Purpose: This paper examined the influence of board diversity and corporate governance practices on the Environmental, Social, and Governance (ESG) performance of major Indian banks from 2011 to 2024. The primary objective was to assess how structural attributes—such as board size, independence, and gender diversity—and active CSR/ESG engagement contributed to sustainability outcomes.

Design/ Methodology/ Approach: Utilizing a longitudinal research design, the study analyzed secondary data collected from annual corporate reports, SEBI disclosures, and ESG ratings, applying trend analysis and multiple regression models to identify key determinants of ESG performance.

Findings: The findings revealed significant variation among banks, with private sector banks consistently outperforming public banks in board diversity and ESG scores. Increased representation of women directors and higher frequency of CSR/ESG committee meetings emerged as significant predictors of improved ESG scores. Structural features like larger boards and greater independent director ratios had a modest impact. The results underscored that substantive governance actions and proactive engagement, rather than mere structural adjustments, primarily drove ESG improvements.

Practical Implications: Practically, these insights suggest that banks should enhance active governance practices and foster inclusive boards to achieve sustainable growth.

Originality/ Value: The study contributes original evidence to the literature by highlighting the critical role of gender diversity and CSR activities specific to the Indian banking context, emphasizing that diversity should translate into strategic governance and stakeholder value. These findings inform policy frameworks and encourage banks to adopt comprehensive, participatory governance models to unlock long-term sustainability benefits.