Since the existence of banks they are known to be major risk taking entities and therefore they are expected to release relevant risk-related information to the marketplace as part  a of good corporate governance, Banks in India are required to make risk disclosures in Annual Report under Basel II Accord from last 2-3 years. Indian AS 32 – Disclosure for Financial Instrument, same as IFRS 7 issued by Indian Accounting Standard Board, is made mandatory from 1-4-2011 for the most of the entities in India. The requirements as per Indian AS 32 for financial instruments are subsets of Basel II pillar 3 disclosures requirements for Banks. This study makes an attempt to measure Financial Instruments Disclosure in Annual Reports of Financial year 2011-12 of 27 Banks in India measured through two indices namely Quantity Disclosure Index and Quality Disclosure Index The findings show that there is lot of scope for improving the disclosure score. The study also explores the relationship of disclosure and Bank Size and Profitability.