Disclosure Practices in Indian Banking Sector : A Comparative Study

Governance is a reform package to strengthen the corporate for making them more accountable,open, transparent,democratic and participatory. Governance in banks is a more complex issue than in other sectors because bank activities are less transparent and thus it is more difficult for shareholders and creditors to monitor their activities. The core of governance rests on the quality of transparency and disclosure. Protecting the interest of the depositors is a matter of paramount importance to banks. Regulators have recognized the vulnerability of depositors to the whims of managerial misadventures in banks and therefore have been regulating the banks more tightly than other corporate. There seems to be a little question concerning the need for serious research in the area of reporting practices of commercial banks. Financial disclosure is an effective communication of accounting information to its users for decision making. The users of financial statements should be in a position to evaluate and assess the company's earnings performance and financial position, so that,they are able to make intelligent investment decisions necessary for efficient allocation of scarce resources.