Corporate Governance in Indian Banks: Have the Chickens Come Home to Roost?
Mohan Gopinath
Alliance University, Bangalore, India
Kavita Chavali
Dhofar University, Sultanate of Oman
Volume 12: 2019, pp. 69-82; ABSTRACT
This paper is set against the backdrop of fraud in the Punjab National Bank which occurred recently; it does not in any way analyze the fraud per se but rather, looks at the macro issues involved in terms of the role of corporate governance in the banking sector and, more importantly, the role of the Reserve Bank of India. It also compares the fraud which occurred at Barings Bank and draws parallels in the roles of the Bank of England and the Reserve Bank of India. The main teaching objectives of the paper are to inculcate in students (and readers of this paper) a sensitivity to the importance of companies maintaining strict corporate governance norms. The recent events in India in the ICICI Bank where the CEO had to be dismissed for misusing her powers by resorting to practices which contravened impeccable conflict of interest standards of a bank, is another example.
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