Board Structure: Issues and Compliance –A Case Study of The Indian Banking Sector

Abstract

The ongoing banking reforms highlight the importance of the board structure, which necessitates a study of its duties and processes in India. Empirical research on board structure-related issues relevant to the current legislative climate is not only important but also valuable for the successful functioning of boards in Indian banks. This article incorporates both quantitative and qualitative research. To achieve the goal, we chose 33 banks listed on the Bombay stock market, 21 of which are private sector banks and 12 of which are public sector banks operating in India. It is worth noting that banks were picked based on the availability of information. In this study, a large number of claims (11) were examined using "true" or "false." We obtained the information by visiting the websites of each firm, as well as the annual reports for 2023-24 of the banks. We concluded from our research that the involvement of the board is critical and unavoidable. In general, we can see that the banks listed on the Bombay Stock Exchange are giving due importance to the board structure while also complying with legal provisions such as board size, board independence, Chairman-CEO duality, and the number of directorships held by the directors as specified in the new Indian Companies Act 2013.