Performance Analysis of Banks in India A Triple Bottom Line Approach

Abstract

Analyzing the performance of an organization is essential as it incites productivity and profitability. Assessing performance characterized by financial bottom line only presents a limited perspective. With the genesis of the sustainable development model in the 1980s, performance measurement and analysis have evolved from the confined financial outset of accountability to create insightful strategic amendments in retaliation to environmental concerns and evolving societal prospects. The essence is to adopt social and environmental practices within mainstream business operations without foregoing the urge to be financially prosperous. Accordingly, organizations are embracing the triple bottom line approach and it has become an important aspect of the business. Triple bottom line is a business notion that asserts the commitment of firms towards measuring and analyzing the social and environmental performance together with financial performance as opposed to an emphasis on profit generation or standard bottom line . newlineBanks primarily occupy a transitional position in the financial system between lenders and borrowers. Being a service sector industry, the banking business does not present a direct impact on the society and environment. Nevertheless, implicit influence through its financing activities raises concerns. Accordingly, the banking sector has a notable responsibility towards society and the environment which should explicitly be regarded as an intrinsic part of their business. Social and environmental activities serve as a strategic means to uphold dynamic alliances with stakeholders and eventually accomplish the goal of sustainable development. newlineIn this context, this research strives to gain a deeper understanding of the nature and extent of reporting on triple bottom line practices by banks in India. It is believed that banks that take into perspective the needs of people and the planet in decision-making outperform conventional banks. Accordingly, this research further attempts to compare the financial p