CREDIT RISK MANAGEMENT IN STATE BANK OF INDIA

EXECUTIVE SUMMARY

TITLE OF THE PROJECT

Credit Risk Management Of India

BACKGROUND OF PROJECT TOPIC

Credit risk is defined as a potential that a bank borrower or counterparty will fail to meet its
obligation in accordance with agreed terms, or in other words its defined as the risks that firms
customers and the parties to which it has lent money will fail to make promised payments is known
as credit risk

The exposure to the credit risk large in case of financial institutions,such commercial banks when
firms borrow money they in turn expose lenders to credit risk, the risk that the firm will default on its
promised payments. As a consequences, borrowings exposes the firm owners to the risk that firm
will be unable to pay its debt and thus be forced risk scoring and ratinto bankruptey.

Importance of the project:

The project helps in understanding the clear meaning of credit risk management in state bank of
india it explain abou thr credit risk scoring and ratingof the bank and also study the
comparativestudy of the credit policy with that of its competitpor helps in understanding the fair of
the credit policy of the bank and credit recovery management of the banks and also iys key
competitiors.
Objectives of the of the project

1.to study the complete structure of the history of the state bank of India

2.to know the different methods available fpr credit rating amd understanding the credit raising
procedure used in state bank of india

3.to gain the insights into the credit risk management activities of state bank of india the state bank
of india

4.to know the guide line of the rbi regarding credit rating and risk analysis

5.studying the credit policy adopted comparative analysis of public sector and the private sector.

METHODOLOGY

DATA COLLECTION OF THE METHOD

To fulfil the objective of my study I have taken both into consideration viz primary and secondary
data.collectb

PRIMARY DATA:primarydata has been collected through personal interview by direct contact method
the mehod which was adopted to the information is personal interview method personal interview
and discussion was made with the manager and other personnel in the organisation for this purpose.

SECONDARY DATA: The data is collected from Magzines, Annual reports, Internet, TextBooks.

The various sources that were used for collection of secondary data are

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