Corporate Governance in Indian Banking Sector: A Review of Related Literature

Abstract

Banking system is the backbone of an economy. It has a significant contribution towards the overall development of an economy. The health of an economy largely depends on the soundness of its banking system. In the liberalised and globalised world, the Indian banking sector cannot ignore the importance of corporate governance as it ensures sound business ethics and safeguards the interests of all stakeholders. Corporate governance is a wider term which defines the rules, structures, methods and processes with which a company is managed and controlled. It increases long-term shareholder value by management accountability and also enhances firm's performance. It eliminates the conflicts arising from the separation of ownership and control. This aim of the present study is to examine the extent of applicability of corporate governance practices in Indian banking sector with the help of previous studies and to suggest some new areas for research