Corporate governance practices: A comparative study of Bank of Baroda & Yes Bank

It is a process set up for the firms based on certain systems and principles by which a company is governed. The guidelines provided ensure that the company is directed and controlled in a way so as to achieve the goals and objectives to add value to the company and also benefit the stakeholders in the long term. The high profile corporate governance failure scams like the stock market scam, the UTI scam, Ketan Parekh scam, Satyam scam, and recently Nirav Modi and Mehul Choksi scam which were severely criticized by the shareholders, called for a requirement to make corporate governance in India transparent as it greatly affects the development of the country. Poor corporate governance of banks has increasingly been acknowledged as an important cause of the recent financial crisis. Especially, the Basel Committee on Banking Regulation has already published two editions of a guideline entitled “Enhancing corporate governance for banking organizations” which easily reflects the supervisors’ awareness of and approach to the issue Still, only during the next year of the financial crisis, the issue of banks’ good corporate governance has again started to attract noticeable interest. For this purpose, this article examines the role of corporate governance in BOB&Yes Bank, which is the part of the public sector and private sector respectively. The study has conducted a case study on BOB&Yes banks to evaluation their corporate governance practices in India. The study efforts to see better corporate governance principals to better performance in both banks(BOB & Yes Bank). For this secondary data in the form of annual report has been taken from the bank's website. The Bank understands and compliments its fiduciary role and responsibility towards its shareholders and tries hard to meet their expectations. The Bank considers that best board practices, cleardisclosures and shareholder authorization are necessary for creating shareholder value. The philosophy on corporate governance is an important tool for shareholder protection and maximization of their long-term values. The Bank believes that good Corporate Governance is much more than complies with legal and regulatory requirements. The article got on a conclusion that corporate governance practices are more satisfactory in BOB as compared to Yes bank.