Human Rights Disclosure in the Indian Banking Sector

Abstract

The scope and factors influencing human rights transparency in the Indian banking industry are investigated in this study in light of the Securities and Exchange Board of India’s (SEBI) mandated adoption of the Business Responsibility & Sustainability Reporting (BRSR) framework. Despite the banking sector’s influential role in socio-economic development, empirical data on its human rights transparency remain scarce. Based on stakeholder theory, the study uses a 25-point transparency index to assess disclosed information across four dimensions: employees, customers, communities, and value chain partners. A manual content analysis of reports from 32 banks listed on the National Stock Exchange of India (NSE) for the 2023-2024 financial year reveals a moderate average transparency score of 58.42%. Multivariate regression analysis reveals a strong positive correlation between the quality of financial reporting and bank size, internationalisation, and online presence. These findings suggest that large banks with a global presence and a strong internet presence are more aggressive in releasing information in order to reduce reputational risks and meet the needs of international investors. In contrast, financial performance and bank age have a limited influence, indicating that in India, financial transparency is primarily driven by regulatory compliance and external stakeholder pressure, rather than internal financial surpluses. This study highlights the need for uniform reporting requirements to increase the transparency of smaller domestic institutions, which is important information for investors and regulators.