Basel II Disclosure by PNB and ICICI bank: A Comparison and Implications

Asian Resonance(P: ISSN No. 0976-8602 RNI No.UPENG/2012/42622 VOL.-7, ISSUE-4(Part-1), October-2018 E: ISSN No. 2349-9443)

Abstract

 Amitabh Bhowmick

 Research Scholar, Institute of Management Studies, Banaras Hindu University, Uttar Pradesh, India

Shashi Srivastava

 Assistant Professor, Institute of Management Studies, Banaras Hindu University, Uttar Pradesh, India

The aim of this paper is to access the nature and characteristics of regulatory risk reporting in their disclosure of PNB and ICICI bank. The study explains that total quantity of disclosures as per pillar III of Basel II varies largely across PNB and ICICI bank. Researcher found word count on key risk management area of ICICI bank is much higher than PNB. However, majority of disclosures focused on credit risk, market risk and regulatory capital. Pillar I of Basel II which incorporates credit, market and operational risk, disclosure of the later risk is the least in both these banks. It is therefore expected that operational risk management issue could be the area of concern for the senior management and the board. It is observed that significant relationship existed between PNB and ICICI bank with respect to word count of all the dimensions of enterprise risk management. The author finds positive correlation between quantity of disclosure with total assets, net NPA and net profit and negative correlation with CRAR (%) and ROA in PNB. Further, positive correlation observed between Total asset, net profit, CRAR and ROA with the variations of the disclosure in ICICI bank whereas negatively correlation found with net NPA. This suggests possibly the precautionary attitude of private and more profitable banks toward excessive scrutiny by the regulator and to keep the confidence of share holders. 

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