India has recently witnessed a set of banking frauds, pointing toward the possibility of loose corporate governance mechanisms in the banking sector. The present study aimed to evaluate the composition of the board of directors in terms of the corporate governance parameters to assess whether they impacted the performance of the listed Indian banks. The hypothesis for the same was formulated based on the agency and the resource dependency theory . The study made use of the 34 public as well as private sector banks listed on the Bombay Stock Exchange 500 for a period of 12 years (2010–2022). The analysis was conducted using the STAT A software’s fixed-effect panel data regression model. The results suggested that board size, percentage of women directors, and percentage of independent directors on the board of banks impacted the financial performance of these banks. The study shed light on the mechanism and ways to improve bank performance using corporate governance parameters. It makes valuable contributions to the literature on corporate governance and shall be helpful for both managers and policymakers in formulating regulatory guidelines.

1. Adams, R. B., & Mehran, H. (2012). Bank board structure and performance: Evidence for large bank holding companies. Journal of Financial Intermediation, 21(2), 243 –267. https://doi.org/10.1016/j.jfi.2011.09.002
2. Adams, R. B., Hermalin, B. E., & Weisbach, M. S. (2010). The role of boards of directors in corporate governance: A conceptual framework and survey. Journal of Economic Literature, 48(1), 58–107. https://www.jstor.org/stable/40651578
3. Agnihotri, A., & Gupta, S. (2019). Relationship of corporate governance and efficiency of selected public and private sector banks in India. Business Ethics and Leadership, 3(1), 109–117. http://doi.org/10.21272/bel.3(1).109-117.2019
4. Ahamed, N. (2015). Corporate governance: Panting to keep up with scams. Prabandhan: Indian Journal of Management, 8(11), 42–53. http://doi.org/10.17010/pijom/2015/v8i11/81253
5. Alghifari, E. S., Triharjono, S., & Juhaeni, Y. S. (2013). Effect of return on assets (ROA) against Tobin's Q: Studies in food and beverage company in Indonesia stock exchange years 2007– 2011. International Journal of Science and Research (IJSR), 2(1), 722–725. https://www.ijsr.net/get_abstract.php?paper_id=IJSRON2013372
6. Al-Manaseer, M. F., Al-Hindawi, R. M., Al-Dahiyat, M. A., & Sartawi, I. I. (2012). The impact of corporate governance on the performance of Jordanian banks. European Journal of Scientific Research, 67(3), 349–359.
7. Armstrong, C. S., Core, J. E., & Guay, W. R. (2014). Do independent directors cause improvements in firm transparency? Journal of Financial Economics, 113(3), 383 –403. https://doi.org/10.1016/j.jfineco.2014.05.009
8. Basel Committee on Banking Supervision. (2018, October 19). Instructions for Basel III monitoring. https://www.bis.org/bcbs/qis/biiiimplmoninstr_oct18.pdf
9. Berezinets, I., Ilina, Y., & Cherkasskaya, A. (2017). Board structure, board committees and corporate performance in Russia. Managerial Finance, 43(10), 1073–1092. https://doi.org/10.1108/MF-11-2015-0308
10. Bezawada, B. (2020). Corporate governance practices and bank performance: Evidence from Indian banks. Indian Journal of Finance and Banking, 4(1), 33–41. https://doi.org/10.46281/ijfb.v4i1.502
11. Bouteska, A. (2021). Correction to: Do board characteristics affect bank performance? Evidence from the Eurozone. Journal of Asset Management, 22, 240. https://doi.org/10.1057/s41260-021-00212-6
12. Bugeja, M., Matolcsy, Z., & Spiropoulos, H. (2016). The association between gender-diverse compensation committees and CEO compensation. Journal of Business Ethics, 139, 375–390. https://doi.org/10.1007/s10551-015-2660-y
13. Bukair, A. A., & Abdul Rahman, A. (2015). Bank performance and board of directors attributes to Islamic banks. International Journal of Islamic and Middle Eastern Finance and Management, 8(3), 291–309. https://doi.org/10.1108/IMEFM-10-2013-0111
14. Byrd, J., Cooperman, E. S., & Wolfe, G. A. (2010). Director tenure and the compensation of bank CEOs. Managerial Finance, 36(2), 86–102. https://doi.org/10.1108/03074351011014523
15. Carty, R., & Weiss, G. (2012). Does CEO duality affect corporate performance? Evidence from the US banking crisis. Journal of Financial Regulation and Compliance, 20(1), 26 –40. https://doi.org/10.1108/13581981211199407
16. Chowdhury, M. A., & Mohd Rasid, M. E. (2016). Determinants of performance of Islamic banks in GCC countries: Dynamic GMM approach. In, D. S. Mutum, M. M. Butt, & M. Rashid (eds.), Advances in Islamic finance, marketing, and management (pp. 49–80). Emerald Group Publishing Limited. https://doi.org/10.1108/978-1-78635-899-820161005
17. Chung, K. H., & Pruitt, S. W. (1994). A simple approximation of Tobin's q. Financial Management, 23(3), 70–74. https://www.jstor.org/stable/3665623
18. Doğan, M., Elitaş, B. L., Ağca, V., & Ögel, S. (2013). The impact of CEO duality on firm performance: Evidence from Turkey. International Journal of Business and Social Science, 4(2), 149–155.
19. Duru, A., Iyengar, R. J., & Zampelli, E. M. (2016). The dynamic relationship between CEO duality and firm performance: The moderating role of board independence. Journal of Business Research, 69(10), 4269–4277. https://doi.org/10.1016/j.jbusres.2016.04.001
20. El-Chaarani, H. (2014). The impact of corporate governance on the performance of Lebanese banks. The International Journal of Business and Finance Research, 8(5), 35–46.
21. Elyasiani, E., & Zhang, L. (2015). Bank holding company performance, risk, and “busy” board of directors. Journal of Banking & Finance, 60, 239–251. https://doi.org/10.1016/j.jbankfin.2015.08.022
22. Field, L., Lowry, M., & Mkrtchyan, A. (2013). Are busy boards detrimental? Journal of Financial Economics, 109(1), 63–82. https://doi.org/10.1016/j.jfineco.2013.02.004
23. Francis, B. B., Hasan, I., & Wu, Q. (2012). Do corporate boards matter during the current financial crisis? Review of Financial Economics, 21(2), 39–52. https://doi.org/10.1016/j.rfe.2012.03.001
24. Gafoor, C. P., Mariappan, V., & Thiyagarajan, S. (2018). Board characteristics and bank performance in India. IIMB Management Review, 30(2), 160–167. https://doi.org/10.1016/j.iimb.2018.01.007
25. Ghosh, S., & Ansari, J. (2018). Board characteristics and financial performance: Evidence from Indian cooperative banks. Journal of Co-Operative Organization and Management, 6(2), 86–93. https://doi.org/10.1016/j.jcom.2018.06.005
26. Grove, H., Patelli, L., Victoravich, L. M., & Xu, P. (2011). Corporate governance and performance in the wake of the financial crisis: Evidence from US commercial banks. Corporate Governance: An International Review, 19(5), 418–436. https://doi.org/10.1111/j.1467-8683.2011.00882.x
27. Gupta, J., & Sardana, V. (2021). Deposit insurance and banking risk in India: Empirical evidence on the role of moral hazard. MUDRA: Journal of Finance and Accounting, 8(2), 79–94. https://doi.org/10.17492/jpi.mudra.v8i2.822105
28. Gupta, L., Sardana, V., Narula, G., & Singhania, S. (2021). Does corporate social responsibility affect corporate financial performance? A myth or a reality. Business Analyst, 42(1), 71–100. https://www.srcc.edu/system/files/Article%204_0.pdf
29. Haldar, A., Shah, R., & Rao, S. V. (2015). Gender diversity in large listed Indian companies. Corporate Ownership & Control, 12(3–5), 573–580. https://doi.org/10.22495/cocv12i3c5p8
30. Hausman, J. A., & Taylor, W. E. (1981). Panel data and unobservable individual effects. Econometrica, 49(6), 1377–1398. https://doi.org/10.2307/1911406
31. Huu Nguyen, A., Thuy Doan, D., & Ha Nguyen, L. (2020). Corporate governance and agency cost: Empirical evidence from Vietnam. Journal of Risk and Financial Management, 13(5), 103. https://doi.org/10.3390/jrfm13050103
32. Isik, O. (2017). The dynamic association between CEO-duality and bank performance: The moderating role of board size. Research Journal of Business and Management, 4(4), 460–468. https://dergipark.org.tr/en/pub/rjbm/issue/33045/367474
33. Jain, S., Bagga, T., & Aggarwal, R. (2021). ICICI Bank Ltd. - Quintessence of corporate governance failure and board ineffectiveness. Prabandhan: Indian Journal of Management, 14(12), 8–18. https://doi.org/10.17010/pijom/2021/v14i12/167457
34. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
35. Kakanda, M. M., Salim, B. & Chandren, S. (2017). Corporate governance, risk management disclosure, and firm performance: A theoretical and empirical review perspective. Asian Economic and Financial Review, 7(9), 836–845. https://doi.org/10.18488/journal.aefr.2017.79.836.845
36. Kakkar, D., & Kamboj, G. (2011). Board structure and corporate performance: A causal analysis of select Indian companies. Prabandhan: Indian Journal of Management, 4(11), 44–56. https://doi.org/10.17010/pijom/2011/v4i11/62647
37. Kaur, M., & Vij, M. (2017). Board characteristics and firm performance: Evidence from banking industry in India. Asian Journal of Accounting & Governance, 8, 39–53. https://doi.org/10.17576/AJAG-2017-08-04
38. Kiranmai, J., & Mishra, R. K. (2019). Corporate governance practices in listed state -owned enterprises in India: An empirical research. Indian Journal of Corporate Governance, 12(1), 94–121. https://doi.org/10.1177%2F0974686219849760
39. Kress, J. C. (2018). Board to death: How busy directors could cause the next financial crisis. BCL Rev., 59, 877. https://heinonline.org/HOL/LandingPage?handle=hein.journals/bclr59&div=25&id=&page=
40. Kumar, N., & Singh, J. P. (2013). Effect of board size and promoter ownership on firm value: Some empirical findings from India. Corporate Governance, 13(1), 88–98. https://doi.org/10.1108/14720701311302431
41. Kumar, N., & Sudesh. (2019). Does corporate governance affect bank performance? Empirical evidence from India. Prabandhan: Indian Journal of Management, 12(3), 7–23. https://doi.org/10.17010/pijom/2019/v12i3/142337
42. Kumari, P., & Pattanayak, J. K. (2014). Earnings management and corporate governance issues in the banking and finance sector: A review of literature. Prabandhan: Indi an Journal of Management, 7(12), 22–32. https://doi.org/10.17010/pijom/2014/v7i12/59287
43. Leone, P., Gallucci, C., & Santulli, R. (2018). How does corporate governance affect bank performance? The mediating role of risk governance. International Journal of Business and Management, 13(10), 212–229. https://doi.org/10.5539/ijbm.v13n10p212
44. Li, J., & Tang, Y. (2010). CEO hubris and firm risk taking in China: The moderating role of managerial discretion. Academy of Management Journal, 53(1), 45–68. https://doi.org/10.5465/amj.2010.48036912
45. Liang, Q., Xu, P., & Jiraporn, P. (2013). Board characteristics and Chinese bank performance. Journal of Banking & Finance, 37(8), 2953–2968. https://doi.org/10.1016/j.jbankfin.2013.04.018
46. Majeed, M. K., Jun, J. C., Zia-ur-Rehman, M., Mohsin, M., & Rafiq, M. Z. (2020). The board size and board composition impact on financial performance: An evidence from the Pakistani and Chinese's listed banking sector. The Journal of Asian Finance, Economics and Business, 7(4), 81–95. https://doi.org/10.13106/jafeb.2020.vol7.no4.81
47. Malik, M., Wan, D., Ahmad, M. I., Naseem, M. A., & Rehman, R. U. (2014). Role of board size in corporate governance and firm performance applying Pareto approach, Is it cultural phenomena? The Journal of Applied Business Research, 30(5), 1395–1406.
48. Matta, R., Kochhar, K., Mohapatra, A. K., & Mohanty, D. (2022). Board characteristics and risk disclosure quality by integrated reporters: Evidence from Indian banks. Prabandhan: Indian Journal of Management, 15(5), 27–42. https://doi.org/10.17010/pijom/2022/v15i5/169579
49. Mbanyele, W. (2020). Do busy directors impede or spur bank performance and bank risks? Event study evidence from Brazil. SAGE Open, 10(2). https://doi.org/10.1177/2158244020933594
50. Montgomery, C. A., & Wernerfelt, B. (1988). Diversification, Ricardian rents, and Tobin's q. The RAND Journal of Economics, 19(4), 623–632. https://www.jstor.org/stable/2555461
51. Moreno-Gómez, J., Lafuente, E., & Vaillant, Y. (2018). Gender diversity in the board, women's leadership and business performance. Gender in Management, 33(2), 104–122. https://doi.org/10.1108/GM-05-2017-0058
52. Ofoeda, I. (2017). Corporate governance and non-bank financial institutions profitability. International Journal of Law and Management, 59(6), 854–875. https://doi.org/10.1108/IJLMA-05-2016-0052
53. Orazalin, N., & Mahmood, M. (2019). The financial crisis as a wake-up call: Corporate governance and bank performance in an emerging economy. Corporate Governance, 19(1), 80–101. https://doi.org/10.1108/CG-02-2018-0080
54. Pathan, S., & Faff, R. (2013). Does board structure in banks really affect their performance? Journal of Banking & Finance, 37(5), 1573–1589. https://doi.org/10.1016/j.jbankfin.2012.12.016
55. Patton, A., & Baker, J. C. (1987). Why won't directors rock the boat? Harvard Business Review, 65, 10–12. http://www.sciepub.com/reference/93558
56. Pfeffer, J., & Salancik, G. R. (2003). The external control of organizations: A resource dependence perspective. Stanford University Press.
57. Raithatha, M., & Haldar, A. (2021). Are internal governance mechanisms efficient? The case of a developing economy. IIMB Management Review, 33(3), 191–204. https://doi.org/10.1016/j.iimb.2021.08.004
58. Reserve Bank of India. (2021a). Notifications on corporate governance practices in banks. https://rbidocs.rbi.org.in/rdocs/notification/PDFs/24CORPORATE68CA91B159A2408DB3EBC 479471DD2B4.PDF
59. Reserve Bank of India. (2021b). Annual report 2020–21. https://rbidocs.rbi.org.in/rdocs/AnnualReport/PDFs/0RBIAR202021_F49F9833694E84C16AA D01BE48F53F6A2.PDF
60. Saleh, M. W., Latif, R. A., Bakar, F. A., & Maigoshi, Z. S. (2020). The impact of multiple directorships, board characteristics, and ownership on the performance of Palestinian listed companies. International Journal of Accounting, Auditing and Performance Evaluation, 16(1), 63–80. https://dx.doi.org/10.1504/IJAAPE.2020.106774
61. Sardana, V., & Shukla, A. (2020). Deposit insurance coverage limit: How much is enough? Evidence from India. Indian Journal of Finance and Banking, 4(4), 66–83. https://doi.org/10.46281/ijfb.v4i4.912
62. Sardana, V., & Singhania, S. (2018). Digital technology in the realm of banking: A review of literature. International Journal of Research in Finance and Management, 1(2), 28–32. https://www.allfinancejournal.com/article/view/12/1-2-8
63. Sardana, V., & Singhania, S. (2022). Fifty years of research in deposit insurance: A bibliometric analysis and review. FIIB Business Review. https://doi.org/10.1177/23197145221116455
64. Sarpal, S. (2015). Antecedents of corporate board independence in simultaneous equation framework: Evidence from India. Prabandhan: Indian Journal of Management,8(9), 35–46. https://doi.org/10.17010/pijom/2015/v8i9/77191
65. Sharma, D., & Dey, K.S. (2020). Do board attributes influence firm performance? Evidence from Indian public sector banks. The Indian Journal of Commerce, 73(3), 27–38.
66. Shukla, A., Narayanasamy, S., Ayyalusamy, K., & Pandya, S. K. (2020). Influence of independent directors on the market risks of Indian banks. Journal of Asia Business Studies, 15(1), 31–49. https://doi.org/10.1108/JABS-01-2020-0010
67. Shukla, A., Sivasankaran, N., Singh, P., Kanagaraj, A., & Chakraborty, S. (2021). Do Women directors impact the risk and return of Indian banks? IIM Kozhikode Society & Management Review, 10(1), 44–65. https://doi.org/10.1177/2277975220938013
68. Singh, A. K., Kota, H. B., Sardana, V., & Singhania, S. (2021). Does gender diversity on board promote corporate social responsibility? An empirical analysis of sustainable development goals. Australasian Accounting, Business and Finance Journal, 15(5), 22–40. http://dx.doi.org/10.14453/aabfj.v15i5.3
69. Singh, A. K., Singhania, S., & Sardana, V. (2019). Do women on boards affect firm's financial performance? Evidence from Indian IPO firms. Australasian Accounting, Business and Finance Journal, 13(2), 53–68. https://doi.org/10.14453/aabfj.v13i2.4
70. Singh, J., Singhania, S., & Aggrawal, D. (2021). Gender diversity on corporate boards: Review and future research agenda through bibliometric mapping. Corporate Governance & Sustainability Review, 5(3), 57–72. https://doi.org/10.22495/cgsrv5i3p5
71. Singh, J., Singhania, S., & Aggrawal, D. (2022). Does board gender diversity impact financial performance? Evidence from the Indian IT sector. Society and Business Review, Vol. ahead-of-print. https://doi.org/10.1108/SBR-09-2021-0164
72. Singhania, S., Singh, J., & Aggrawal, D. (2022). Board committees and financial performance: Exploring the effects of gender diversity in the emerging economy of India. International Journal of Emerging Markets, Vol. ahead-of-print. https://doi.org/10.1108/IJOEM-03-2022-0491
73. Singhania, S., Singh, R. K., Singh, A. K., & Sardana, V. (2022). Corporate governance and risk management: A bibliometric mapping for future research agenda. Indian Journal of Corporate Governance, 1–33. https://doi.org/10.1177/09746862221126351
74. Sitaraman, S., Borde, N., & Desai, P. H. (2022). Analyzing the gender gap in patents: A lesson from startups. Prabandhan: Indian Journal of Management, 15(9), 8–24. https://doi.org/10.17010/pijom/2022/v15i9/172192