The Impact of Credit Risk Analysis Practices on Risk Management in Indian Commercial Banks: An Empirical Investigation

Abstract

Banking industry has witnessed dramatic changes globally in the past two decades. Banks in today's scenario are not only moving towards effectiveness, but also towards excellence. Not only profile of the banking sector but also the nature of risk management in banks has changed dramatically. Size and functions of banks have increased tremendously and have become varied and complex. In order to meet the competition, banks are offering innovative products and computerizing their offices so as to improve speed of their operations. The expanded role of banks has given rise to various risk exposures. Market forces are also influencing the banking sector and this has further accentuated the risk element. Undoubtedly all banks in the present-day volatile environment are facing a large number of risks which may threaten a bank's survival and success. Hence, there lies an imperative need for the banks to address various risk elements and enhance risk management practices. This research paper aim to examine the impact of credit risk analysis practices on risk management of Indian banks. The study has been conducted by statistically analysis the views of employees of various banks.