Corporate Governance Practices and their Impact on Financial Strategies in Indian Banking: A Comparative Study among State Bank of India, Indian Overseas Bank and HDFC.

Abstract

This study investigates the nexus between corporate governance (CG) mechanisms and financial strategy formulation within the Indian banking sector. Using a comparative framework involving State Bank of India (SBI), Indian Overseas Bank (IOB), and HDFC Bank, the research analyzes how board composition, audit independence, and regulatory compliance influence key financial metrics. The study utilizes secondary data from 2021 to 2025. Statistical tools, including Pearson Correlation and Multiple Regression Analysis, are employed to test the hypothesis that robust governance leads to superior capital adequacy and asset quality. Findings suggest that while HDFC Bank leads in operational efficiency due to private-sector agility, SBI demonstrates high resilience through "Governance 2.0" reforms. IOB shows significant recovery patterns linked to improved board oversight.