Corporate governance practices in Indian banks and financial institutions

Corporate governance is vital for better management of any organization. Financial Institutions are no exceptions and there has been increasing demand for transparency in functioning of these institutions in view of several scams. In this research paper an attempt has been made to achieve the objectives: to study the Corporate Governance practices of Indian Banks and Financial Institutions and (ii) to analyze the impact of CG practices of Indian commercial banks and Financial Institutions on their earnings of shareholders. Exploratory research design is used in this research. This study depends on Secondary data sources. The data analyzed by multiple regression reveals that Indian banks and Financial Institution's shareholders wealth has been positively influenced by corporate governance score, Board Size, Board Independence and Firm size as the R multiple correlations coefficient is 0.861, R² is 0.691 and above 50 percent. Private sector banks have been adopting better CG practices than the public sector banks and financial institutions except Punjab National Bank. Indian Banks and Financial Institutions have been using CG as a tool to gain competitive advantage and achieving the corporate excellence.