Non Performing Accountability

New-generation private sector banks have raised the bar for the industry, but several of them fall short on corporate governance. Tamal Bandyopadhyay reviews their performance

Speaking on corporate governance at the National Institute of Bank Management at Pune on January 6, Reserve Bank of India (RBI) governor Bimal Jalan was critical of corporate governance and accountability in the new-generation private sector banks. The new banks, he said, were good at accounting but poor on accountability, modern in terms of technology but less risk-conscious. Less than a month later, the RBI surprised the industry by giving in-principle approval to two players to start private banks