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Volume 3, Issue 1

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Volume 3, Issue 1

Corporate Governance Practices of Indian Public Sector and Private Sector Banks


Jatinder Kaur and Ashish Pareek

  1. Department of Humanities & Applied Sciences T R Abhilashi Memorial Institute of Engineering & Technology, Tanda, Mandi (Himachal Pardesh)
  2. Department of Management Studies, Maharshi Dayanand Saraswati University, Ajmer, Rajasthan

Banks play a major role in providing credit to the productive sectors of the economy as well as act as facilitators of financial inclusion and foremost source of employment. Whereas, the Banking Sector Acts as catalysts in promoting the growth of economy, these also possess the capability to cause calamity to an economy. Well governed banks have the ability to cope up with risk associated with them and benefit to the economy. The present study is an attempt to investigate the Corporate Governance practices being adopted by the Indian Public Sector Banks and Private Sector Banks. For this purpose, two Public Sector Banks and Private Sector Banks have been selected taking into account the top banks in the BSE 100 index ranked on the basis of market capitalization. In order to study the quality of Corporate Governance practices of the banks, an assessment tool – Corporate Governance Disclosure Index (CGDI) has been developed. The data has been collected from the annual reports of the banks from the financial year 2002 to 2014. Further, to investigate the difference in both the sector banks, student’s t-test has been applied. The findings of the study reveal that both the sector banks have significant difference with respect to Board related parameters, Remuneration Committee sub-index and Non- Mandatory sub-index.


Corporate Governance, Corporate Governance Disclosure Index

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