Risk Management In Banks : Emphasising On Credit Risk As A Major Issue Of Concern In Indian Banking Business

Banks Play A Very Important Role In The Financial System In Mobilizing Financial Resources And Adding Value To Those Resources Through Their Various Activities. Risks Are Inherent In All Business Activities, More Particularly In Banking Business As It Is Concerned With Money, The Demand And Supply And Factors Influencing Them. The Indian Banking System, Which Was Earlier Working In A Highly Regulated Environment, Has Lately Witness Tremendous Deregulation. Rbi Has Given Greater Functional Freedom And Autonomy To Banks To Evolve Their Own Policies And Procedures For Effective Management Of Their Activities As Also The Risks Associated With Their Functioning.

This Paper Aims At Highlighting The Various Risks Associated Banks In India Emphasizing On The Credit Risk Management. It Also Strives To Focus On The Cause For The Rise Of Npa’s In The Banks And Attempts To Develop An Innovative Technique To Manage Risks In Indian Banks.