Discuss recommendations of Ganguli Committee on Corproate Governance specifically applicable to Public Sector Banks.

To introduce corporate governance best practices in the banking sector, the Reserve Bank of India constituted a Consultative Group in November 2001 under the Chairmanship of Dr. A. S. Ganguly, which submitted its report in April 2002. The Ganguly Committee made some recommendations on Corporate Governance in banks. The recommendations of the Ganguly Committee on Corporate Governance specifically applicable to Public Sector Banks are as under: Information flow: In order to improve manner in which the proceedings are recorded and followed up in public sector banks, they may initiate measures to provide the following information to the board: A summary of key observations made by the directors which should be submitted in the next board meeting. A more detailed recording of the proceedings which will clearly bring out the observations, dissents, etc. by the individual directors which could be forwarded to them for their confirmation. Company Secretary: The Company Secretary has important fiduciary and Company Law responsibilities. The Company Secretary is the nodal point for the Board to get feedback on the status of compliance by the organisation in regard to provisions of the Company Law, listing agreements, SEBI regulations, shareholder grievances, etc. In view of the important role performed by the Company Secretary vis-à-vis the functioning of the Boards of the banks, as also in the context of some of the public sector banks having made public issue it may be necessary to have Company Secretary for these banks also. Banks should therefore consider appointing qualified Company Secretary as the Secretary to the Board and have a Compliance Officer (reporting to the Secretary) for ensuring compliance with various regulatory/accounting requirements.