The Connection Between Indian Commercial Banks' Financial Performance And Risk Management For Credit Techniques

The control of risk to credit has emerged as an essential focus concerning financial organizations due to the uncertainties inherent in the financial services sector. The volatility of the banking industry necessitates strong risk mitigation frameworks. This study evaluates "Risk management for credit and its effect on financial performance in Indian Commercial Banks." The primary objective of this research is to enhance knowledge of how return on assets (ROA) is affected by Risk management for credit. Risk to credit remains a critical concern for financial institutions as failure by a trade partner to fulfil commitments on time may significantly affect financial stability. This study aims to explore the mechanisms employed by banks to manage their risk to credit exposure. The initial section provides a background on credit risk, while the latter part conducts a comprehensive review of literature concerning banking, risk to credit evaluation models, and management frameworks. A quantitative research design is applied through a cross-sectional survey approach. The research analyses primary data using descriptive statistical methods and evaluates hypotheses through regression models. Findings suggest that banks implementing efficient Policies to manage risk to credit typically have significantly higher profits on assets and lower loan default rates.