Corporate Governace Practices of Indian Banks: A Comparative Study of Public and Private Sector Banks
Posted: 15 Dec 2013
Date Written: December 15, 2013
Abstract
The present study tries to compare the corporate governance disclosure levels of private and public sector banks in Indian context. Using the Corporate Governance reports for a sample of Indian Banks listed on BSE BANKEX index, we review the Corporate Governance practices of Indian Banks on various important governance parameters like (i) Board Independence, (ii) Board Meetings, (iii) Executive compensation, (iv) Shareholders grievance committee, and (v) Disclosures which include Code of conduct, CEO/CFO Certification, Whistle Blower Policy, Penalty, Compliance officer information, etc for the year 2013. We then compare the Corporate Governance practices of Public and Private sector banks using the univariate parametric t-test, non-parametric Mann Whitney u test for comparing means of different parameters. The results of the study will provide insights about the differences in the quality of corporate governance practices adopted by private and public sector banks and will not only contribute to the current debate on CG practices of Public and Private Banks but also to the broader literature attempting to measure Corporate Governance.
Keywords: Banking, Corporate Governance, Private sector, Public Sector
JEL Classification: G3, G39
Suggested Citation: Suggested Citation