Corporate Governance in Banking Sector in India | Original Article

ABSTRACT:

Corporate Governance has become a ―buzz word‖ nowadays. All thanks to Liberalization and globalization that have led to the renaissance of the concept of Corporate Governance all across the globe. It is based on the dictum of accountability, transparency and quality. Banking as is different from other forms of business has commonly been treated as a matter of public interest given its overall importance to the economy both in regard to its linkages with the real sector and for providing a payments and settlement system. The constant efforts made by the Reserve Bank of India and the government to improve the state of governance in banking sector cannot be said to be nugatory but its efficiency is still surrounded by questions. This paper critically analyses the existing governance practices in the banks across the country in the light of the financial position of the banks in the last decade elaborating on the issues of governance in banks and the consequences the banks are facing on account of poor corporate governance in the banking industry. It also examines the viability of the existing legislative framework and the efficiency of the actions taken with regards to governance by the regulatory authorities.