IDEAS home Printed from https://ideas.repec.org/a/pkp/ijomas/v14y2025i2p548-565id4225.html
   My bibliography  Save this article

Impact of sustainability on financial distress: Using profitability as moderator in the banking sector

Author

Listed:
  • Samiksha Kashyap
  • Shailesh Rastogi
  • Neena Nanda
  • Neha Parashar
  • Asmita Dani

Abstract

Stakeholders in the banking sector are now prioritizing involvement. Nowadays, a solid investment plan considers ESG factors when making investment decisions to reduce risk and produce long-term advantages for investors. The main aim of this study is to appraise the impact of ESG on financial distress by using the net interest margin as a moderator in India's banking sector. This study uses twelve years (2012–2023) of data with cross-sectional units of twenty-three Indian banks. Quantile panel data regression analysis is used to investigate the results. The findings of this research include the observation that FD is unaffected by ESG and social scores. On the other hand, FD is impacted by environmental and governance scores. NIM affects the relationship between environmental score, social score, and FD. However, it does not affect the relationship between ESG, governance score, and FD. This study provides helpful insights for banks to improve their financial health.

Suggested Citation

  • Samiksha Kashyap & Shailesh Rastogi & Neena Nanda & Neha Parashar & Asmita Dani, 2025. "Impact of sustainability on financial distress: Using profitability as moderator in the banking sector," International Journal of Management and Sustainability, Conscientia Beam, vol. 14(2), pages 548-565.
    • Handle: RePEc:pkp:ijomas:v:14:y:2025:i:2:p:548-565:id:4225
    as

    Download full text from publisher

    File URL: https://archive.conscientiabeam.com/index.php/11/article/view/4225/8573
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pkp:ijomas:v:14:y:2025:i:2:p:548-565:id:4225. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dim Michael (email available below). General contact details of provider: https://archive.conscientiabeam.com/index.php/11/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.