A Study on Credit Risk Management at Karnataka State Co-operative Apex Bank Limited, Bengaluru

Abstract

The research conducted focused on the risks that the bank needs to face while granting loan to customer and also the ways, strategies and methods used to minimize such risks. Credit risk management is an analyzing tool for the bank to focus on their non-performing assets. The project also tries to analyse that lending has been the prior function of banking and exactly apprising a borrower’s credit worthiness has been the only method of lending successfully, the method of analysis required varies in function of types of lending being considered,” it actually helps in measurement of finance in complete detailed manner.” The major objective of this is to control the credit risk of the bank when they are issuing loans to required customers and also to giving some suggestions for proper utilization of loan amount and repayment of the same. Ensuring lending group of workers observe credit unions lending licence and by means of-laws is the first step in managing risk. the second step is to make certain board permitted rules exist to restrict or control other regions of credit danger, which includes syndicated and brokered loans, and the awareness of lending to individuals and their connected events. Financial information required for the analysis has been chosen from the financial statement like balance sheet and profit and loss account of the Bank. Data of four financial year starting from 2015-2018 has been collected.