What is it about?
There are many guidelines to be followed for disclosure by banking sector to show their sustainability. Though structure of disclosure looks impressive but can not guarantee practical exposure to risk with burgeoning NPAs in public and private sector banks alike.
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Why is it important?
Banking sector is the most risk prone sector and hence banks need to follow various guidelines (viz., Basil II/III, SEBI, RBI, Responsible Business Behaviour) to demonstrate their sustainability to the stakeholders. However, the best of reporting will fall flat if NPAs are not taken care of. Only one simple idea of burgeoning NPAs will make banking sector companies unsustainable eventhough the other parameters of disclosures are within limits of guidelines. Kingfisher, Nirav Modi, Choksi, many builder defaulters are the best examples of such NPAs which have shaken not only the banking sector but the whole share market.
Perspectives
This article is an eye-opener to all those who care about sustainability of banking sector. With this study we tried to show that banking sector is most vulnerable to risk of NPAs. BASEL II/III norms have been complied by most of the banks in India but recent events have shown that the disclosures were/ are not made with transparency and accountability. Hence one can find out that disclosure/ reporting norms can be eye-washer to all the stakeholders as they are not reliable.
Dr. Sunita Upendra Sharma
FMS, MSU
Read the Original
This page is a summary of: Various Dimensions of Sustainability Reporting in Indian Banking Sector, Asian Journal of Research in Banking and Finance, January 2017, Diva Enterprises Private Limited,
DOI: 10.5958/2249-7323.2017.00087.6.
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