credit risk management in vijaya bank

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Topics: Risk management
CREDIT RISK MANAGEMENT PRACTICES IN VIJAYA BANK

Afsha Naheed(1301004)
Divya Janaswamy(1301019)
Lahari Vasala(1301034)
Nikhitha(1301049)

INTRODUCTION
Indian economy today is in the process of becoming a world class economy. The Indian banking industry is making great advancement in terms of quality, quantity, expansion and diversification and is keeping up with the updated technology, ability; stability and thrust of a financial system, where the commercial banks play a very important role emphasize the need of a strong effective control system with extra concern for the risk involved in the business. In the fast growing world, banks are facing many types of risks among which credit risk stands at the top of the list. One bank was chosen to understand the practices followed by them in depth. Vijaya bank is one of the public sector banks and is supposed to be in line with RBI guidelines. This helped in understanding the credit risk management practices followed by the bank in a better way.
GLOBAL SCENARIO
The period 2007-2012 underwent financial crisis, also known as the Global Financial Crisis (GFC), or the “Great Recession”, is considered by many economists to be the worst financial crisis since the great depression of the 1930‟s. This resulted in the collapse of large financial institutions, the bailout of banks by national Governments, and downturns in stock markets around the world. Even the housing market suffered, resulting in evictions, foreclosures and prolonged unemployment contributing to the failure of key businesses, declines in consumer wealth estimated in trillions of US dollars, and a significant decline in the economic activity, leading to a severe 2008-2012 global recessions. The bursting of the U.S. housing bubble, which peaked in 2007, caused the values of securities tied to U.S. real estate pricing to plummet, damaging financial institutions globally. The financial crisis was triggered by a complex interplay of

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