Impact of ESG on the dividend of the Indian banks. Used non-performing assets as moderator

This study examines the nexus between environmental indices and governance about dividends within the Indian banking sector, incorporating Non-Performing Assets (NPA) as a moderator. The investigation spans the period from 2010 to 2019 and encompasses a sample of 33 representative Indian banks. Data retrieval is executed through Prowess and the authorized websites of individual banks. Four models, comprising two bases and two interaction models, are formulated for analysis. Regression analyses underscore the noteworthy influence of both base models on dividend outcomes. The findings further indicate that elevated levels of bank NPAs disrupt the correlation between the governance index and dividend distributions. Nevertheless, the analysis indicates an absence of moderating influence by NPA on the relationship between the environmental index and dividends. Through an in-depth examination of the Indian banking sector utilizing a substantial sample, this research contributes to the existing literature by shedding light on the impact of environmental and governance policies on a company's dividend policy.