Department of Commerce, School of Management Sciences, Tezpur University

1. Department of Commerce
Presentation on Corporate Governance
Presented by:
Jahnu Borah
Upasa Borah
Nandit Gayan
Sudhangshu Saikia

2. Contents:
Introduction
Significance
Structure
SBI
Axis Bank
Comparative Analysis

3. Introduction Of Corporate
Governance
The relationship among stakeholders used to determine
and control strategic direction and performance of an
organization is termed corporate governance
“Corporate Governance is the system by which
companies are directed and controlled…”
(Cadbury Report, UK, 1992)

4. Significance
Corporate governance is the way a
corporation operates. In short, it is a method of governing
the company like a sovereign state, instating its own
customs, policies and laws to its employees from the
highest to the lowest levels. Corporate governance is
intended to increase the accountability of the company and
to avoid massive disasters before they occur.
Corporate governance is concerned both
with internal control of a company as well as its external
aspects such as company’s relationship with its
shareholders and other stakeholders. Further corporate
governance seeks to provide a framework that helps ensure
corporate governance in a company.

5. Structure of Corporate Governance

6. National Foundation for Corporate
Governance
With the goal of promoting better corporate governance practices in India,
the Ministry of Corporate Affairs, Government of India, on 1st October
2003 set up National Foundation for Corporate Governance (NFCG) in
partnership with Confederation of Indian Industry (CII), Institute of
Company Secretaries of India (ICSI) and Institute of Chartered
Accountants of India (ICAI). In the year 2010, stakeholders in NFCG has
been expanded with the inclusion of ICAI and the National Stock
Exchange.

7. State Bank of India
VISION
My SBI.
My Customer first.
My SBI: First in customer satisfaction
MISSION
We will be prompt, polite and proactive with our customers.
We will speak the language of young India.
We will create products and services that help our customers
achieve their goals.
We will go beyond the call of duty to make our customers feel
valued.
We will be of service even in the remotest part of our country.
We will offer excellence in services to those abroad as much as we
do to those in India.
We will imbibe state of the art technology to drive excellence.

8. State Bank of India
Share Capital of SBI
Shareholders Shareholding
Promoters: Government of India 58.60%
Banks & Insurance Companies 16.79%
FIIs/GDRs/OCBs/NRIs 12.04%
Mutual Funds & UTI 03.78%
Private Corporate Bodies 02.87%
Others 5.92%
Total 100.0%

9. Capital Structure of SBI
The Bank has authorized share capital of Rs. 5,000
crores comprising 500 Hundred equity shares of Rs.10/-
each. The issued capital of the State Bank shall, on the
appointed day, be five crores, sixty two lakhs and fifty
thousand rupees divided into five lakhs, sixty two
thousand and five hundred shares. Provided also that
the Central Government shall, at all times, hold not less
than fifty-one per cent. of the issued capital consisting of
equity shares of the State Bank. No increase in the
issued capital beyond twelve crores and fifty lakhs of
rupees shall be made under sub-section (2) of the act
without the previous sanction of the Central Government.
The State Bank may, accept the money in respect of
shares issued towards increase in the issued capital in
instalments, make calls, forfeit unpaid shares and re-
issue them, in such manner as may be prescribed.

10. Organizational Structure of SBI

11. Axis Bank
Vision 2015 and Core Values
VISION 2015:
•To be the preferred financial solutions provider excelling in customer delivery
through insight, empowered employees and smart use of technology
Core Values
•Customer Centricity
•Ethics
•Transparency
•Teamwork
•Ownership

12. Axis Bank
Share Capital
Shareholders Shareholding
Promoter Group 33.88%
Foreign
Institutional
Investors (FII)
43.18%
Individual
shareholders
06.61%
Bodies Corporate 06.03%
Mutual funds 04.47%
GDR 03.90%
Financial
institutions /
Banks
00.85%
Others 01.08%
Total 100.0%

13. Capital Structure of Axis
Bank
The Bank has authorized share capital of Rs. 850
crores comprising 850,000,000 equity shares of
Rs.10/- each. As on 31st March 2014, the Bank has
issued, subscribed and paid-up equity capital of Rs.
469.84 crores, constituting 469,844,553 equity
shares of Rs. 10/- each. The Bank’s shares are listed
on the National Stock Exchange and the Bombay
Stock Exchange. The GDRs issued by the Bank are
listed on the London Stock Exchange (LSE).

14. Organizational Structure of Axis Bank

15. Comparative Analysis
of
SBI and AXIS BANK

16. BASIS SBI AXIS BANK
DIRECTOR’s
APPOINTMENT
Minimum 6 Directors Minimum 2 Directors
BOARD ACCOUNTABILITY
& OBJECTIVITY
Chairman & Directors Chairman, MD & CEO.
INDEPENDENT BOARD
LEADERSHIP
No, as it is run by the
Central Govt.
Yes, in many cases like
borrow, etc.
OPERATIONS ABROAD The bank has 180
international offices spread
over 34 countries.
The bank has seven
international offices
SHARE HOLDING
PATTERN
50% shares are held by Govt. of
India and rest by other private
bodies
Promoter Group(UTI, LIC &
GIC) held 34% of shares,
Foreign Institutional
Investors (FII) 43.18% and
rest by public and corporate
bodies
REGULATION Under State Bank of India
Act, 1955.
Companies Act, 1956.

17. Thank You