Social and financial performance of Indian banking sector

Abstract

Banking sector of any country plays dual role, in achieving the social goals on the one hand and improving the financial strength on the other. The study analyses the role of Indian banking sector in discharging social obligations as per recent guidelines and impact of the same in improving financial returns. Significant negative relationship is found between the social and financial performance of Indian banking sector. Although social responsibility is taken as an important tool for improving the financial performance of corporate sector but Indian banking sector is not able to get this benefit may be due to lack of awareness among people regarding the social initiatives undertaken by banks or the cost involved in undertaking these social initiatives is much more than the benefit Indian banks are able to get in the form of financial returns. The study gives an idea about how Indian banking sector is discharging social obligations but this information does not reach the society at large to reap the benefits of financial returns.