A Comparative Study of Corporate Governance Practices of Selected Public and Private Sector Commercial Banks in India

Corporate governance has become a common topic about which every company speaks a lot and interest in corporate Governance is growing at an exponential rate. Now a day's most management schools teach it as a subject. At the same time it is imperative to analyze whether corporate governance has really become a vital component of a successful business.Banking sector faces unique corporate governance challenges due to myriad reasons like bank ownership structures lack transparency, there are insufficient checks and balances on inappropriate activities, influences of insiders or controlling shareholders. Despite the 'corporate governance revolution', there exist no universal benchmark for the effective level of disclosure and transparency. Here lies the need to study the corporate governance practices of Indian banks, differentiation in functioning, change in attitude in implementing corporate governance and the problems and difficulties faced by them in adopting the corporate governance procedures. This paper is based on empirical research conducted on corporate governance in the Indian banking sector. A comparative analysis of the disclosure practices of ten banks have been made for a period of five years and the findings are presented