APPLICATION AND EFFECTIVENESS OF FINANCIAL CONTROL TECHNIQUES IN INDIAN BANKS- AN EMPIRICAL EVIDENCE.

A sound system of financial control contributes to safeguarding the stakeholders’ investment and the institutions assets. Further financial control also contribute to the safeguarding of assets, including the prevention and detection of fraud. Half tied financial control is a virus affecting banking sector. It affects liquidity and profitability, in addition posing threat on quality of asset and survival of banks. The intent of the research paper is to analyse the application of financial control techniques and to check their effectiveness with regard to their application in Indian banking sector. The study is pursued on the data collected through questionnaire at the 10 public and private sector banks from 8 managerial level bankers from each bank. The data has been used to analyze by percentage analysis, mann-whitney test and the correlation value. The importance of analyzing these techniques is to check the control systems applied in Indian banking sector. The application and the effectiveness of financial control techniques are distinctively analyzed for public and private sector banks.