Credit Risk Management in Indian Banking Industry- Evaluation of Crisis in Co-operative Banking Sector
Remesh KK, Dr. Umesh U
Banking sector has witnessed dynamic changes in institutional development and innovation. There are some risks which create hindrance on the development of banking sector Risk is an integral part of banking business as it handle with loans and advances for different sections of economy. The banks face the problem of significant rise in Nonperforming Assets. This problem creates serious impact relevant with regard to survival of Indian banking sector. Credit risk arise when the bank is not able to control the loss due to non recovery of its credit. Reserve bank of India issues some guidelines and to manage the alarming situation of NPA tactically. The banks are expected to follow uniform procedure for managing the stressed assets. In India the cooperative banking sector play an important role in enhancing the credit facilities to the rural mass. The co-operative banking sector tries to manage the problem of NPA through the implementation of rules and regulations of the financial authorities concerned. At the same time they adopt some strategies of their own to control the quantum of stressed assets. There are some problems with regard to NPA management in cooperative banking sector. A realistic approach towards proper management of Nonperforming Assets facilitates prompt recovery of amount due from the borrowers. This paper tries to study the problems persists in the area of NPA management in cooperative banking sector and the measures adopted to control the present situation.