OIDA International Journal of Sustainable Development
Open-access peer-reviewed journal
https://doi.org/10.64211/oidaijsd190421
A Study on the Impact of Shareholder Activism on ESG Performance in India’s Banking Sector
Jinu Kurian 1*, S. Shwetha Iyer 2, Mohammed Azeem Khan 3, Harsh Ahire 4, Rishabh Kinhikar 5, Daivik Jayan Mampally 6 1Faculty, Technology Management Department, SVKM’s NMIMS, Mukesh Patel School of Technology Management and Engineering, Mumbai, India.
2, 3,4, 5, 6 Technology Management Department, SVKM’s NMIMS, Mukesh Patel School of Technology Management and Engineering, Mumbai, India.
*Corresponding authour: jinu.kurian@nmims.edu
Volume 19, Issue 04, Pg. 285-298, 2026.
Abstract: Recent years witnessed shareholder activism being instrumental in shaping corporations’ sustainability adoption along with ethics and productivity improvement. The global climate change phenomenon necessitates firms to focus on sustainable business management practices which in turn helps firms to address environmental, social and governance issues. This study examines how shareholder activism influences ESG performance in Indian banks between 2020 and 2024. Using a stakeholder engagement framework, it explores how institutional investor proposals, proxy voting outcomes, and regulatory pressures impact sustainability efforts across governance, environmental, and social dimensions. Data was collected through ESG score databases, SEBI and RBI disclosures, and a qualitative review of annual and sustainability reports from major Indian banks. Analysis using panel data regression and thematic content analysis reveals that higher institutional engagement and favourable voting outcomes are associated with stronger ESG practices, particularly in governance and social responsibility. The findings offer investors, regulators, and banks strategic insights to align shareholder influence with sustainability goals in India’s evolving ESG and regulatory landscape.
Keywords: Shareholder Activism, Post Ballot Voting, ESG Performance, Institutional Investors, Governance
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