Using two theoretical approaches agency theory and trust theory, this paper analyzes the banking relationship between
branch manager and loan officer of a bank branch in India. The analysis is performed across five dimensions supervisor
subordinate relationship, delegation of authority, assumption of risk in lending, goal congruence and mutual dependence.
This analysis provides a theoretical foundation for examining bank relationships in India. The role of culture in this relationship
is also examined as it is an important contributing factor in business relationships in India. Since Trust theory can explain
situations involving multifaceted relationships such as one between branch manager and loan officer using stakeholders’
perspective, this study concludes that the trust theory is a better descriptor of the banking relationship between
branch manager and loan officer in Indian banks.