Poor Governance Policy and Its Brunt on Public And Private Sector Banks

Abstract

The Indian banking sector has experienced considerable growth and changes since liberalization of economy in 1991. The current banking crisis in India is understandable. Though the banking industry is generally well regulated and supervised, the sector suffers from its own set of challenges when it comes to ethical practices, financial distress and corporate governance. Corporate governance is systematic and formalized manners of ensuring that top management represented by the board of directors do not make decision making powers occasioned by management and ownership separation to pursue personal interests at the expense ofother stakeholders. This study endeavours to cover issues such as banking frauds with a detailed analysis using secondary data (literature review and case approach) as well as primary data based upon some discussion with bank staff in Kolkataregions i.e. South Kolkata Arca. This research paper is a qualitative research towards poor governance system in the banking sector. '!he study finally proposes some recommendations to reduce future occurrence of frauds in Indian banking sector.