Authors: MRS. PRIYANKA SHARMA and PROF. ARVIND CHAUDHARI

Abstract

The most important factor for any economy’s growth and development is ensuring effective governance. This is because corporate governance promotes the efficient use of scarce resources. It also makes these resources flow to those sectors or entities where there are efficient production of goods and services and the return is adequate enough to satisfy the demands of stake holders. Banks play a crucial role in the flow of capital. Banks are an imperative constituent of any economy. Hence, the proper governance of banks is very crucial for growth and development of the economy and the country as a whole. The corporate governance of banks is different and unique from that of the other organizations. This is because the activities of the bank are less transparent than other organizations. Thus, it becomes difficult for shareholders and creditors to monitor the activities of the bank. The situation becomes even more difficult when a major part of the share capital is with government. This aim of the present study is to examine the extent of applicability of corporate governance practices in Indian banking sector. The study consists of both the parts viz. study of concerned literature as well as the study of perceptions from banking personnel

Keywords: Corporate Governance, Banking Sector, Shareholders, OECD, Perception

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