Corporate Governance Policies in Indian commercial Banks: An Empirical Analysis

Abstract

Sound Corporate Governance Policies are important to the creation of shareholders value and maintaining the confidence of customers and investors alike. The Bank’s Corporate Governance Policies are designed to ensure the independence of the Board of Directors (BoDs) and its ability to effectively supervise management’s operation of the Bank. This paper examines the Corporate Governance Policies of Commercial banks in India which are classified into Public Sector Banks and Private Sector Banks. Private Sector banks are further classified into Old Private Sector Banks and New Private Sector Banks in the study. The Governance Policies have been assessed with the help of five parameters namely, Reasons for the written code of Corporate Governance, Availability of Corporate Governance Policies, Distribution of Related Material to concerned parties, Issues in Code of conduct and Other components of Corporate Governance. Moreover, the study empirically tests the difference in the Corporate Governance Policies between the Public Sector banks and Private Sectors banks; and, also between the Old Private Sector Banks and New Private Sector Banks in India.