Study of Accounting and Reporting Practises of Commercial Banks for Investments in India

The Indian economy entered a phase of transition from a semi-controlled economy to a market-controlled economy in the early 1990s. The process of economic reforms which had been previously progressing at a snail's pace, gained momentum during this time. The hastened process of reforms brought about far-reaching changes in the Indian Economy in general and financial sector in particular. The banking sector, which is an important part of the financial system, in fact witnessed such radical changes in all the spheres of it's working that it seemed to have undergone a mini revolution in India.In today's challenging and competitive environment, the matter of designing appropriate strategies for improving the efficiency of accounting and reporting practices of commercial banks in accomplishing the investment and wealth maximization objectives is of utmost importance. It has made a path for multinational companies to access the Indian financial markets and ultimately resulting in substantial growth in the inflow of foreign direct investment and portfolio investment in India. Transpancy in bank disclosure reduces the level of information asymmetry and boasts investor's confidence in the Indian Banking Industry. This study examines the disclosure practices of Commercial Banks in India by analyzing their strengths and weaknesses. The index of disclosure has been used in this study to evaluate annual reports of some Commercial Banks in Public Sector, Private Sector and Foreign Banks in India. The paper highlights the significance of studying commercial bank's disclosures practices for investment in India