FINDING

The research study carried out at HDFC Bank under the topic ―CREDIT RISK
MANAGEMENT in banking- a study of HDFC bank‖ to fulfill the said motive turned out to
be useful in understanding the various policies and practices used by the bank to manage the
different types of risk that arise in banking
As per the above diagram (1) it show of risk management in hdfc bank in terms of credit is
50% i.e. very high as compare to others

As per the above diagram (2) the risk management in hdfc bank in terms of market risk is
40% i.e. very high as compare to others

As per the above diagram (3) the risk management in hdfc bank in terms of liquidity risk is
70% i.e. very high as compare to others

As per the above diagram (4) the risk management in hdfc bank in terms of operational risk
is 60% i.e. very high as compare to others.

As per the above diagram (5) the risk management in hdfc bank in terms interest risk of is
45% i.e. very high as compare to others.

As per the above diagram (6) the risk management in hdfc bank in terms of foreign exchange
bank is 10% i.e. very low as compare to others.

As per the above diagram (7) the risk management in hdfc bank in terms of other risk is 60%
i.e. very high as compare to others

As per the above diagram (8) the customer feels very secure while investing hdfc bank
80%i.e. very high

As per the above diagram(9) its show dealing with hdfc bank are daily basis is very high as
compare to weekly and monthly , others .

RECOMMENDATIONAND SUGGESTION

 The Bank should keep on revising its Credit Policy which will help Bank‗s
effort to correct the course of the policies
 The Chairman and Managing Director/Executive Director should make
modifications to the procedural guidelines required for implementation of the
Credit Policy as they may become necessary from time to time on account of
organizational needs.
 Banks has to grant the loans for the establishment of business at a moderate
rate of interest. Because of this, the people can repay the loan amount to
bank regularly and promptly.

Conclusion
 With the correct measure of the credit risk, its management will
become effective and efficient. This research work concentrates on
developing an approach to measure the credit risks associated with
various borrowers of a bank. For this the major assessment
parameters for the bank are taken as the predictor variables. There
are many approaches to developing credit risk model which have
been discussed already in interim report

 is difficult to say conclusively,

 which of the approaches has the best ability to predict default, each
having its pros and cons. The stock price-based model is
conceptually appealing, as there is an explicit theoretical foundation
of this model
 On the other hand, accounting-based statistical methods rely more on
statistical relationships rather than on any financial principle
.However, with the absence of any theoretical structure, accounting
based statistical approach which also forms the basis of my study can
act more flexibly by incorporating or excluding the explanatory
variables depending on their information content.
 It is more prudent to look at these two approaches as supplementing
each other by providing additional information, which the other
does not possess. The choice depends on the individual business
circumstances and portfolio specifics of each bank. Depending on
the circumstances, it may sometimes be prudent to use both types of
methodologies simultaneously to refine the credit decision system
of the bank.
  The availability of data is a major constraint for such studies and with the
availability of more accurate data such findings can be even more useful
for a bank. The credit risk modeling may indeed prove to result in better
internal risk management a t banking institutions. However, key hurdles,
principally concerning data limitations and model validation, must be
cleared before models may be used in the process of setting regulatory
capital requirements

 The project undertaken has helped a lot in gaining knowledge of the Credit
Policy and
 Credit Risk Management‖ in Nationalized Bank with special reference to
HDFC BANK

RECOMMENDATIONAND SUGGESTION
 The Bank should keep on revising its Credit Policy which will help Bank‗s effort to
correct the course of the policies
 The Chairman and Managing Director/Executive Director should make modifications to
the procedural guidelines required for implementation of the Credit Policy as they may
become necessary from time to time on account of organizational needs.
 Banks has to grant the loans for the establishment of business at a moderate rate of
interest. Because of this, the people can repay the loan amount to bank regularly and
promptly
 Bank should not issue entire amount of loan to agriculture sector at a time, itshould
release the loan in installments. If the climatic conditions are good thenthey have to
release remaining amount
 HDFC has to reduce the Interest Rate.
 HDFC has to entertain indirect sectors of agriculture so that it can have morenumber of
borrowers for the Bank.
