Poor corporate governance leads to loss of identity - the Bank of Rajasthan Ltd

Corporate governance has been gaining impetus world over due to increasing corporate failures, unethical business practices and insufficient disclosure. Corporate frauds and failures have increased in frequency, intensity and magnitude. These have also touched the highly regulated Indian banking sector. The prevailing inequality, exaltation of greed, lack of social responsibility and multiple regulatory and statutory disclosures and norms are some of the reasons responsible for increase in rate of scams. This case focuses on the significance of sound corporate governance practices in banks and the importance of complying with regulatory and statutory requirements of the banking regulators. The case of Bank of Rajasthan Ltd is an eye opener for the banking industry, about the stringent face of the regulators and the extreme actions that would follow in case banks failed to adhere to regulatory requirements and sound corporate governance practices. The repercussions are as severe as losing one's identity. This case will discuss and evaluate solutions to avoid such failures in future.