A COMPARATIVE ANALYSIS OF CORPORATE GOVERNANCE PRACTICES BY PUBLIC AND PRIVATE SECTOR BANKS OF INDIA
In banking parlance, Corporate Governance refers to conducting the affairs of a banking organisation in a manner that gives a fair deal to all the stakeholders i.e. shareholders, employee’s regulatory authority, bank customers and society at large. The distinctive features of the banking sector demands extensive attention on the quality of governance systems. Looking to the importance of corporate governance, SEBI has mandated corporate governance reporting practices for all the Indian listed companies vide CLAUSE 49. “Most of the studies on effectiveness of corporate governance practices excluded banking sectors from their samples. As a result, there is very little awareness about the effectiveness of banking sector governance practices.” (Adams and Mehran, 2012, p. 243). This research aims at studying the corporate governance reporting practices by Private sector banks and Public sector banks in India and to explore whether there is any significant difference in Corporate Governance Reporting practices amongst the two. The sample for the study comprises of Public and Private sector banks which are listed on BSE Sensex and NSE Nifty Index as on 31st April, 2012-2013. The study is based on secondary source of data which were collected from bank’s annual report giving a separate chapter on corporate governance. The findings of the study are analysed using a content analysis.