Promoting corporate governance in Indian banking sector

A good governance is the core process guided by a strategic leadership to provide values with necessary check and balances. The dramatic Enron case has highlighted how companies which were the darlings of the stock market and held up as models for vigorous and innovative growth, can ultimately collapse like a house of cards as they were based on brands & dishonesty. In India, the corporate governance movement began in 1977 with a voluntary code framed by the Confederation of Indian Industries (CII). In the next three years, almost 30 large listed companies voluntarily adopted CII code. To strengthen the corporate governance, amendments to section 217 and 292 of the Companies Act, 1956 were made applicable from December 13, 2000. In this paper we have stressed upon the corporate governance in the Indian banking sector with special reference to State bank of India and Punjab National Bank.