Corporate governance in india corporate management - Strategic Management -...manumelwin
In India, the concept of corporate governance is gaining importance mainly because of two reasons.
Economic Liberalization
Deregulation of industry and business
Corporate governance in india corporate management - Strategic Management -...manumelwin
In India, the concept of corporate governance is gaining importance mainly because of two reasons.
Economic Liberalization
Deregulation of industry and business
Corporate governance practice in Commercial Banks of Bangladesh A Study on S...Ariful Saimon
Premier University
INTERNSHIP REPORT
ON
Corporate governance practice in Commercial Banks of Bangladesh
A Study on Southeast Bank Ltd
PREPARED FOR
Mr.Rajib Datta
Assistant Professor
Department Of Finance
Faculty of Business Administration
Premier University
Chittagong
PREPARED BY
Md Shazzad Hossain
ID. No: 150-22080-2147
Section: A
Major: Finance
Batch: 22nd
MBA Program
Premier University
Date of Submission: 11/05/2017
Corporate governance practice in Commercial Banks of Bangladesh A Study on S...Ariful Saimon
Premier University
INTERNSHIP REPORT
ON
Corporate governance practice in Commercial Banks of Bangladesh
A Study on Southeast Bank Ltd
PREPARED FOR
Mr.Rajib Datta
Assistant Professor
Department Of Finance
Faculty of Business Administration
Premier University
Chittagong
PREPARED BY
Md Shazzad Hossain
ID. No: 150-22080-2147
Section: A
Major: Finance
Batch: 22nd
MBA Program
Premier University
Date of Submission: 11/05/2017
Report of The Committee to Review Governance of Boards of Banks in IndiaJalaj Jain
The financial position of public sector banks is fragile, partly masked by regulatory
forbearance. Forbearance delays, but does not extinguish, the recognition of this fragility.
Capital is significantly eroded with the proportion of stressed assets rising rapidly. The Report
projects, under different scenarios, the capital requirements till March 2018 in order that
provisions are prudent, there is adequate balance sheet growth to support the needs of the
economy, and capital is in line with the more demanding requirements of Basel 3.
A light explanation of Corporate Governance for those who want to have a quick understanding of the concept. This presentation was designed for a small team of mixed background individuals and enlightened them with the insight on the concept of Governance.
its thorough Corporate governance is the system by which companies are directed and controlled. Boards of directors are responsible for the governance of their companies. The shareholders’ role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is in place.
The responsibilities of the board include setting the company’s strategic aims, providing the leadership to put them into effect, supervising the management of the business and reporting to shareholders on their stewardship.
Corporate governance is therefore about what the board of a company does and how it sets the values of the company, and it is to be distinguished from the day to day operational management of the company by full-time executives.
In the UK for listed companies corporate governance it is part of the legal system as the latest UK Corporate Governance Code applies to accounting periods beginning on or after 1 January 2019 and,, applies to all companies with a premium listing of equity shares regardless of whether they are incorporated in the UK or elsewhere.
But good governance can have wider impacts to the non listed sector because it is fundamentally about improving transparency and accountability within existing systems. One of the interesting developments in the last few years has been the way in which the ‘corporate’ governance label has been used to describe governance and accountability issues beyond the corporate sector. This can be confusing and misleading as UK Corporate Governance has been built and developed to deal with the governance of listed company entities and not designed to cover all organisational types that may have different accountability structures.
Many academic studies conclude that well governed companies perform better in commercial terms.
Corporate governance issues in banking - Dr Sanjiv AgarwalD Murali ☆
Corporate governance issues in banking - Dr Sanjiv Agarwal - Article published in Business Advisor, dated August 25, 2014 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Corporate governance is "the system by which companies are
directed and controlled". It involves regulatory and market
mechanisms, and the roles and relationships between a
company’s management, its board, its shareholders and other
stakeholders, and the goals for which the corporation is
governed. In contemporary business corporations, the main
external stakeholder groups are shareholders, debt holders,
trade creditors, suppliers, customers and communities affected
by the corporation's activities. Internal stakeholders are the
board of directors, executives, and other employees.
Elevate your trade show game with our comprehensive guide on creating an interactive booth that captures attention and drives engagement! In this presentation, Blue Atlas Marketing shares practical tips and creative strategies to transform your trade show presence. Learn how to use digital displays, interactive demos, and engaging activities to attract visitors and make lasting impressions. Whether you're a trade show veteran or a newcomer, these insights will help you stand out from the crowd and maximize your event success. Dive into our slides to discover how to turn your booth into a dynamic and interactive experience!
How to Use AI to Write a High-Quality Article that Ranksminatamang0021
In the world of content creation, many AI bloggers have drifted away from their original vision, resulting in low-quality articles that search engines overlook. Don't let that happen to you! Join us to discover how to leverage AI tools effectively to craft high-quality content that not only captures your audience's attention but also ranks well on search engines.
Disclaimer: Some of the prompts mentioned here are the examples of Matt Diggity. Please use it as reference and make your own custom prompts.
Come learn how YOU can Animate and Illuminate the World with Generative AI's Explosive Power. Come sit in the driver's seat and learn to harness this great technology.
Monthly Social Media News Update May 2024Andy Lambert
TL;DR. These are the three themes that stood out to us over the course of last month.
1️⃣ Social media is becoming increasingly significant for brand discovery. Marketers are now understanding the impact of social and budgets are shifting accordingly.
2️⃣ Instagram’s new algorithm and latest guidance will help us maintain organic growth. Instagram continues to evolve, but Reels remains the most crucial tool for growth.
3️⃣ Collaboration will help us unlock growth. Who we work with will define how fast we grow. Meta continues to evolve their Creator Marketplace and now TikTok are beginning to push ‘collabs’ more too.
It's another new era of digital and marketers are faced with making big bets on their digital strategy. If you are looking at modernizing your tech stack to support your digital evolution, there are a few can't miss (often overlooked) areas that should be part of every conversation. We'll cover setting your vision, avoiding siloes, adding a democratized approach to data strategy, localization, creating critical governance requirements and more. Attendees will walk away with actions they can take into initiatives they are running today and consider for the future.
The Forgotten Secret Weapon of Digital Marketing: Email
Digital marketing is a rapidly changing, ever evolving industry--Influencers, Threads, X, AI, etc. But one of the most effective digital marketing tools is also one of the oldest: Email. Find out from two Houston-based digital experts how to maximize your results from email.
Key Takeaways:
Email has the best ROI of any digital tactic
It can be used at any stage of the customer journey
It is increasingly important as the cookie-less future gets closer and closer
What’s “In” and “Out” for ABM in 2024: Plays That Help You Grow and Ones to L...Demandbase
Delve into essential ABM ‘plays' that propel success while identifying and leaving behind tactics that no longer yield results. Led by ABM Experts, Jon Barcellos, Head of Solutions at Postal and Tom Keefe, Principal GTM Expert at Demandbase.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
The Secret to Engaging Modern Consumers: Journey Mapping and Personalization
In today's digital landscape, understanding the customer's journey and delivering personalized experiences are paramount. This masterclass delves into the art of consumer journey mapping, a powerful technique that visualizes the entire customer experience across touchpoints. Attendees will learn how to create detailed journey maps, identify pain points, and uncover opportunities for optimization. The presentation also explores personalization strategies that leverage data and technology to tailor content, products, and experiences to individual customers. From real-time personalization to predictive analytics, attendees will gain insights into cutting-edge approaches that drive engagement and loyalty.
Key Takeaways:
Current consumer landscape; Steps to mapping an effective consumer journey; Understanding the value of personalization; Integrating mapping and personalization for success; Brands that are getting It right!; Best Practices; Future Trends
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
In the digital age, businesses are inundated with tools promising to streamline operations, enhance creativity, and boost productivity. Yet, the true key to digital transformation lies not in the accumulation of tools but in strategically integrating the right AI solutions to revolutionize workflows. Join Jordache, an experienced entrepreneur, tech strategist and AI consultant, as he explores essential AI tools across three critical categories—Ideation, Creation, and Operations—that can reshape the way your business creates, operates, and scales.This talk will guide you through the practicalities of selecting and effectively using AI tools that go beyond the basics of today’s popular tools like ChatGPT, Claude, Gemini, Midjourney, or Dall-E. For each category of tools, Jordache will address three crucial questions: What is each tool? Why is each one valuable to you as a business leader? How can you start using it in your workflow? This approach will not only clarify the role of these tools but also highlight their strategic value, making it perfect for business leaders ready to make informed decisions about integrating AI into their workflows.
Key Takeaways:
>> Strategic Selection and Integration: Understand how to select AI tools that align with your business goals and how to conceptually integrate them into your workflows to enhance efficiency and innovation.
>> Understanding AI Tool Categories: Gain a deeper understanding of how AI tools can be leveraged in the areas of ideation, creation, and operation—transforming each aspect of your business.
>> Practical Starting Points: Learn how you can start using these tools in your business with practical tips on initial steps and integration ideas.
>> Future-Proofing Your Business: Discover how staying informed about and utilizing the latest AI tools and strategies can keep your business competitive in a rapidly evolving digital landscape.
Google Ads Vs Social Media Ads-A comparative analysisakashrawdot
Explore the differences, advantages, and strategies of using Google Ads vs Social Media Ads for online advertising. This presentation will provide insights into how each platform operates, their unique features, and how they can be leveraged to achieve marketing goals.
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
Vladimir Mulhem has over 20 years of experience in commercialising cutting edge creative technology across construction, marketing and retail.
Previously the founder and Tech and Innovation Director of Creative Content Works working with the likes of Next, John Lewis and JD Sport, he now helps retailers, brands and agencies solve challenges of applying the emerging technologies 3D, AR, VR and Gen AI to real-world problems.
In this webinar, Vladimir will be covering the following topics:
Applications of 3D and AR in Digital Commerce,
Benefits of 3D and AR,
Tools to create, manage and publish 3D and AR in Digital Commerce.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
2. 2
1. Recent Developments in UCB Sector- At
a glance
Year
(as at
end-
March)
No. of
UCBs
No of banks in Grade Percent
age of
Banks in
Grade III
and IV
I II III IV
2004 1,919 880 307 529 203 38
2005 1,872 807 340 497 228 39
2006 1,853 716 460 407 270 37
2007 1,813 652 598 295 268 31
2008 1,770 748 526 258 238 28
2009 1,721 845 484 219 173 23
3. 3
The total number of UCBs has decreased by 198-
1919 (2004) to 1721(2009)
As observed by Committee on Financial Sector
Assessment (CFSA) 2009 UCB Sector remains one
of the weak links in the Indian Financial Landscape.
High levels of NPAs of UCBs still continue to be the
major area of concern.
Besides it, the UCBs are facing problems of –
Crises of Credibility
Severe and unhealthy Competition
Threats to survival
4. 4
Problems of UCB Sector as a whole
UCBs exposed to vulnerability of other entities in
cooperative sector as a whole.
Problems of individual UCB
5. 5
2. One Point Agenda of TAFCUB
Identifying potentially viable and non viable
UCBs in the states and suggest revival path
for the viable banks and suggesting non-
disruptive exit route for the non- viable ones.
Need for SWOT Analysis of the bank
6. 6
This cannot be done without evaluating the
standard of Corporate Governance existing in the
bank.
For debacles of some UCBs and weaknesses,
aberrations in UCB sector, the main reason is lack
of Corporate Governance.
7. 7
3. Corporate Governance - The concept
Related to Joint Stock Companies.
Advantages of limited companies.
Disadvantages of limited companies.
8. 8
• Need for a system for ensuring the protection of
legitimate rights and long term values of
shareholders and the necessary managerial
behavioral/ good management practices.
• Here the concept of Corporate Governance was
perceived and introduced in corporate sector.
9. 9
4. Corporate Governance- Concept &
Objectives
“CORPORATE GOVERNANCE is a system by
which companies are directed and controlled”.
Protecting the long term interest and enhancing the
values of shareholders and other stakeholders
( viz.,customers, employees, creditors, bankers,
regulators and society at large)
Harmonizing rights & interest of shareholders and
stakeholders by continuous exercise of striking
balance.
10. 10
Reducing the risks normally faced by the company/
organization.
Responsibility to introduce and effectively
implement Corporate Governance is exclusively of
Board of Directors in a manner that it becomes way
of organizational life and not merely written rules or
regulations or code of ethics.
Ethics & Transparency are cardinals of Corporate
Governance.
11. 11
5. Evolution and Implementation of the
Concept at Global Level.
• Corporate Governance evolved and introduced as
remedial measures in corporate sector for forbidding the
wrongs or unethical practices.
• Appointment of Various committees at global level to
address the issue and give recommendations.
12. 12
Worldwide economic crisis and corporate debacles
have proven the inadequacy of regulatory frame
work to bring the best out of corporate
management.
Establishment of GATT and WTO regulations
also emphasized the need of good corporate
practices i.e. Corporate Governance.
13. 13
6. Corporate Governance in Banking sector.
• OECD principles 1999 also dwelt upon the issue of
Corporate Governance.
• Guidelines of Basel Committee on Banking supervision
issued to supervisory authorities in different countries.
14. 14
7(a) Corporate Governance in India
The issue of Corporate Governance has come up
mainly in the wake up economic reforms characterized
by liberalization and deregulation.
In April 1998, Confederation of Indian Industries (CII)
took issue of Corporate Governance Practices and
made certain recommendations.
SEBI committee on Corporate Governance headed by
Shri. Kumarmangalam Birla submitted its report in
February 2000.
15. 15
Clause 49 in Listing Agreement with stock
exchanges was made mandatory by SEBI to include
disclosures about Corporate Governance and its
certification by Statutory Auditors in annual report of
the company.
16. 16
7(b) Corporate Governance in Banking
Sector of India
Social control, amendment of BR Act 1949,
nationalization in 1969 and 1980.
Measures such as directed credit and subsidized
interest for needy sectors.
Post liberalization era the concept of Relationship at
arms length for public sector banks.
Implementation of prudential norms.
17. 17
Steps by Central Government to divesting its
shareholding to 33% in Public Sector Banks.
Appointment of various committees viz. Narasimhan
Committee, Nareshchandra Committee,
Narayanmurthy Committee, Dr. Ganguly Committee.
Deregulation of interest rates and greater autonomy to
banks.
Thrust of RBI on disclosure and transparency norms.
CAMELS Rating.
Risk based supervision.
18. 18
8. Corporate Governance – The Practical
Aspect
While implementing and practicing the Corporate
Governance it is necessary to examine and
introduce certain elements which stand as Hallmarks
of Corporate Governance.
Establishing and well defining strategic objectives
and set of corporate values and means to attain
them (vision and mission statement).
Endeavour to enhance the value of stake holders
and harmonizing their interests.
19. 19
Competent Board with independent disposition
assisted by its various committees and senior
management.
Documentation of definition and understanding of
the role, duties, responsibilities, accountabilities of
the Board, its Committees and Senior Management.
Appropriate supervision by senior management.
Transparency at Board level and all levels of the
management.
20. 20
Comprehensive risk management and control
mechanism.
Effective internal control and audit system.
Assurance for compliance with applicable statutes.
21. 21
9. Corporate Governance – Relevance and
Need for Cooperative Banks
Cooperative organizational structure is very unique
and innovative.
Proper understanding of cooperative culture,
cooperative ethics, values and principles is essential
to evaluated Corporate Governance in the context of
cooperatives.
22. 22
Definition of Cooperatives
A co-operative is an autonomous association of
persons united voluntarily to meet their common
economic, social and cultural needs and aspirations
through a jointly-owned and democratically
controlled enterprise.
Cooperative Values
Co-operatives are based on the values of self-
responsibility, democracy, equality and solidarity. In
the tradition of their founders, cooperative members
believe in the ethical values of honesty, openness,
social responsibility and caring for others. The
Cooperative Values are vision statement for
cooperatives.
23. 23
Cooperative Principles
The Cooperative Principles, popularly called as
Cooperative Rainbow are guidelines by which
Cooperative put their values into practice. They are
Mission Statements for Cooperatives.
1st Principle: Voluntary and open Membership
2nd Principle : Democratic Member Control
3rd Principle: Member Economic Participation
24. 24
4th Principle: Autonomy and Independence
5th Principle: Education, Training and Information to
members and their
representatives/employees
.
6th Principle : Cooperation Among Cooperatives
7th Principle : Concern For Community
Co-operatives work for the sustainable
development of their communities.
25. 25
Critical analysis of definition, values and principles
of cooperatives vis-à-vis ingredients or hallmark of
Cooperative Governance and its involvement
conspicuously and clearly indicate that –
The principles of Corporate Governance are not
alien to cooperatives but they are rather innate with
them.
The hallmark of good Corporate Governance are
very much akin to cooperative values which is a
vision statement for cooperatives while cooperative
principles constitute mission statement.
The Corporate Governance principles for Doyens
could be a management theory or concept for
directing the corporate. However for visionaries of
cooperative, the cooperative values and principles
are article of faith of cooperatives
26. 26
The UCBs are integral part of cooperatives with their
focus on lower middle class populace.
27. 27
10. Regulatory measures taken to introduce
the Corporate Governance in UCBs
Amendments in BR Act 1949, to introduce
professionalism in Cooperative Banks.
RBI guidelines prescribing Dos’ and Don’ts for
directors.
Appointment of Madhavdas Committee and its
Recommendations in 1978.
Appointment Narsimhan committee on banking
sector reform.
28. 28
High Power Committee.
Joint Parliamentary Committee 2003
CAMEL Rating Guidelines.
TAFCUB and MOUs with State or Central Government.
Risk Based Supervision.
Risk Management / Risk Management Audit.
29. 29
Measures in Cooperative Acts
Comprehensive provisions for composition of Board
giving representation to various sections of the
society.
Prohibitions on loans and advances to Directors and
other restrictive provisions to avoid malpractices.
Explicit provisions for fixing accountability of the
persons involved for financial loss caused to the
Bank, and also for negligence & false reporting on
financial state of affairs of the Bank.
30. 30
Provisions for appropriation of profit for
sustainable growth, and serving the cause of
welfare of employees, promotion of cooperative
movement and society at large.
Norms for Audit Classification.
Effective provisions for loan recoveries.
OTS for expediting recoveries.
31. 31
11.Hurdles or Lacunae In Implementing
Corporate Governance
Inadequate understanding of banking principles at
Board and senior management level, obviously
because urban co-operative banks are generally
floated by common people.
Ignorance for self-sustainable growth with specific
reference to prudential norms.
Preference to short term achievements at cost of
long term objectives.
Unhealthy competition among the Cooperative
Banks.
32. 32
Wrong notions of Board of Directors/CEO about the
growth and progress of the Bank.
Connected lending.
Corrupt practices.
Misconceptions or ignorance of the Board of
Directors about their Role, Accountability and
Responsibility.
Lack of professionalism.
Chairman or CEO centric functioning.
Non-remunerative post of elected directors.
33. 33
Undue importance to the interests of the
borrowers at the cost of welfare depositors.
Poor Risk Management and Control System.
Politicization.
No due importance to or Ineffective Internal Audit.
No statutory restriction on tenure of directorship.
Importance to electoral merits of directors rather
than their qualitative merits.
34. 34
Apathy of members/shareholders.
Grey areas in dual control.
35. 35
12. Measures to Implement and Practice
Corporate Governance
Corporate Governance should not merely be at
conceptual level. It has to be implemented for proper
functioning of the organization.
Critics state that it is highly ideal concept and
practically just not possible to implement.
Worldwide experience confirms that the Corporate
Governance can be successfully implemented if there
is sincere desire and commitment of the Board of
Directors.
36. 36
Corporate Governance can be implemented by
adopting following measures:-
A Organizational measures
(Measures to be taken within the organization).
B Statutory Measures
(Measures to be taken at statutory level).
C Sectorial Measures
(Measures to be taken within the UCB Sector).
A Organizational Measures –
A (i) Vision and mission statement and Buzzword
signifying Vision and Mission Statement.
37. 37
A (ii) Organizational Structure –
There should be well defined organizational
structure ensuring transparency in the
functioning.
A. (iii) Board of Directors and its Committees.
• Board of Directors has very vital role in
practicing Corporate Governance.
• Directors are trustees and not owners of the bank.
• Comprehensive due diligence of the directors
should be made before their nomination to the
board.
38. 38
They are expected to represent and protect their
respective section of the society and bring their
professional wisdom and expertise into functioning of
the bank.
They should be competent and independent and
should have clear understanding of their supervisory
role, their responsibilities and accountability.
They should exercise their powers collectively and not
individually.
They should not get involved themselves in day to
day affairs of the bank.
39. 39
A. (iii) Role of CEO
The role of CEO is very significant. His role is of
giving direction to the stream while remaining
himself in the stream.
A. (iv) Controlling measures
For any bank audit and risk management
functions are very vital. Hence the role of Risk
Management Committee and Audit Committee is
important.
40. 40
A. (iv) (a) Risk Management Committee
For banking business assessment and
management of various types of risks is crucial
and demands high degree of skills.
It should consist of three/four directors, one/two
of them should have professional background.
The main function of the Risk Management
Committee is to identify and assess the risks in
banking business and give necessary feed back to
the Board and Audit Committee, to take business
decisions and take necessary control measures
respectively.
41. 41
Audit Committee
Important committee for successful implementing
Corporate Governance.
Should consists of the Chairman, three/four
Directors, one or more of such directors should be
Chartered Accountant or have experience in
management, finance, accountancy, audit etc.
CEO or any other operational head should not be the
member of this committee.
42. 42
The major duties/responsibilities of the Audit
Committee:
• It should provide direction and oversee the
operations of the total audit function in the bank and
maintain quality of internal audit and inspection.
• Follow up on the statutory audit of the bank and
inspection of the Reserve Bank;
• Strengthening housekeeping.
• Fixing accountability of inspecting/auditing officials
for failure to detect serious irregularities.
43. 43
periodical review of the accounting policies/
internal control systems in the bank with a view to
ensuring greater transparency in the bank’s
accounts.
sensitizing the Board about risk prone areas.
review of Risk Management measures to mitigate
the risk.
ensure various statutory compliances applicable
to the bank.
44. 44
A. (v) Financial and Economical Measures
Assets and liability management through ALCO.
Funds and treasury management.
NPA management and implementing bank specific
OTS.
Continuous evaluation of cost benefits analysis.
Consistent and long term policy for Dividend.
To take necessary measures to ensure adequate
capital base in consonance with statutory
requirements.
45. 45
A (vi) Technological measures
Technology for better customer services,
effective MIS and overall supervision..
46. 46
Measures to build up confidence among
various stakeholders:-
Constitution and functioning of branch level advisory
committees to address local issues and get timely
feedback important for managerial decisions and
framing policies.
Sharing of important & relevant information with the
stakeholders at periodical intervals.
Establishing effective management Information
system with the support of Technology.
47. 47
b) Statutory Measures
To remove the anomaly due to problem of dual
control of RBI and State Cooperative/ Multi State co-
op Acts. This problem to great extent has been
addressed by TAFCUBs.
Amendments in BR Act 1949 state cooperative Acts
to allow mutual membership to UCBs.
Regulatory Guidelines for giving disclosure about
Corporate Governance in the annual report of the
bank on similar lines of the provisions of the
Companies Act (Clause 49 of Listing Agreement).
Premium on shares and extra dividend to augment
capital adequacy.
48. 48
C) Sectorial measures
Encouraging strategic alliances among the UCBs.
Promoting organization of members and depositors
of the UCBs .
Strengthening organization or forums of UCBs .
Sharing of technology platform
49. 49
Constant Endeavour to educate the members about
values, principles and functioning of cooperatives.
Establishing an umbrella organization to address
various important issues of UCBs.
Rating and accreditation of UCB by evaluation of
Corporate Governance practiced by the bank, by
independent professional body.
50. 50
13. Conclusion –
Realize the strength of the UCB sector. UCBs are
important and effective tool for Financial Inclusion and
powerful alchemy for social reforms and
transformation.
Practicing of Corporate Governance is in the ultimate
interest of the bank which is necessary to enjoy the
confidence of stakeholders and Regulators.
UCBs should proactively adopt Corporate Governance
and should not wait for its imposition by statute.
51. 51
Corporate Governance may not be solution on each and
every problem of the bank. It may not a “Panacea” but it
is certainly a “Pranayam” for good health of the
cooperative bank.
The Major challenge before UCBs today, is to build up
and enhance their capacity to integrate themselves with
their national and global counterparts without
sacrificing their own cultural ethos. The Corporate
Governance plays very crucial and vital role in this
endeavor.