Impact of Sustainability Reporting Practices on Financial Performance: An Empirical Study of Selected Indian Banks

Abstract

The present study investigated the impact of sustainability reporting practices on the financial performance of selected Indian banks. The Indian banking sector has been on an upward shift, aided by strong economic growth and the world's third-largest economy in purchasing power parity terms.The study analyzed data from twenty banks listed on the moneycontrol between 2017 and 2021, sourced from annual reports, the moneycontrol website, and additional secondary sources. The analysis incorporated firm-specific dependent variables, including Profit before interest depreciation and tax (PBIDT), alongside three control factors: firm size, firm age, and market capitalization. Using a fixed effects panel regression model, the study found a significant positive correlation and provide valuable insights into the relationship between sustainability reporting disclosure and financial performance.It also establishes the association between the variables of performance with details of dependent, independent and control variables and sustainability disclosures.The study also offers valuable insights for banking professionals, underscoring the importance of adopting national voluntary guidelines for sustainability disclosure practices.