PROJECT

CREDIT RISK MANAGEMENT IN ICICI BANK

M.M.S ( FINANCE) DEGREE BY Miss ASHWINI SHRIRAM SAWANT DIVISION (A) ROLL NO (50)

UNDER GUIDENCE OF Prof. Mrinal Savyanavar

1. Introduction As a financial intermediary, ICICI Bank is exposed to risks that are particular to its lending and trading businesses and the environment within which it operates. ICICI Banks goal in risk management is to ensure that it understands, measures and monitors the various risks that arise and that the organization adheres strictly to the policies and procedures which are established to address these risks. ICICI lending operations are principally exposed to credit risk. In order to assess the credit risk associated with any financing proposal, ICICI Bank assesses a variety of risks relating to the borrower and the relevant industry. ICICI Bank has a scale of 10 ratings ranging from AAA to B and an additional default rating of D. Credit rating is a critical input for the credit approval process. This project would help us to understands In the bank's portfolio, losses stem from outside default due to inability or unwillingness of the customer. 2. Research Methodology SECTOR : These Sector is Bank and the player is ICICI under credit risk management
DATA COLLECTION :

The data collection i.e. the raw material input for the project has been collected keeping in mind the objectives of the project and accordingly relevant information has been found. The methodology used is a descriptive method of the Research. Following are the sources:
PRIMARY DATA

The data regarding CREDIT RISK MANAGEMENT was collected through primary data: Semi-structured interviews were conducted with MR. Vivek Pal, Manager RAPG personal loans of ICICI bank, Mr. Bilal Anwar, Credit Analyst of IDBI BANK LTD., and Mr. Shahji Jacob, Chief Manager of The FEDERAL BANK Limited. This was done to understand the current

practices and the style of functioning of the credit risk management departments of private banks.
SECONDARY DATA

The data had been collected by reading various books on Credit Risk Management, Bank Quest, Bank Weekly and relevant Websites (refer Bibliography). 2:1 Objective & Hypothesis Statement The objective would be to prove the following hypothesis true: Determination of objectives is the first step in the risk management function. The objective may be to protect profits, or to develop competitive advantage. 2.2 Importance of study ICICI Bank has a strong framework for the appraisal and execution of project finance transactions. ICICI Bank believes that this framework creates optimal risk identification, allocation and mitigation, and helps minimize residual risk. The project finance approval process begins with a detailed evaluation of technical, commercial, financial, marketing and management factors and the sponsor's financial strength and experience. 2:3 Benefits of study Rising global competition, increasing deregulation, introduction of innovative products and delivery channels have pushed risk management to the forefront of today's financial landscape. Ability to gauge the risks and take appropriate position will be the key to success.
3. SAMPLING METHOD

The Sampling Method was used to collect the data about the current practices followed by the private banks in India as far as credit risk management goes. Only Private Banks have been taken because the purpose of this project was to understand the in-depth knowledge on Private Banks practicing Credit risk management.

4. LIMITATIONS: Visiting all private sector banks was not possible. Banks have certain rules and regulations.