"Corporate Governance: Effective Control Strategy for Banks in India w.r.t. Bank of Baroda"

Abstract

Corporate governance has become an important issue of banking sector. Corporate governance is ethical conduct in business. It is the structure through which businesses are directed and controlled. The corporate governance & ethics is particularly important for developing countries since it is central to financial and economic development. India, with the legacy of the British legal system, has one of the best corporate governance laws but poor implementation combined with socialistic policies of the pre-reform era which affected corporate governance. Corporate Governance enables the banks to maintain a high level of business ethics and to optimize the value for all its shareholders. Banks trust that proper Corporate Governance facilitates effective management and control of business. The purpose of this paper is to search the role of Corporate Governance in Banking Sector. This research paper studies the practices of corporate governance in banking sector. The methodology consists of a case study  approach of secondary sources like Bank websites, RBI reports, etc. This paper assess the existing codes of Corporate Governance (CG) in India. It analyzes the CG structures and practices in Bank of Baroda by using a case study methodology. It uses secondary data for analyzing the compliance of CG codes and the plan for sustainable development in the Indian context. In this paper the researchers have studied the role of corporate governance, an effective strategy for controlling and monitoring Corporate Governance in general and with special reference to Bank of Baroda. At the concluding part of the paper the significance of corporate governance is explained with practical examples of bank of Baroda following corporate governance in their working with the help of annual report.