Published Paper Details:

Introduction: Financial transparency in the banking sector refers to the timely disclosure of accurate and relevant qualitative as well as quantitative financial information to stakeholders in accordance with various accounting standards and generally accepted principles, allowing them to make informed decisions about the organization's financial condition, risk-taking, overall performance, and management. It plays a vital role in the overall corporate governance mechanism and protecting the interest of the stakeholders. Purpose: The paper aims to research the role of financial transparency and disclosure of corporate governance in the selected private and public sector banks and find its impact on their financial performance. Research Design: The study is based on secondary data collected from various sources, such as annual reports, the CMIE database, and Prowess IQ. To determine the financial transparency, disclosure, and level of corporate governance, a scorecard is created using the RBI guidelines, the Companies Act 2013, Revised Clause 49 of the listing agreement, and various other mandatory and non-mandatory financial reporting and corporate governance guidelines, while keeping various accounting standards and generally accepted principles in mind. Financial transparency in selected scheduled commercial banks is measured using various indicators and parameters. The higher the score a bank has, the greater is its level of financial transparency and corporate governance. Financial performance of banks is measured by five performance indicators namely, return on assets (ROA), return on equity (ROE), net interest margin (NIM), profit per employee (PPE), and net non-performing assets (NPA). The data is analysed using MS Excel and SPSS. Research limitations/implications: The paper is both descriptive as well as analytical in nature, supported by sufficient data and empirical findings. The Indian Banking Industry is very dynamic, constantly going through changes such as mergers and acquisitions, and is facing several challenges relating to financial transparency and corporate governance. The present study provides useful insights into the impact of financial transparency and corporate governance mechanisms of the selected bank's performance.