Banking sector is an important source of finance in any country especially in developing countries like India. Failure of the banking system or any bank adversely affects the whole economy of any country. Since banks are very important for proper functioning for any economy, therefore, their governance should be strong. This paper studied corporate governance in private sector banks and public sector banks in India. In this study, we also discussed how the banking sector is different from the nonfinancial firms and they have different corporate governance need. This study found that the banking sector is quite different from nonfinancial firms. As compare to nonfinancial firms banks are more levered, opaque, complex and heavily regulated. The banking sector also has distinct stakeholder’s group, more information asymmetry, and more susceptibility to take the risk. Further ownership structure, board structure, and board functioning are divergent in private sector banks and public sector banks in India.

KEYWORDS: corporate governance, private sector banks, public sector banks, RBI and government of India.