The Basel Committee on Banking Supervision (BCBS) reminds the importance of good corporate governance practices of financial institutions for building trust and confidence among the investors1 . Financial institutions being highly leveraged and any undue incidents can be avoided only through an effective corporate governance mechanism. Good corporate governance promotes efficiency in monitoring and supervision. Moreover, a good corporate governance practice is an important element in attracting investors and investors are willing to pay premium of up to 25% for a well governed firm (Barton et al., 2004) India being a bank based economy, banking sector in India plays a major role in the economic growth of the country. The Indian banking system is expected to be the world’s third-biggest in the next decade. Revenue of Indian banks increased from USD 11.8 billion in 2001 to USD 46.9 billion in 2010 and expected to pool $400 billion revenue by 20262 . In the beginning, like many other countries in the world, Indian banking industry was also guided by socialistic philosophy through the nationalization of major banks. This socialistic approach witnessed non -competitiveness and raised concern on the productivity and asset quality of Indian banks. Following the fiscal crisis in 1999, the Indian economy underwent series of reforms aiming at economic liberalization paving the way for the global competition. Realizing the importance of good corporate governance for attracting investors, major corporate governance reforms were started during the period. As the banking business becomes more competitive, complex and opaque, board of directors as the custodian of good corporate governance practices plays major role through effective monitoring and supervision. This complexity of banking made regulation fencing. Realizing the importance of bank board structure for the proper functioning of banking system in the economy, Indian regulators gave much importance to the board through different regulatory framework. The Reserve Bank of India (RBI) framed “fit and proper” criteria for the constitution of bank board and selection of board of directors. Moreover, market regulator, Securities Exchange Board of India (SEBI), issued guidelines on board of directors under the Clause-49 listing agreements making it mandatory for corporate governance practices for all listing companies in India.