An Analysis Of Indian Public And Private Sector Banks

Abstract

As economic globalization intensifies competition and creates a climate of constant change, winning and keeping customers has become all the more important. Nowadays banks have realized that cost of attracting a new customer is much more than retaining existing customers, so banks are emphasizing more upon customer satisfaction.

The financial industry has experienced numerous frauds and scandals, which has led to the necessity of corporate governance. In India, the banking industry is more coordinated and well-run than any other sector, but policymakers and banks themselves still need to work hard to enhance their governance procedures. To strengthen the governance of the banking industry, a number of legislative and regulatory reforms have been started; however, in compared to global development, the kind of reforms and their successful execution are insufficient. Principles of corporate governance are predicated on elements such as bank integrity, fairness, disclosures, responsibility, and openness. Maintaining standards and enhancing stakeholder transparency necessitates the application of corporate governance in the banking sector. An analysis of the corporate governance practices of banks in the public and private sectors is the goal of this research project. The study also determines how corporate governance affects banking organization’s performance.