Corporate governance in Indian banks (with reference to bank of Baroda and HDFC Bank Limited) Gangadhar Rayudu*, Dr. Gopal P. Venu**, Dr. Kumar P. Vijay*** *LLM, MBA, (PHD) Research Scholar, Jawaharlal Nehru Technological University, Kakinada, East Godavari District, Andhra Pradesh, India **MBA, PHD Professor, VIT Business School, VIT University, Vellore, Tamil Nadu, India ***M.COM, PHD Director, School of Management Studies, Jawaharlal Nehru Technological University Kakinada, East Godavari District, Andhra Pradesh, India Online published on 25 June, 2015. Abstract Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. An important theme of corporate governance is the nature and extent of accountability of particular individuals in the organization, and mechanisms that try to reduce or eliminate the principal-agent problem. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. In contemporary business corporations, the main external stakeholder groups are shareholders, debt holders, trade creditors, suppliers, customers and communities affected by the corporation's activities. Internal stakeholders are the board of directors,
executives, and other employees. A related but separate thread of discussions focuses on the impact of a corporate governance system on economic efficiency, with a strong emphasis on shareholders' welfare; this aspect is particularly present in contemporary public debates and developments in regulatory policy (see regulation and policy regulation). There has been renewed interest in the corporate governance practices of modern corporations since 2001, particularly due to the high-profile collapses of a number of large corporations, most of which involved accounting fraud. Corporate scandals of various forms have maintained public and political interest in the regulation of corporate governance. This paper examines the issue of corporate governance in the Indian banking system. Using data on banking systems for the period 1996–2003, the findings reveal that CEOs of poorly performing banks are likely to face higher turnover than CEOs of well performing ones. Top Keywords Corporate regulations, business organisations, rules and processes, stakeholders. Top |