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Editorial Board A Refereed Monthly International Journal of Management
Prof. B. P. Sharma
(Editor in Chief)
Prof. Mahima Birla
(Additional Editor in Chief)
Dr. Khushbu Agarwal
(Editor)
Ms. Asha Galundia
(Circulation Manager)

 Editorial Team

Dr. Devendra Shrimali
Dr. Dharmesh Motwani
 

Voluntary Disclosure Practices of Selected Commercial Banks in India: A Comparative Study

 

Indu Yadav,

Research Scholar,

Faculty of Commerce, Banaras Hindu University,

Varanasi, India.

Dr. Prashant Kumar

Professor,

Faculty of Commerce, Banaras Hindu University,

Varanasi, India.

Abstract

 

Voluntary disclosure practices play an important role to earn goodwill for a business. As Disclosure of high quality financial and non financial information becomes useful for stakeholders to take decisions. It refers to disclosure of accounting and other information deemed relevant to the decision needs of users of their annual reports. Therefore, making it necessary for banks to makes timely and full disclosures. This paper is an attempt to examine the present position of voluntary disclosure practices prevailing in commercial banks in India. In addition, it also makes a comparative analysis of voluntary disclosure practices of public and private sector banks in India for the period 2012-2016.

Keywords: Voluntary Disclosures, Disclosure variables index, Annual reports

 

1) Introduction:

The present business scenario has taken a shape from national to international which requires more transparency in disclosure of business operations for the benefit of widespread users and taking a meaningful decisions. Hence, the increased complexity of business, structures, and transactions is driving the need for greater and more robust disclosure requirements in today’s globalized environment. Disclosure is the process through which an entity communicates with the outside world (Chandra, 1974). Disclosure can be defined as the communication of financial as well as non financial information, which consists of all details regarding business activities that are disclosed either mandatory or voluntary to the users of corporate report (Keyur, 2012).Mandatory disclosures consists of information that is required to be disclosed according to the securities law, accounting principles, and regulatory agencies’ regulations (Tian &Chen, 2009).whereas, voluntary disclosures information refers to additional information delivered by firms along with the mandatory information with a view to reduce the information asymmetry between insiders and outsiders (Hasan & Hosain,2015). The main objective of disclosing voluntary information is to strongly communicate the company’s value to its stakeholders. As more information is available, stakeholders can easily recognize the value, and predict future performance lowering the risk of the investment.

Various sources like, prospectus, press release, newspapers, magazines, website etc. are used by the management to disclose the information regarding performance and future policies and programmes of the bank. Despite of these, annual report is recognized as the most important source containing financial as well as non financial information of banks.

Banks are the most important pillar of a country’s financial system, as it together facilitates the function of saving, advancing loans and simultaneously pooling surplus and channelizing the saving to deficit sector. When a bank efficiently mobilizes and allocates funds it results into decrease in cost of capital, increase in capital formation and enhancement in productivity and growth of the firm. During the last two decades, banking system in India has undergone a number of significant changes, resulting in greater competition and consequently more risks. Therefore, to avoid such risks disclosure practices have become inevitable in recent years. A document entitled “Enhancing Bank Transparency” Basel, 1988 released by Basel committee on Banking Supervision, considering transparency to be a key element of an effectively supervised, safe and sound banking system. It observed that banks, in regular financial reporting and other public disclosures provide timely information, which aids market participants’ assessment of banks. Therefore, adequate public disclosures facilitates a more efficient allocation of capital between banks , since it helps the market to accurately assess and compare the risk and return prospectus of individual banks (Hossain, 2008).

 

2) Literature Review:

  • Saha, K. A., & Akter, S., (2013) in their paper entitled “Corporate Governance and Voluntary Disclosure Practices of Financial and Non- Financial Sector Companies in Bangladesh” has examined the relationship between voluntary disclosure and corporate governance attributes of financial and non-financial sector listed in Dhaka stock exchange. The several attributes of corporate governance includes (percentage of equity owned by the insiders, percentage of equity held by the institution, board size, board audit committee and proportion of independent directors on the board). A Voluntary disclosure index of 40 items consisting of (General corporate information, corporate governance information, financial information, financial review information, employee information, future forecast information and graphical information) was constructed. The results indicate that companies in the financial sector disclose more voluntary information than non- financial companies. It also indicates negative association between voluntary disclosure and percentage of equity owned by insiders. However, firm size and profitability show significant positive relationship with voluntary disclosures. Further, there is no significant relationship with the percentage of equity held by institution, board size, board audit committee and percentage of independent directors on the board of directors.
  • Rouf, A. Md., Hasan, S. Md., & Ahmed, A.A.A, (2014) in their research paper entitled “Financial Reporting Practices in the Textile Manufacturing Sectors of Bangladesh” studied the factors that influence companies to disclose voluntary information in their annual reports of Textile Manufacturing Companies in Bangladesh. The study used ordinary least square (OLS) regression model to examine the relationship between depend variable and independent variables. An index of 68 voluntary items was constructed for the study. The results of the study reveal a positive association between board size and voluntary disclosure and also total assets with voluntary disclosure. It also indicates the extent of voluntary disclosure is negatively related to the ownership structure.
  • M.T,(2014) in his paper entitled “Does Size Affect the Non-Mandatory Disclosure level in the Annual Reports of Listed Banks in Bangladesh” analyzed the impact of firm size on the level of non-mandatory disclosure in the annual reports of listed banks in Bangladesh. The is based on the annual reports of 15 banking companies listed on the Dhaka Stock Exchange and Chittagong Stock Exchange. A disclosure checklist with 58 items was constructed. The study use Ordinary Least Square (OLS) regression model to assess the effect of size on the voluntary disclosure level. The findings of the study indicate that size of a firm is a significant factor in explaining the level of non- mandatory disclosure.
  • Hasan, T. Md. and Hosain, Z. Md. (2015) in their research paper “Corporate Mandatory and Voluntary Disclosure Practices in Bangladesh: evidence from listed companies of Dhaka Stock Exchange” have examined the extent and level of mandatory and voluntary disclosure practices of companies in Bangladesh. A sample of 54 listed companies in Bangladesh for a period of 2010 to 2013 has been selected for the study. It also examines the results of the association between company specific characteristics and mandatory as well as voluntary disclosure of the sample companies. The Results indicate that firm size in terms of total asset and status of the company significantly and positively affects the level and extent of voluntary disclosure in the annual report of Bangladeshi companies. It future concludes that disclosure compliance is poor among listed companies. They disclosed an average of 50.62% of the items selected during the study period of 2010 to 2013.The minimum score found is 20.89% and maximum is 77.08%. By using panel data regression analysis this study has found that company age and the status of the company (industry type) have appeared to be significant function for mandatory disclosure. On other hand company size in terms of total asset and sales, and company profitability was also found to have no effect on mandatory disclosures.
  • Hawashe (2016) in his paper entitled “Voluntary Information Disclosure in the Annual Reports of Libyan’s Commercial Banks: A Longitudinal Analysis Approach” measures the level of voluntary information disclosure in annual reports of listed and unlisted Libyan’s commercial banks. It uses longitudinal analysis approach to examine any significant improvement in the levels of voluntary disclosure in the annual reports. A voluntary disclosure index of 63 items was constructed. The results reveal that level of background information is the highest level of voluntary disclosures over the periods and the level of corporate social information is the lowest level of voluntary disclosure in the annual reports.

 

3) Research Objectives:

The objectives of the study are:

  1. To examine the voluntary disclosure practices of selected commercial banks in India
  2. To do the comparative study of voluntary disclosure practices of selected public and private sector banks in India.

 

4) Research Hypothesis:

The   research hypothesis is:

H0: There is no significant difference in the voluntary disclosure practices of public and private sector banks in India.

Ha: There is significant difference in the voluntary disclosure practices of public and private sector banks in India

 

5) Research Methodology:

5.1) Sample Selection: Three public and three private sector banks have been selected on the basis of deposits for the purpose of study as shown in (Table 1)

Table 1: List of Selected Public and Private Sector Banks on the Basis of Deposits

 

Serial No.

Public Sector Banks

Private Sector Banks

1

State Bank of India

HDFC Bank Ltd

2

Bank of Baroda

ICICI Bank Ltd

3

Bank of India

Axis Bank Ltd

Source: Statistical Tables Relating to Banks in India 2015-2016, RBI.

 

5.2) Period of the Study: The study examines the voluntary disclosure practices of selected commercial banks in India for the period of five years from 2011-2012 to 2015-2016.

 

5.3) Data Collection: The study is based on secondary data. The annual reports of selected public and private sector banks are the major source of data.  It has been collected from official websites of selected banks. Further, other published literatures have been also used for the purpose of the study.

5.4) Analysis of Data:

Content Analysis’ has been used to examine the voluntary disclosure practices of commercial banks in India.  For the purpose of the analysis voluntary disclosure index has been prepared and analysed.

 

 5.4.1) Construction of Voluntary Disclosure Index:

A major step in the construction of the voluntary disclosure index is the selection of information items disclosed voluntarily by commercial banks in their annual reports as there are no legal provisions or accounting standards regarding voluntary disclosures. So, voluntary disclosure has been identified from available literatures and previous studies (Barako, 2007, Hossain, 2008, Saha & Akter 2013 and Hasan & Hosain, 2015).In addition to, Basel III norms introduced in 2010. Basel III is a comprehensive set of reform measures to strengthen the regulation, supervision and risk management of the banking sector. It has been implemented in India in phases from April 1, 2013 and it is expected to be fully implemented from March 31, 2019. So, Basel III, pillar 3 has been taken as voluntary disclosures for the study.  A set of 10 major variables are selected for analysis. Thus, total number of voluntary item index for years 2011-2012 & 2012-2013 is 62 and for 2013-2014 to 2015-2016 is 154 including Basel III, Pillar 3 as shown in following Table :

 

Table 2: Voluntary Disclosure Variables Index (Pre-BASEL III)

 

Serial No.

Voluntary Disclosure Variables

No. of Items

Percentage

1

General Information about Bank

6

9.68

2

Employees related information

3

4.84

3

Key non financial statistics

8

12.91

4

General Risk Management

5

8.06

5

Corporate social disclosures

11

17.74

6

Disclosure regarding committee

10

16.13

7

Financial performance information

9

14.52

8

Corporate Governance Information

5

8.06

10

Miscellaneous

5

8.06

 

Total

62

100.00

 

Table 3: Voluntary Disclosure Variables Index (Post-BASEL III)

 

Serial No.

Voluntary Disclosure Variables

No. of Items

Percentage

1

General Information about Bank

6

3.90

2

Employees related information

3

1.95

3

Key non financial statistics

8

5.19

4

General Risk Management

5

3.25

5

Corporate social disclosures

11

7.14

6

Disclosure regarding committee

10

6.49

7

Financial performance information

9

5.84

8

Corporate Governance Information

5

3.25

9

Basel III, Pillar 3 Disclosures

92

59.74

10

Miscellaneous

5

3.25

 

Total

154

100.00

 

The above table depicts the number of voluntary disclosure items under each variable for pre-Basel III & Post-Basel III. The lists of the 154 voluntary disclosure items are comprised in Appendix No. 1.

 

5.4.2) Scoring the Voluntary Disclosure Index:

There are two methods for determining the level of corporate disclosure: weighted and un-weighted. The un -weighted disclosure index approach has been used in this study to measure the extent of disclosure of voluntary information. The un-weighted approach, uses a dichotomous procedure to score each bank, by awarding ‘1’ point if an item is disclosed in the annual report and ‘0’ is awarded if an item is not disclosed in the annual report. This approach has been adopted in several previous empirical disclosure studies (e.g. Cooke,1989, Hossain, 2008, Saha & Akter,2013, Neogy & Ahmed, 2015 and Hasan & Hosain, 2015).

This approach is based on the assumption that each information item in the disclosure index is considered equally important to all users of corporate annual reports.

After scoring, total voluntary disclosure index score (TVDIS)   of   each bank for each year is calculated. TVDIS is the ratio between Total Disclosure Score Obtained to Maximum Obtainable Score. The fraction is then multiply by 100 to convert into percent.

6) Results and Interpretation:

The commercial banks are categorized into public and private sector banks. To examine the voluntary disclosure practices of public and private sector banks during the period of study’ TVDIS of each bank is shown for Pre BASEL III and Post BASEL III in Table 4 & 6 along with TVDIS and mean disclosure score. The rank has been also assigned accordingly.

 

The following table shows the Pre-Basel III voluntary disclosure score for the years 2011-2012 and 2012-2013 along with TVDIS percentage and ranking of the public and private sector banks under the study.

 

Table 4: TVDIS of Selected Public and Private Sector Banks (Pre-BASEL III)

 

Serial No

List of Banks

Voluntary Items (62)

 
   

2011-2012

2012-2013

Pooled TVDIS %

Rank

1

State Bank of India

55 (88.71%)

56 (90.32%)

89.52

1

2

Bank of Baroda

54 (87.10%)

55 (88.71%)

87.90

2

3

Bank of India

50 (80.65%)

52 (83.87%)

82.26

3

4

HDFC Bank Ltd.

43 (69.35%)

45 (72.58%)

70.97

6

5

ICICI Bank Ltd.

44 (70.97%)

46 (74.19%)

72.58

5

6

AXIS Bank Ltd.

45 (72.58%)

46 (74.19%)

73.39

4

Total (Average)

78.23%

79.96%

 

Source: Compiled from Annual Reports of Selected Public Sector and Private Sector Banks

The above table depicts that TVDIS percentage of public sector bank is higher than the private sector banks during the period under the study. The State Bank of India has the highest disclosure score of 89.52% during the period of two years and ranked first among all the public and private sector banks under the study. The second highest disclosure score has been found 87.90% in case of Bank of Baroda while 82.26% has been found in case of Bank of India and ranked second and third respectively.

Similarly’ in case of private sector banks under the study, the TVDIS percentage has been found highest of AXIS Bank Ltd. and ranked fourth while ICICI Bank Ltd. and HDFC Bank Ltd. have been ranked fifth and sixth respectively. Thus, it may be suggested that private sector banks should pay more attention in disclosing of information to show more transparency in the banking activities and create a good image in the public.

 

Table 5: Empirical Result (Pre-BASEL III)

t-Test: Two-Sample Assuming Equal Variances

     

 

Public Sector Banks

Private Sector Banks

Mean

86.56

72.31

Variance

2.31

3.61

Observations

2

2

df

2

t Stat

8.277

P(T<=t) one-tail

0.007

t Critical one-tail

2.920

P(T<=t) two-tail

0.014

t Critical two-tail

4.303

Computed

The Independent t-test has been used to compare the voluntary disclosure practices of public and private sector Banks in India. The p-value is 0.014, significant at 5 percent level of significance. It depicts that there is a significant difference between the voluntary disclosure practices of public and private sector banks in India .Thus the null hypothesis has been rejected and alternate hypothesis has been accepted. Thus, it can be concluded that voluntary disclosure practices of public sector are different from private sector banks.

 

 

TVDIS of Selected Public and Private Sector Banks (Post-BASEL III)

The following table shows the Post-Basel III voluntary disclosure score for the years2013-2014 to 2015-2016 along with TVDIs percentage and ranking of the public and private sector banks under the study:

Table 6: TVDIS of Selected Public and Private Sector Banks (Post-BASEL III)

 

Serial No

List of Banks

                Voluntary Items (154)

   

2013-2014

2014-2015

2015-2016

Pooled TVDIS %

Rank

1

State Bank of India

141

(91.56%)

143

(92.86%)

145

(94.16%)

92.86

1

2

Bank of Baroda

130

(84.42%)

130

(84.42%)

132

(85.71%)

84.85

3

3

Bank of India

133

(86.36%)

133

(86.36%)

135

(87.66%)

86.79

2

4

HDFC Bank Ltd.

123

(79.87%)

123

(79.87%)

128

(83.12%)

80.95

6

5

ICICI Bank Ltd.

123

(79.87%)

125

(81.17%)

128

(83.12%)

81.39

5

6

AXIS Bank Ltd.

128

(83.12%)

129

(83.77%)

130

(84.42%)

83.77

4

Total (Average)

84.22%

84.74%

86.37%

 

Source: Compiled from Annual Reports of Selected Public Sector and Private Sector Bank

The above Table (3) depicts that TVDIS percentage of public sector bank is higher than the private sector banks during the period under the study. The State Bank of India also has the highest disclosure score of 92.86% during the Post-Basel III period and ranked first among all the public and private sector banks under the study. The second highest disclosure score has been found 86.79% in case of Bank of India while 84.85% has been found in case of Bank of Baroda and ranked second and third respectively.

Similarly’ in case of private sector banks under the study, the TVDIS percentage has been found highest of AXIS Bank Ltd. and ranked fourth while ICICI Bank Ltd. and HDFC Bank Ltd. have been ranked fifth and sixth respectively. Thus, it may be suggested that private sector banks should pay more attention in disclosing of information to show more transparency in the banking activities and create a good image in the public.

 

Table 7: Empirical Result (Post-BASEL III)

t-Test: Two-Sample Assuming Equal Variances

     

 

Public sector Banks

Private Sector Banks

Mean

88.17

82.03

Variance

0.81

1.83

Observations

3

3

df

4

t Stat

6.534

P(T<=t) one-tail

0.001

t Critical one-tail

2.132

P(T<=t) two-tail

0.003

t Critical two-tail

2.776

Computed

The Independent t-test has been used to compare the voluntary disclosure practices of public and private sector Banks in India. The p-value is 0.003, significant at 5 percent level of significance. The implication of it is that there is a significant difference between the voluntary disclosure practices of public and private sector banks in India .Thus’ the null hypothesis has been rejected and alternate hypothesis has been accepted. Thus, it may be suggested that voluntary disclosure practices of public sector are different from private sector banks.

Conclusion:

The study has empirically examined the extent of voluntary disclosure practices of selected public and private sector commercial banks in India. Bank wise voluntary disclosures indicate that the public sector banks disclosed more voluntary information as compared to private sector banks. The State Bank of India has the highest disclosure score during the period under the study whereas; Axis Bank Ltd. has highest disclosure score among private sector banks in India. However, there is a slight improvement in the voluntary disclosure practices during the period of the study. All selected public and private sector banks are following Basel III, Pillar III guidelines and making disclosure in their annual reports. From the above analysis and findings it can be concluded that some voluntary information such as financial performance items, corporate governance report items and Basel III pillar 3 disclosures items have been more disclosed by public sector banks in comparison to private sector banks in India. It may be suggested that public and private sector banks should provided more corporate social information in their published annual reports.

Further, it may also be suggested that private sector banks should pay more attention in disclosing of voluntary information to show more transparency in their banking activities and create a good image in the public.

Scope for Future Research:

The study confines to only three public sector banks and three private sector banks. It shall be noted that more banks can be included for further study. Further, the study has been focused only on voluntary disclosures, however, it can also include mandatory disclosures.

References:

1)Chandra, G. (1974). “A study of the consensus on disclosure among public accountants and security analysts”. The Accounting Review49(4), 733-742

2)Hossain, M. (2008), “The extent of disclosure in annual reports of banking companies: The case of India”,European Journal of Scientific Reserach Vol.23 No.4. pp.660-681.

3)Hawashe, A. A. M.(2016). “Voluntary Information Disclosure in the annual reports of Libyan’s Commercial Banks: A Longitudinal Analysis Approach”, European Journal of Accounting, Auditing and Finance Research, Vol.4,No.5,pp.22-48.

4) Hasan.T.Md, & Hosain, Z. Md,(2015), “ Corporate  Mandatory and Voluntary Disclosure Practices in Bangladesh: Evidence from listed companies of Dhaka Stock Exchange”, Research Journal of Finance and Accounting, Vol.6, No. 12, ISSN2222-1697.

5) Hasan, M. T,(2014), “ Does Size Affect the Non Mandatory Disclosure level in the annual reports of listed Banks in Bangladesh?”, International Journal of Economics, Commerce and Management. Vol. II, Issue 2.

6)Neogy, T. K., & Ahmed, A. A. A. (2015). “The Extent of Disclosure of Different Components of Disclosure Index: A Study on Commercial Banks in Bangladesh”, Global Disclosure of Economics and Business4(2), 100-110,

7)Rouf, D., & Abdur, M. (2011), “Corporate characteristics, governance attributes and the extent of voluntary disclosure in Bangladesh", Asian Journal of Management Research .ISSN 2229-3795.

8)Saha, A. K., & Akter, S. (2013), “Corporate governance and voluntary disclosure practices of financial non-financial sector companies in Bangladesh”.

9)Tian, Y., & Chen, J. (2009), “Concept of voluntary information disclosure and a review of relevant studies”. International Journal of Economics and Finance1(2), 55.

10) www.sbi.co.in

11)www.bankofbaroda.com

12)www.bankofindia.com

13)www.hdfcbank.com

14)www.icicibank.com

15)www.axisbank.com

16) www.rbi.org.in

Appendix No.1 Disclosure Index of Voluntary Information Items

                      (For Pre-BASEL III and Post- Basel III)

A)  General Information about the Banks

1

Brief Narrative History of the bank

2

Information regarding Associates/Subsidiaries

3

Web address of the bank

4

Corporate Mission & Vision

5

Awards & Accolades received by bank

6

Key product and services

B) Employees related Information

7

Employee strength

8

Employees Benefits

9

Employees Training & Development

C) Key Non Financial statistics

10

Number of Branch

11

Details of Branch location

12

Information on ATM

13

Location of ATM and their address

14

Information on Financial Inclusion

15

Information regarding new Banking Schemes

16

Information regarding Development Channels

17

Credit cards/Debit cards

D) General Risk Management

18

Discussion of overall risk management policies and procedures

19

Information on how risk are managed

20

Information on Risk Management structure

21

Information on new initiatives in risk management

22

Asset liability Management

E) Corporate Social Disclosures

23

Information Regarding types of loans

24

Information regarding financial literacy and credit counselling centres

25

Information regarding Real estate, Habitual & Housing development

26

Small & Medium Enterprise Business unit

27

Information regarding recent development during the year

28

Credit flow to micro & small enterprise

29

Information regarding marketing and cross selling

30

Representation of SC/ST staff

31

New Initiatives during the year

32

International operations

33

Information regarding environment sustainability

F) Disclosures regarding Committee

34

Risk Management Committee

35

Special Committee Monitoring fraud

36

Customer Service Committee

37

IT Strategy Committee

38

Board Committee to monitor recovery

39

Corporate Social Responsibility Committee

40

Management Committee of Board

41

Credit approval Committee

42

Share/Bond transfer Committee

43

Steering Committee of the board on HR

G) Financial Performance

44

Cost to Income ratio

45

Net Interest Margin

46

Return on assets

47

Return on equity

48

Earnings per share

49

Book value per share

50

Dividend payout ratio

51

Credit deposit ratio

52

Dividend per share

H) Corporate Governance Report

53

Details about a non-executive chairman/academic/professional/business experiences

54

A half yearly declaration of financial performance including the summary of the significant events, may be sent to each household of shareholders

55

The financial statements of the bank are without any audit qualifications

56

The appointment of the chairman and four managing directors

57

The head of internal audit reports directly to the audit committee of board  

I)

Miscellaneous

58

Information Regarding Credit Rating Agency

59

Assets quality & NPA Management

60

Chairman/MD Report

61

Macro Economic scenario

62

KYC/AMIL

J) Basel III, Pillar 3 disclosures

 

Scope of Application

 

Qualitative Disclosures

63

List of group entities considered for consolidation

64

List of group entities not considered for consolidation

 

Quantitative Disclosures

65

Capital deficiencies which are not included in the regulatory scope of consolidation

66

Bank's total interest in insurance entities

67

Restrictions or impediments on transfer of funds

 

Capital Adequacy

 

Qualitative Disclosures

68

A summary discussion of the bank's approach to assessing the adequacy of its capital

 

Quantitative Disclosures

69

Capital requirements for credit risk

70

Capital requirements for Market risk

71

Capital requirements for operational risk

72

Common Equity Tier 1, Tier 2 and total capital ratios

 

Credit Risk: General Disclosures for all banks

 

Qualitative Disclosures

73

Non-performing assets

74

Out of Order status

75

Overdue

 

Quantitative Disclosures

76

Total Gross Credit Risk Exposures

77

Geographical Distribution of Exposures

78

Industry type Distribution of exposures fund based/Non Fund based

79

Residual Contractual Maturity Breakdown of Assets

80

Amount of Gross NPAs

81

Net NPAS

82

NPA Ratio

83

Movement of NPAs

84

Movement of provisions for NPAs

85

Amount of Non-Performing Investments

86

Amount of provisions held for Non-Performing Investments

87

Movement of provisions for depreciation on investments

 

Credit Risk: Disclosures for Portfolio subject to the Standardised Approach

 

Qualitative Disclosures

88

Details regarding external rating agencies

89

Types of exposures for which each agency is used

90

Description of the process used to transfer public issue ratings onto comparable assets in the banking book

 

Quantitative Disclosures

91

Amount of group's outstanding in each risk bucket as well as those that are deducted

 

Credit Risk  Mitigation: Disclosure for Standardised Approaches

 

Qualitative Disclosures

92

Policies and processes for, and an indication of the extent to which the bank makes use of , on- and off- balance sheet neeting

93

Policies and Processes for Collateral Valuation and Management

94

Description of the main types of collateral taken by the bank

95

Main types of Guarantor Counterparty and their creditworthiness

96

Information about market or credit risk concentration within the mitigation taken

 

Quantitative Disclosures

97

Separately disclosed credit risk portfolio the total exposure that is covered by eligible financial collateral after the application of haircuts

98

Separately disclosed portfolio the total exposure that is covered by guarantees/credit derivatives(whenever specifically permitted by RBI)

 

Securitisation Exposures: Disclosure for standardised approach

 

Qualitative disclosures

99

The general qualitative disclosure requirement with respect to securitisation

100

Summary of the bank's accounting policies for securitization activities

101

In the banking book, the names of ECAIs used for securitisations and the types of securitisation exposure for wish each agency is used

 

Quantitative Disclosures

102

The Total amount of exposures securitised by the bank

103

Securities losses recognized by the bank during the current period broken by the exposure type ( e.g. Credit cards, housing loans, auto loans etc.)

104

Amount of assets intended to be securitised within  year

105

Amount of assets originated within a year before securitisation

106

The Total amount of exposures securitised by exposure type and unrecognised gain or losses on sale by exposure type

107

On balance sheet securitisation exposures retained or purchased broken down by exposure type and

108

Off balance sheet securitisation exposures broken down by exposure type

109

Exposures that have been deducted entirely from Tier 1 capital

 

Quantitative Disclosures: Trading Book

110

Aggregate amount of exposures securitised by the bank for which the bank has retained some exposures and which is subject to the market risk

111

Aggregate amount of securitised on exposures retained or purchased separately for securitisation

112

Securitization exposures that are deducted entirely from Tier 1 capital

 

Market risk in Trading Book

113

Standardised Measurement Method for computing capital requirement for Market Risk

114

Market Risk Management Department

115

MRMD is responsible for identification, assessment and reporting of market risk

116

Board approval policies with defined market risk management parameters

117

Risk monitoring process

118

Risk management and reporting

119

Limits as approved by the board is monitored and exception reported to top management

120

Value at Risk

121

Foreign offices monitor risk of their investment portfolio as per RBI stipulations

122

Internal model approach for calculating capital charge for market risk and submitted Letter of Intent  to RBI

 

Quantitative Disclosures

123

Minimum Regulatory Capital requirements

 

Operational Risk

 

Qualitative disclosures

124

The structure and organization of operational Risk Management function

125

Policies for control and mitigation of operational Risk

126

Strategies and processes

127

The scope and nature of risk reporting and measurement systems

 

Interest Rate Risk in the Banking Book

 

Qualitative Disclosures

128

Interest Rate Risk

129

Prudential limits for monitoring of various interest risks

 

Quantitative Disclosures

130

Earning at Risk

131

Market value of Equity

132

Exposures related to Counterparty Credit Risk

 

Composition of Capital

133

Common Equity Tier 1 capital: Instruments and reserves

134

Common Equity Tier 1 capital before regulatory adjustments

135

Additional Tier 1 capital : instruments

136

Additional Tier 1 capital: regulatory adjustments

137

Tier 2 capital :instruments and provisions

138

Tier 2 capital: regulatory adjustments

139

Capital ratios

140

National minima(If different from Basel III)

141

Amounts below the thresholds for deduction(before risk weighting)

142

Applicable caps on the inclusion of provisions in Tier 2

143

Capital instruments subject to phase out arrangements

 

Composition of Capital - Reconciliation Requirements

144

Capital & Liabilities

145

Assets

146

Common equity Tier 1 Capital: instruments and reserves

147

Composition of Capital: Reconciliation requirement

148

Main Features of Regulatory Capital Instrument's

149

Full terms & Conditions of Regulatory Capital Instruments

150

Disclosure Requirements for remuneration

151

Equities: Disclosures for banking

152

Summary comparison of accounting assets vs. leverage ratio exposure measure

153

Leverage ratio common disclosure template

154

Additional Disclosure on Group Risk

 

 
 

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