Abstract
The paper aims at understanding corporate governance in India with special reference to banking sector. It is to understand some of the important issues concerning the corporate governance of banks and attempts to empirically analyze the relationship between ownership structure and banks performance in India. A sample of 15 Indian banks is taken from the universe of 78 banks from 3 categories (Nationalized, Foreign and other scheduled commercial banks) which are identified on the basis of branch size, deposit amount (mobilization) and capital and reserves & surpluses in the year 2008-09. The paper analyzes the association between ownership structure and bank's financial performance through variables such as ROA, net NPA ratio and Operating expenses. The results of panel regression analysis have shown no significant ownership effect with respect to Return on Assets. The study also confirms significant and negative association of NPA with all three types of ownership patterns.
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