A STUDY ON CREDIT RISK MANAGEMENT IN INDIAN BANKS

Abstract

Abstract: Credit risk is a critical challenge in the banking sector, arising from borrower default and impacting financial stability. In India, rising Non-Performing Assets (NPAs) and ongoing financial sector reforms have heightened the importance of effective credit risk management. This study explores the credit risk management framework adopted by Indian banks in line with Basel accords and guidelines of the Reserve Bank of India (RBI). It is based on secondary data covering both public and private sector banks. The research highlights key practices such as risk assessment, monitoring, and mitigation techniques. Despite improvements in risk management systems, banks continue to face challenges due to economic fluctuations and technological disruptions. The study also emphasizes the role of regulatory compliance and capital adequacy in minimizing risks. Overall, effective credit risk management remains essential for ensuring banking stability and sustainable growth. Keywords: Credit Risk, Non-Performing Assets (NPAs), Credit Risk Management, Indian Banks, Basel Accords, Reserve Bank of India, Financial Sector Reforms, Risk Assessment, Regulatory Compliance, Banking Stability