Corporate Governance in Financial Sector-With Reference To Andhra Pradesh State Financial Corporation (APSFC)

Corporate governance has its backbone a set of transparent relationships between an institutions management, its Board, shareholders, and other stake holders. In this study, the nature and importance of corporate governance has been discussed with special emphasis on the controlling practices of Banking and financial institutions in general and Andhra Pradesh State Financial Corporation (APSFC) in particular in the field of corporate governance. And, how it helps in the growth and development in banks and financial institutions as well as, the best practices regarding corporate governance in banks have been described. Corporate governance is a system by which the companies are directed and controlled. It involves regulatory and market mechanisms and the role and relationships between companies arrangements, its board its shareholders and other stake holders and the goals for which the corporation is governed. Rapid developments in the field of technology and enlarged financial sophistication have challenged the ability of traditional regulation and supervision to faster a safe and sound banking system.