Corporate Governance in Banks

Abstract

Experts in the field believe that the PSBs need to resist the temptation of cutting corners when it comes to investing in in-house technology as opposed to mindless indiscriminate and injudicious outsourcing driven and motivated decisions prompted by considerations of mere cost reduction. Corporate Governance in banks is relatively a new concept in India which has emerged during last two decades. Before the advent of Narasimham Committee on Financial Sector Reforms, the banking sector in India was largely characterised by Public Sector Banking. The Public Sector Banks (PSBs) were closely regulated by the statute in the form of State Bank of India Act, Bank Nationalisation Act, Banking Regulation Act and Reserve Bank of India Act. The capital of PSBs was contributed by the government.