An Assessment of the Credit Hazards Facing Indian Commercial Banks

Abstract

The banking sector is an extremely important component of the Indian economy. When conducting banking operations, banks in India are facing several challenges due to the fast expansion of the banking sector over the last few years. One of these risks, credit risk, is affecting the banks’ overall financial health. As a result of ineffective methods of credit risk management, financial institutions are experiencing enormous losses. The purpose of this paper is to investigate the potential causes of non-performing assets (NPAs) and credit risks in Indian banks, as well as the different types of credit risk, analyze any potential deficiencies in lending practices, and investigate any potential solutions to the problem of credit risk in Indian commercial banks.