• Pavneet Kaur

Risk is the fundamental element that drives financial behavior. Financial institutions, should manage the risk efficiently to survive in the highly uncertain world. The future of banking will undoubtedly rest on risk management dynamics. Only those banks that have efficient risk management system will survive in the market in the end. Credit risk is the oldest and biggest risk that a bank, by virtue of its very nature of business, inherits. This has, however, acquired a greater significance in the recent past for various reasons. Foremost among them is the economic liberalization across the globe. India is on exception to this swing towards market-driven economy. Better credit portfolio diversification enhances the prospects of the reduced concentration credit risk profile and non-performing assets of public sector banks.. Risk Management is the application of proactive strategy to plan, lead, organize, and control the wide variety of risks that are rushed into the fabric of an organization’s daily and long-term functioning. Like it or not, risk has a say in the achievement of our goals and in the overall success of an organization. To achieve the objectives of the study data has been collected from secondary sources. Finally, it can be concluded that the banks should take risk more consciously, anticipates adverse changes and hedges accordingly; it becomes a source of competitive advantage, and efficient management of the banking industry. The study identifies various credit risks in scheduled banks and methodologies followed by banks to reduce risks, these by creating a better understanding of credit risks in Banking Sector.

Commercial Bank, credit risk, risk management.

"A Study of Credit Risk Management in Banks", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 5, page no.331-337, May-2019, Available :http://www.jetir.org/papers/JETIR1905R49.pdf

"A Study of Credit Risk Management in Banks", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 5, page no. pp331-337, May-2019, Available at : http://www.jetir.org/papers/JETIR1905R49.pdf