Emotional Intelligence in Financial Leadership: Strengthening Investor Confidence in India's Banking Sector Amidst a VUCA Environment

Authors:
M. N. Aishwarya Anandavalli, S. Antony Raj

Addresses:
Faculty of Science and Humanities, SRM Institute of Science and Technology, Kattankulathur, Chennai, Tamil Nadu, India.  Department of Commerce, Faculty of Science and Humanities, SRM Institute of Science and Technology, Kattankulathur, Chennai, Tamil Nadu, India. 

Abstract:

This study examines the role of Emotional Intelligence (EI) in financial leadership and its impact on investor confidence within India’s banking sector in a VUCA (Volatile, Uncertain, Complex, and Ambiguous) environment. It aims to analyse how EI-driven leadership strategies enhance transparency, resilience, and trust in financial markets. This research adopts a mixed-methods approach, combining qualitative case study analysis of major Indian banks with a quantitative survey using the Relative Importance Index (RII). The qualitative aspect involves an in-depth thematic analysis of investor relations and leadership strategies in five major Indian banks. At the same time, the quantitative study gathers primary data through a structured Likert-scale survey. Secondary data from financial reports, investor communications, and leadership statements supplement the findings. The study identifies four key EI traits—Self-Regulation and Integrity, Empathy and Relationship Management, Adaptability and Innovation, and Resilience and Crisis Leadership—as critical factors influencing investor confidence. Transparent communication, adaptability to market changes, and proactive investor engagement significantly strengthen trust in financial institutions. The study focuses on the Indian banking sector, limiting generalizability to other financial markets. Future research can expand to global banking or other financial service domains. 

Keywords: Emotional Intelligence; Financial Leadership; Investor Confidence; VUCA World; Banking Sector; India Introduction; Leadership Strategies; Banking Sector; Financial Institutions.

Received: 27/09/2024, Revised: 20/11/2024, Accepted: 20/03/2025, Published: 09/12/2025

DOI: 10.64091/ATIML.2025.000225

AVE Trends in Intelligent Management Letters, 2025 Vol. 1 No. 4 , Pages: 214-223

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