| SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES |
VOL. 12 |
NO. 2 |
PAPER 2 |
DOI: 10.5958/2321-2012.2016.00010.5 |
INTEGRATED RISK MANAGEMENT IN THE INDIAN BANKING SECTOR AND IMPACT OF CREDIT RISK MANAGEMENT ON THE BANKS’ PROFITABILITY
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| Ashok Kumar Pandey* and Chandan Dasgupta**
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| * Executive MBA Scholar, School of Business Management, NMIMS,
Mumbai, India
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| ** Professor [Finance Area], School of Business Management,
NMIMS, Mumbai, India.
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| The risk management processes at banks, need to be better integrated with their business and operating models. For this, risk management needs to be viewed as a key part of strategy and operations and go well beyond merely being a compliance exercise. Besides, there is a need to incorporate risk-based capital performance measures and stress testing more centrally into business decision-making processes. The purpose of this research is to investigate whether a relationship exists between credit risk management and profitability of scheduled commercial banks in India. In order to test our hypothesis, the multivariate regression was used. Findings indicate that there is a positive relationship between credit risk management and profitability of scheduled commercial banks. |
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