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Effect of Credit Risk Management on Private and Public Sector Banks in India

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  • Asha Singh

Abstract

This paper examines the effect of credit risk management on private and public sector banks in India. Credit risk occurs when customers default or fail to comply with their obligation to service debt, triggering a total or partial loss. The primary cause of credit risk is poor credit risk management. When banks manage their risk better, they will get advantage to increase their performance (return). For this purpose researcher has taken one dependent return on asset (ROA) and two independent variables capital adequacy ratio (CAR) and non-performing assets (NPAs). The ROA is performance indicator. The CAR and NPAs is credit risk management indicator. Researcher has applied two way regression model.

Suggested Citation

  • Asha Singh, 2015. "Effect of Credit Risk Management on Private and Public Sector Banks in India," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(1), pages 97-106, January.
  • Handle: RePEc:hur:ijarbs:v:5:y:2015:i:1:p:97-106
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    References listed on IDEAS

    as
    1. Abul Hassan, 2009. "Risk management practices of Islamic banks of Brunei Darussalam," Journal of Risk Finance, Emerald Group Publishing, vol. 10(1), pages 23-37, January.
    2. Vasile DEDU & Roxana NECHIF, 2010. "Banking Risk Management in the Light of Basel II," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 2(2(543)), pages 111-122, February.
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