Disclosure Practices in Banking Sector of India: A Comparative Study

This study examines the disclosure practices of commercial banks in India, analyzing their strengths and weaknesses. It uses the index of disclosure to evaluate annual reports of commercial banks. The study highlights the significance of studying banks disclosure practices. It reviews existing literature on the subject, and formulates objectives and hypotheses. Transparency in bank disclosure reduces the level of information asymmetry and boosts investors confidence in the banking industry. Such banking disclosures in India are regulated by the Banking Regulation Act 1949, the Companies Act 1956, the Reserve Bank of India, Institute of Chartered Accountants of India, Securities and Exchange Board of India, and the recommendations of the Basel Committee. The study aims to:

• Examine the disclosure practices of commercial banks in India over the period of study;
• Compare the disclosure practices of selected private sector banks with public sector banks;
• Identify highly disclosed and least disclosed elements of banking disclosures;
• Examine the discriminatory power of total, mandatory, and voluntary disclosures in relation to public and private sector banks;
• Make suggestions for improving the quality of disclosure.