Department of Commerce

Presentation on Corporate Governance

Presented by:

Jahnu Borah

Upasa Borah

Nandit Gayan

Sudhangshu Saikia

Contents:

Introduction

Significance

Structure

SBI

Axis Bank

Comparative Analysis

Introduction Of Corporate

Governance

The relationship among stakeholders used to determine

and control strategic direction and performance of an

organization is termed corporate governance

“Corporate Governance is the system by which

companies are directed and controlled…”

(Cadbury Report, UK, 1992)

Significance

Corporate governance is the way a corporation operates. In short, it is a method of governing the company like a sovereign state, instating its own customs, policies and laws to its employees from the highest to the lowest levels. Corporate governance is intended to increase the accountability of the company and to avoid massive disasters before they occur.

Corporate governance is concerned both with internal control of a company as well as its external aspects such as company’s relationship with its shareholders and other stakeholders. Further corporate governance seeks to provide a framework that helps ensure corporate governance in a company.

Structure of Corporate Governance

National Foundation for Corporate

Governance

With the goal of promoting better corporate governance practices in India,

the Ministry of Corporate Affairs, Government of India, on 1st October

2003 set up National Foundation for Corporate Governance (NFCG) in

partnership with Confederation of Indian Industry (CII), Institute of

Company Secretaries of India (ICSI) and Institute of Chartered

Accountants of India (ICAI). In the year 2010, stakeholders in NFCG has

been expanded with the inclusion of ICAI and the National Stock

Exchange.

State Bank of India

VISIONMy SBI.

My Customer first.

My SBI: First in customer satisfaction

MISSIONWe will be prompt, polite and proactive with our customers.

We will speak the language of young India.

We will create products and services that help our customers

achieve their goals.

We will go beyond the call of duty to make our customers feel

valued.

We will be of service even in the remotest part of our country.

We will offer excellence in services to those abroad as much as we

do to those in India.

We will imbibe state of the art technology to drive excellence.

State Bank of India

Share Capital of SBI

Shareholders Shareholding

Promoters: Government of India 58.60%

Banks & Insurance Companies 16.79%

FIIs/GDRs/OCBs/NRIs 12.04%

Mutual Funds & UTI 03.78%

Private Corporate Bodies 02.87%

Others 5.92%

Total 100.0%

Capital Structure of SBI

The Bank has authorized share capital of Rs. 5,000 crores comprising 500 Hundred equity shares of Rs.10/-each. The issued capital of the State Bank shall, on the appointed day, be five crores, sixty two lakhs and fifty thousand rupees divided into five lakhs, sixty two thousand and five hundred shares. Provided also that the Central Government shall, at all times, hold not less than fifty-one per cent. of the issued capital consisting of equity shares of the State Bank. No increase in the issued capital beyond twelve crores and fifty lakhs of rupees shall be made under sub-section (2) of the act without the previous sanction of the Central Government. The State Bank may, accept the money in respect of shares issued towards increase in the issued capital in instalments, make calls, forfeit unpaid shares and re-issue them, in such manner as may be prescribed.

Organizational Structure of SBI

Axis Bank

Vision 2015 and Core Values

VISION 2015:

•To be the preferred financial solutions provider excelling in customer delivery through insight, empowered employees and smart use of technology

Core Values

•Customer Centricity•Ethics•Transparency•Teamwork•Ownership

Axis Bank

Share Capital

Shareholders Shareholding

Promoter Group 33.88%

Foreign

Institutional

Investors (FII)

43.18%

Individual

shareholders06.61%

Bodies Corporate 06.03%

Mutual funds 04.47%

GDR 03.90%

Financial

institutions /

Banks

00.85%

Others 01.08%

Total 100.0%

Capital Structure of Axis

Bank

The Bank has authorized share capital of Rs. 850

crores comprising 850,000,000 equity shares of

Rs.10/- each. As on 31st March 2014, the Bank has

issued, subscribed and paid-up equity capital of Rs.

469.84 crores, constituting 469,844,553 equity

shares of Rs. 10/- each. The Bank’s shares are listed

on the National Stock Exchange and the Bombay

Stock Exchange. The GDRs issued by the Bank are

listed on the London Stock Exchange (LSE).

Organizational Structure of Axis Bank

Comparative Analysis

of

SBI and AXIS BANK

BASIS SBI AXIS BANK

DIRECTOR’s

APPOINTMENT

Minimum 6 Directors Minimum 2 Directors

BOARD ACCOUNTABILITY

& OBJECTIVITY

Chairman & Directors Chairman, MD & CEO.

INDEPENDENT BOARD

LEADERSHIP

No, as it is run by the

Central Govt.

Yes, in many cases like

borrow, etc.

OPERATIONS ABROAD The bank has 180

international offices spread

over 34 countries.

The bank has seven

international offices

SHARE HOLDING

PATTERN

50% shares are held by Govt. of

India and rest by other private

bodies

Promoter Group(UTI, LIC &

GIC) held 34% of shares,

Foreign Institutional

Investors (FII) 43.18% and

rest by public and corporate

bodies

REGULATION Under State Bank of India

Act, 1955.

Companies Act, 1956.

Thank You