Asset quality, CSR, and profitability nexus in Indian banks: The moderating impact of CSR

In the Indian context, the study attempts to examine the moderating impact of a bank’s asset quality on the relationship between its sustainability and profitability and the moderating impact of a bank’s sustainability on the relationship between its asset quality and profitability. Findings reveal a negative moderating impact of asset quality on the positive relationship between sustainability and profitability and a negative moderating impact of sustainability on the positive relationship between asset quality and profitability. The long-run coefficients are found to be much stronger in magnitude than their short-run counterparts even though they are consistent in terms of their signs.