Corporate Governance And Its Implications In The Indian Banking Sector: An Overview

Soujanya M Chinnikatti, Christ University, Bangalore

Dr. Shilpa M. L, Christ University, Bangalore

ABSTRACT

The banking sector plays a pivotal role in a country’s economic well-being, and the strength of its banking system is intricately linked to overall economic health. Corporate governance is a cornerstone for bolstering long-term shareholder value through managerial accountability and improved firm performance. It mitigates conflicts between shareholders and managers by clearly delineating their respective interests. Given India’s current economic landscape, the significance of corporate governance cannot be overstated. It traces the historical evolution of corporate governance globally and within India, shedding light on the best practices adopted by Indian banks. It examines the proactive measures banks undertake to incorporate these practices and discusses recent developments in corporate governance within the banking sector.

Keywords: Corporate governance, shareholder, accountability, banking, ownership.