DECLARATION

I Ms. KELUSKAR POOJA DILIP Student of K.G. JOSHI COLLEGE OF ART AND N.G. BEDEKAR COLLEGE OF COMMERECE studies in M.COM in BANKING & FINANCE (PART-I) hereby declare that I have completed the project on CORPORATE GOVERANCE IN BANKS WITH CASE STUDY in the academic year 2014-2015. The information submitted is true and original to the best of my knowledge.

PLACE: DATE:

THANE

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ACKNOWLEDGEMENT

I take immense pleasure in presenting my project CORPORATE GOVERANCE IN BANKS WITH CASE STUDY. I am deeply

conscious of my debt to Prof. S.N.CHITALE my project guide, who had played a vital role in the successful completion of this project and has been a source of inspiration and motivation to me.

I would like to thank the Principal Dr. (Mrs.) SHAKUNTALA SINGH, Coordinator Mr. D.M. MURDESHWAR, Library staff members, with whose support and guidance I have successfully completed this project.

Lastly, I would like to thanks University of Mumbai for giving the opportunity to work on this project, which has helped me to gain knowledge about this topic.

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INDEX

SR. NO.
1

NAME OF CHAPTER

PAGE NO.

INTRODUCTION TO CORPORATE GOVERANCE DEFINITION IMPORTANCE CG RATING SCALE RATING PARAMETER

2-6

CORPORATE GOVERANCE IN BANKS EVOLUTION OF CG IN BANKS IMPORTANCE NATURE AND PURPOSE OF CG OBSTACLES TO GOOD CG IN BANKING SECTOR

7-16

3 4

PRACTICES OF CG IN BANKS CORPORATE GOVERANCE IN BANK OF BARODA HDFC ICICI SBI

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17-38 39-47

COMPARISON OF CG IN PRIVATE AND PUBLIC BANK

48-54

6 7 8

ANALYSIS CONCLUSION ANNEXURE Questionnaire

55 56 57-59

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EXECUTIVE SUMMARY
Corporate governance refers to the set of systems, principles and processes by which a company is governed. They provide the guidelines as to how the company can be directed or controlled such that it can fulfill its goals and objectives in a manner that adds to the value of the company and is also beneficial for all stakeholders in the long term. Stakeholders in this case would include everyone ranging from the board of directors, management, shareholders to customers, employees and society. The management of the company hence assumes the role of a trustee for all the others. Corporate governance is based on principles such as conducting the business with all integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions, complying with all the laws of the land, accountability and responsibility towards the stakeholders and commitment to conducting business in an ethical manner. Another point which is highlighted in the SEBI report on corporate governance is the need for those in control to be able to distinguish between what are personal and corporate funds while managing a company. Fundamentally, there is a level of confidence that is associated with a company that is known to have good corporate governance. The presence of an active group of independent directors on the board contributes a great deal towards ensuring confidence in the market. Corporate governance is known to be one of the criteria that foreign institutional investors are increasingly depending on when deciding on which companies to invest in. It is also known to have a positive influence on the share price of the company. Having a clean image on the corporate governance front could
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also make it easier for companies to source capital at more reasonable costs. Unfortunately, corporate governance often becomes the centre of discussion only after the exposure of a large scam.

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