Credit Risk Management Practices: A Comparative Study of State Bank of India and Punjab National Bank
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Date
2013
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Publisher
Punjab Agricultural University, Ludhiana
Abstract
The present research was conducted to study the framework and practices adopted
with regard to the Credit Risk Management by State Bank of India and Punjab National Bank
in Ludhiana. For this purpose, secondary data was collected through websites, annual reports
and journals. Also, a primary survey was conducted. A sample of 60 respondents was selected
from Ludhiana City. The results of the survey was brought out irrespective of the size of
bank. The data were analyzed with statistical tools like mean score, standard deviation, chisquare,
weighted mean and t-value. The study revealed that majority of respondents of PNB
and SBI were not much aware of the credit risk framework and the respective practices to be
followed. Also, moderate number of respondents knew about the various practices and
instruments been adopted. The results show that the authority for approval of Credit Risk
vests with ‘Board of Directors’ to the tune of 17 per cent and 100 per cent in case of SBI and
PNB, respectively. For Credit Risk Management, both the banks were found performing
several activities like industry study, periodic credit calls, periodic plant visits, developing
MIS, risk scoring and annual review of accounts.
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Keywords
economics, biological phenomena, resins, productivity, technological changes, exhibitions, developmental stages, marketing, biological development, selection