Literature Reviews

1)Bezawada Brahmaiah (2022)The primary objective of this paper is to examine the

risk management techniques and practices of credit risk management followed by
Indian commercial banks for the period from 2021-2017 to 2020-2021. The other
objective is to compare risk management practices followed by the public sector banks
(PSBs) and private sector of banks (PVBs). The study uses a sample of twelve banks
consisting of six largest public sector banks (PSBs) and six largest private sector banks
(PVBs) for the study. The sample accounts for 78% of the banking business of the
country. The study finds that the scheduled commercial banks (SCBs) are facing credit
risk, market risk and operational risk. The study finds that the credit risk management
process and practices include risk identification, risk assessment, risk analysis, risk
evaluation, risk monitoring and risk control. The study finds that private sector banks
(PVBs) have better credit risk management practices as compared to that of public
sector banks (PSBs). The PSBs have more NPAs than PVBs whereas PVBs have better
asset quality and better profitability ratios than PSBs during the study period.
Keywords: Risk Management in Banking, Credit Risk Management, Prudential Limits,
Credit Rating, Commercial Banks, Credit Portfolio.
2)Madugba Joseph (2023) Risk plays a significant role in uncertainty and the possibility
of losing, both of which can happen in every business transaction, at any place and at
any time. Credit risk is the potential loss of assets or income that could occur if a
borrower is unable to comply with the conditions of a loan agreement with the bank or
otherwise carry out as agreed. According to the credit risk theory, the lender is largely
at risk, which includes lost principal and interest.A bank that is insolvent may be
unable to repay a depositor’s money, for example, leading to a disruption loss that
might be either full or partial. The study’s major goal was to investigate the idea of
credit risk as it applies to banks and to comprehend how it may be handled to prevent
bank failure. Information from original journal papers that investigated the connection
between credit risk and commercial banks’ performance was gathered to fulfill the
main purpose. According to the assessment, credit risk is more dangerous for banks if it
is improperly managed, so efficient solutions should be used to lessen the impact of
credit risk on banks.
Keywords: risk, credit risk, credit risk management.
3) Neha Gupta(2023)Credit risk is most important in accounting of financial institution
and if no longer well managed, it could result to a monetary weakening in banks. This
paper is aimed towards investigating the effect of credit risk and debt coverage on
profitability of Indian banks. Factors that affect credit risk have been identified
through extent literature. The t-test and regression were used to examine the difference
between different sectors of Indian commercial banks to study the effect of credit risk
and debt coverage on bank's profitability. The results implied that there's significant
difference among select public and private banks. Also, regression analysis indicated
that the credit risk and debt coverage indicators was statistically significant to predict
the profitability ratios.
Keywords: Credit risk, debt coverage, bank, profitability, public and private sector
banks.
4)Kajal Chandra (2023)The purpose of the study of literature review is to focus on
theoretical foundation that is relevant to the study. In an economy, banks play a crucial
role in the growth and sustainability of the economy. Banks are prime intermediaries in
mobilizing resources and channelling the resources to various sectors of the economy.
Free and adequate flow of bank credit has a positive impact on the growth of the sector
and indirectly contributes towards increased national income, national production and
employment. Therefore, it is needless to emphasize that the health of the banks has a
direct bearing on the health of the economy. Credit is most obvious in banking sector.
Hence risk arises due to credit is known as credit risk. Banks are primarily exposed to
credit risk. Basel Accord 1988 focuses on credit risk and risk weighted assets. Credit
risk management is becoming increasingly important element in Indian banks as its
regulatory framework by BASEL II makes banks compulsory to implement credit risk
management. Credit risk management is playing an indispensable role towards the
relationship between credit risk performance and its components in Indian banks. In
addition by emphasizing the importance of credit risk management in an emerging
economy context characterized by increasing global competition, and rising forces of
globalization, liberalization, consolidation and deregulation the growth of non-
performing assets can be controlled and managed efficiently.
Key words: Credit, Credit Risk, Risk Weighted Assets, Credit Risk Management,
Banks, Basel, NPA
5)Pitambar Sapkota(2023)The purpose of this study is to investigate the effect of credit
risk management on financial performance of commercial banks in Nepal. This study
applies the Pooled Ordinary Least Square estimator on balanced panel data of ten
commercial banks over the period 2012-2021. The study uses CAR, NPLR, CDR, MQR
and BS as credit risk indicators and ROA as financial performance indicator. The study
finds that CAR, NPLR, and BS have positive and insignificant effect and negative and
insignificant effect of CDR with ROA. Similarly, there is positive significant effect of
MQR with ROA. The findings indicate that credit risk management has significant
impact on financial performance of commercial banks of Nepal. Therefore, the success
of the banks in terms of financial performance depends on credit risk management.
Keywords: return on asset, capital adequacy ratio, non- performing loan ratio, credit to
deposit ratio, management quality ratio and bank size.
6)Anjali Chaudhary (2016).A wide array of credit risk management (CRM) practices
have been followed by commercial banks since their inception. These practices have
evolved over the years; new practices/strategies have been formulated, old practices
have been updated/revised, traditional operations are being replaced by new
sophisticated procedures. With such continuous evolution of CRM practices, CRM
capability maturity of banks has also improved over time. Further, the role/importance
and effectiveness of each CRM practice in determining the maturity of CRM capability
is an important issue that needs to be addressed. A number of capability maturity
models have been suggested in general for a business organisation. However, these
studies focus on the assessment of overall business risk management maturity and do
not offer any model to trace the path of evolution towards maturity in CRM capability
in commercial banks. This article attempts to fill this gap by investigating into how
commercial banks mature in their ability to manage credit risk in their advances
portfolio. The objective of this study is to go beyond descriptive in terms of specifying
practices, challenges and issues in each stage of CRM capability maturity and also be
prescriptive in terms of recommended strategies and actions to move on to the next
higher level of CRM capability maturity. The path of A comprehensive study of Indian
commercial banks on maturity of credit risk management capability is illustrated on the
basis of primary data collected from 35 Indian commercial banks (representing 70 per
cent of the population) through a structured questionnaire in year 2014–2015. A
comprehensive list of questions relating to major elements of CRM namely, (a) CRM
organisation, (b) CRM policy and strategy; and (c) CRM operations and systems at the
transaction level; and (d) CRM operations and systems at the portfolio level were
included in questionnaire. The CRM index tool is employed to benchmark a given
commercial bank’s approach to CRM against four standard levels of maturity. The
statistical analysis of scores in four major elements of the CRM index for banks lying in
different stages of maturity clearly brings out whether or not credit risk
processes/techniques/tools/procedures are adequate, identifies realistic targets for
improvement and shall enable bank management to frame concrete plans for evolving
towards a higher CRM capability maturity level. This study, by drawing conclusions
from empirical data, is unique and contributes to additional insights into the risk
management literature in emerging economies. Keywords: Commercial banks, credit
risk management capability maturity, credit risk management operations and systems,
Indian banking sector.
7.The focus of this research is the investigation of banker views of credit risk determinants in
Indian commercial banks in the Covid-19 scenario. The Descriptive Research Style was
introduced throughout the review. To get back across the understanding of the banker, the
analysis used the form extensively. Bankers are elected from eight commercial banks
operating in the Republic of India by means of a sampling methodology. Loan officers,
relationship managers, credit consultants, credit administrators and credit-related role holders
who work at every bank and head office were happy to fill the questionnaire. Respondents
were asked to include their understanding of credit risk determinants by considering banks'
particular determinants, industry-specific determinants and macroeconomic determinants. As
a result,Based on the data produced by the report, the banks identified clear determinants with
improperly negotiated credit terms, impaired disposition honesty, inadequate credit risk
appraisal, subsequent interest rate and currently the Covid-19 scenario region identified the
key triggers of non-performing loans. In addition, based on bank-specific factors, the study
found that the amount of information sharing among banks at once results in non-performing
loans. In addition, the study finds that the increase in speed, condition and rate from political
economy influences reduces the efficiency of the loan. Anybody learned that in the time of
the pandemic corona time citizens area unit demand to be separated within the house because
of this many people lost their regular jobs so that they don't have the cash to pay for the
necessary items and debts to persuade them to keep the loan.The analyser recommend that to
cut back credit risk the bank's research and development department or the corporate
designing division ought to perform an exact quantitative and analysis on Non-performing
loan determinants thus on an act throughout a proactive and defensive manner.
Keywords: Non-performing Assets, Bankers perception, Bank distinctive determinants, trade
Specific determinants, Macro-economic determinants, Covid-19 .
8.The main aim of the study is to analyse the impact of credit risk indicators on
performance of Indian private sector banks in the post financial crises period. The
study period covers ten years (post financial crisis period) from 2008-2009 to 2017-
2018. For the purpose of the study, top ten private sector banks have been selected
based on the banks which have the highest share in Nonperforming Assets. The
sample private sector banks namely, ICICI Bank, Axis Bank, HDFC Bank, Jammu
and Kashmir Bank, Kotak Mahindra Bank, Karur Vysya Bank, Federal Bank, Yes
Bank, Lakshmi Vilas Bank, and South Indian Banks are chosen for the study. The
data analysis was done using ratio analysis and statistical tools like mean, standard
deviation, co-efficient of variation, compound annual growth rate and multiple
regression. The findings also reveal that the credit risk indicators brunt the bank
performance, thereby presenting them to incredible danger of banks financial
health. Therefore, the study concludes that the banks must take strict and essential
steps to recover their loans and follow the reserve banks guidelines like Prompt
Corrective Action (PCA) framework and maintain enough capital to absorb the
risks.

Key Words: Credit Risk Indicators, Bank Performance, Post Financial

Crises Period, Private Sector Banks, Ratio Analysis, Descriptive Statistics
and Multiple Regression.
9. Credit risk has become one of the main risks faced by banks under the background of
increasing loan demand. Meanwhile, bank credit risk may be affected by a number of factors,
including the expansion rate of Gross Domestic Product (GDP), changes in interest rate,
unemployment rate and even more. These macroeconomic factors are crucial in determining
how credit risk for banks is shaped. This paper concludes the different impacts of different
macroeconomic factors discussed in several papers on the risks of bank credit, and illustrates
how changes in GDP growth rate and rate of interest affect credit risks. Through
comprehensive literature review and empirical research, this paper finds that macro factors,
including the expansion rate of GDP and the rate of interest, have considerable impacts on
banks' credit risk. Bank credit risk will decrease as GDP growth rate increases; however the
risk of bank credit will increase as interest rates rise. At the end, the paper provides several
suggestions for the development of risk management strategies, including the monitoring of
macroeconomic factors and the adjustment of credit policies under different economic
situations. The research results are intended to help researchers in related fields understand
current research findings and patterns of development in the research field, to give a
theoretical foundation and backing for their investigations, and to offer important guiding
significance for banks and relevant regulators to formulate risk management strategies.

Keywords: macroeconomic factors, credit risk, GDP growth rate, interest rate
10. The main aim of this study is to find a statistical association between credit
risk management (CRM) and profitability within Indian banks. Secondary data
from 38 Indian scheduled commercial banks was collected, for the time period
from 2005-2019 and examined using a panel data regression. For the purpose
of this study, return on assets (ROA) is considered a dependent variable and an
indicator of profitability, while the credit to deposit ratio (CDR), net interest
margin (NIM), operating profits to total assets (OPA), capital adequacy ratio
(CAR), provision coverage ratio (PCR) and net non- performing assets to net
advances (NNPA) are considered the determinants of CRM and classified as
independent variables. The statistical finding indicates that the
CDR, OPA and CAR are all positively related to the profit rate (ROA) while
NIM, NNPA and PCR all found to be negatively related to the profit rate
(ROA) and statistically show a significant association except PCR.
 Bibliography
1)”Credit Risk Management Practices of Indian Banking Industry: An Empirical Study” -
Bezawada Brahmana, International Journal of Economics and Financial Issues, 2022,
12(2), 67-71.
2)”Credit Risk and its Management in the Banks”-By Adelakun Oyetola1, Madugba
Joseph2, Oladipo Adenike3Adeola Omolara4 and Adegbile Godwin. Journal of
International Money, Banking and Finance Vol. 4, No. 1, 2023, pp. 23-32
3)”THE IMPACT OF CREDIT RISK AND DEBT COVERAGE ON PROFITABILITY
OF BANKS: A COMPARATIVE STUDY ON INDIAN PUBLIC & PRIVATE SECTOR
BANKS “by Shahin Singling Naveen,Ajitav Acharya and Neha Gupta. IITM Journal of
Business Studies, volume 11 issue 1
4)”Credit Risk Management in Indian Banking Sector: Issues and Challenges” by Kajal
Chandra Debnath,Kallal Banerjee. Swami Vivekananda UniversityBarasat,
Barrackpore, West Bengal, India
5)”Credit risk management and its impact on performance of commercial banks: With
reference to Nepal” by Punam Khanal1, Pitambar Sapkota. International Journal of
Finance and Commerce,2023, Volume 5, Issue 1, 2023, Page No. 68-74.
6)”A Comprehensive Study Of Indian Commercial Banks On Maturity Of Credit Risk
Management Capability” by Dr. Anjali Chaudhary, 2Dr. Mohd. Faishal
Mallick1,International Journal of Innovative Research & Growth ,Volume-4 Issue-1
November-2016

7)” INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY EDUCATIONAL

RESEARCH BANKERS' OPINION ON THE DETERMINANTS OF CREDIT RISK IN
INDIAN COMMERCIAL BANK DURING COVID-19” by, Prasanth Selvam
Sudhamathi Premnath International journal of multidisciplinary educational research,
vol:10,issue:1(7) jan:2021

8) “A Study on Impact of Credit Risk Management on the Profitability of Indian Banks”.

Article in International Journal of Management and Sustainability, by, Vijay Kumar Jain
July 2022. International Journal of Management and Sustainability2022, Vol. 11, No. 3, pp.
103-114.

9) “Impact of Credit Risk Indicators on Performance of Indian Private Sector Banks in the
Post Financial Crisis Period.” Article in Journal of Shanghai Jiaotong University (Science) ·
July 2021. By: Dr. M jegadeeshwaran, M.bashuvaraj.

10)” The Impact of Macroeconomic Factors on Bank Credit Risk” by: Yichang Chen
1
Faculty of Business and Management, Beijing Normal University-Hong Kong Baptist
University United International College, Zhuhai, Guangdong, 519087, China