Published Paper Details:

In order to achieve financial soundness banks should manage the risk effectively. Credit risk is banker's loss arising from a borrower who fails to keep up his promise of repayment well in time. The bank's profitability is impacted by the level of loans and advances, non-performing loans and deposits. In this 'market driven economy' globalization trends coupled with intensive competition within the country and outside the country are making the banks to frame suitable risk management strategies. Bank frauds, failures, economic sluggishness, global financial crisis impactness, large sized money transfer from one to another country, taking shelter in other countries and possible legal delays etc., are some of the examples where in the commercial banks should be careful and take extra care to measure the quantum of associate risks. Credit risk causes economic downturn as banks fail due to default risk from customers, which has had a negative impact on the economic development of many nations (Reinhart &Regoff, 2008). In 2008 at global level credit crises emerged due to mass issuing of sub-prime mortgages to individuals in the US leading to default which caused problems around the world. Subprime mortgages and other loans with less restrictions can generate remarkable losses including corporate failures and bankruptcy of financial institutions (Brown et al. 2014). The present research paper reveals data that socio-economic characteristics are impacting on CRM, respondents are well aware of objectives behind CRM. Further, the respondents clearly expressed about the causes of risk management and also ranked the factors impacting credit risk mitigation. The study analyzed the data with the help of quantitative techniques like chi-square, contingency co-efficient, ANOVA, Kendall's concordance and Garrette ranking technique.