GOVERNANCE PRACTICES AND ITS RELATIONSHIP WITH FINANCIAL PERFORMANCE OF SELECTED PRIVATE SECTOR BANKS IN INDIA: AN ECONOMETRIC ANALYSIS

Abstract

Corporate governance plays a crucial role in Indian banking sector which  strengthens the  internal control, risk management, and board supervision, thereby enhancing financial stability, investor confidence, and long-term institutional performance. This paper addresses the legal framework and relationship of corporate governance practices with financial performance of Indian banking Industries specifically five large private banks  during 2020-21 to 20224-25. The data are collected from the annual reports of the sample banks and different web sites like money control, screener etc . OLS regression has been used for analysing degree of interdependence among variables of corporate governance practices and financial performance. For the analysis of the data different statistical tools like descriptive statistics, correlation matrix, Augmented Dickey-Fuller, Phillips-Perron Unit Root Test and regression model is used by the help of E-views 14 and SPSS 26 version software. The analysis supports the fact that there is the existence link between corporate governance practices and bank performance in India. It is also observed that regular board meetings enhance the strategic decisions of Indian banking sectors relate to profitability.