10.62823/IJARCMSS/09.02(I).8801

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