The Effect of Corporate Governance on the Performance of Indian Banks


Anshuman Kumar
Yatin Nihalani


Making use of the functioning of a sample of forty Indian banks, a comprehensive set of board characteristics (board size, number of meetings held in the past year, executive overlaps, busy directors and women directors)was explored and their impacts on the performance of the bank was analysed. Regressive iteration was used to determine the relevance of these parameters on each of several performance indicators namely return on assets, return on equity, return on long-term funds, earnings per share and price/book value.The findings conclude that the board of directors plays an extremely significant role in the return fetched by the bank on long term funds, but the significance (although still valid) decreases, within the domain of this study, in other performance indicators.