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Credit Risk Management in State Bank Of India


KLE’s Institute of Management Studies and Research, Hubli


Credit Risk Management in State Bank Of India


“Credit Risk Management in State Bank Of India”

Credit risk is defined as the potential that a bank borrower or counterparty will fail to meet its obligations in accordance with agreed terms, or in other words it is defined as the risk that a firm’s customer 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 risks 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 consequence, borrowing exposes the firm owners to the risk that firm will be unable to pay its debt and thus be forced to bankruptcy.

The project helps in understanding the clear meaning of credit Risk Management In State Bank Of India. It explains about the credit risk scoring and Rating of the Bank. And also Study of comparative study of Credit Policy with that of its competitor helps in understanding the fair credit policy of the Bank and Credit Recovery management of the Banks and also its key competitors.

KLE’s Institute of Management Studies and Research, Hubli


Credit Risk Management in State Bank Of India

OBJECTIVES OF PROJECT 1. To Study the complete structure and history of State Bank Of India. 2. To know the different methods available for credit Rating and understanding the credit rating procedure used in State Bank Of India. 3. To gain insights into the credit risk management activities of the State Bank Of India. 4. To know the RBI Guidelines regarding credit rating and risk analysis. 5. Studying the credit policy adopted Comparative analyses of Public sector and private sector. METHODOLOGY:

To fulfill the objectives of my study, I have taken both into considerations viz primary & secondary data.

Primary data: Primary data has been collected through personal interview by direct contact method. The method which was adopted to collect the information is ‘Personal Interview’ method. Personal interview and discussion was made with manager and other personnel in the organization for this purpose.

Secondary data: The data is collected from the Magazines, Annual reports, Internet, Text books.

KLE’s Institute of Management Studies and Research, Hubli


Credit Risk Management in State Bank Of India The various sources that were used for the collection of secondary data are o Internal files & materials o Websites – Various sites like www. sharekhan.com www.indiainfoline.com www.sbi.co.in www.investopedia.com www..wikepedia.com and other site

• Project findings reveal that SBI is sanctioning less Credit to agriculture, as compared with its key competitor’s viz., Canara Bank, Corporation Bank, Syndicate Bank • Recovery of Credit: SBI recovery of Credit during the year 2006 is 62.4% Compared to other Banks SBI ‘s recovery policy is very good, hence this reduces NPA

• Total Advances: As compared total advances of SBI is increased year by year.

State Bank Of India is granting credit in all sectors in an Equated Monthly Installments so that any body can borrow money easily

Project findings reveal that State Bank Of India sanctioning more loans as compared to other Banks.

is lending more credit or

State bank Of India is expanding its Credit in the following focus areas: 1. 2. 3. 4. 5. 6. SBI Term Deposits SBI Recurring Deposits SBI Housing Loan SBI Car Loan SBI Educational Loan SBI Personal Loan …etc

KLE’s Institute of Management Studies and Research, Hubli


Credit Risk Management in State Bank Of India • In case of indirect agriculture advances, SBI is granting 3.1%...
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