Today concept of Corporate Governance needs a new aspect due for globalization and liberalization. Corporate Governance is a strength, a set of visible interactions between an institution’s management its board, share holders and stakeholders. The elementary objective of Corporate Governance is to develop the long-term shareholder with protecting the interests of other stake holders maximizing long term shareholder value in a legal and ethical manner, safeguarding justice, courtesy, and dignity in all businesses in and outward with partners, competitors, employees, investors, customers, the government, and the society. The Indian Banking System is among the well performers in the world. In deregulated economic environment and integration of the country at these days, the banking sector in India cannot ignore the importance of corporate governance. The philosophy of corporate governance in banks is the interest of perfect business ethics and strong proficiency, that supports the advantages of all stake holders and the society. The objective of this paper is to value the corporate governance practice in banking sector and how they adhere to the corporate government practices. It more specifies the role and relationship of corporate governance in Indian Banking sector which needs to ensure good corporate governance to achieve excellence, transparency, maximization shareholders value and wealth.

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Keywords: SBI & RBI, Public and Private Sectors, Corporate Governance, Banking Sector.