CLIENT COMPANIES’ PERCEPTION TOWARDS CREDIT RISK OF PRIVATE SECTOR BANKS WITH REFERENCE TO ICICI, HDFC, AXIS BANK, IDBI, AND YES BANK

Keywords: Private Sector Banks, Credit Risk, Customers Perception, Profitability.

Abstract

The banking sector at present is facing many issues; one among them is credit risk. A Credit risk is termed as an estimate or forecast of the default of a borrower failing to recover his interest amount or borrowed amount. Currently, the banker or the lender is at risk of recovering the interest amount and principal amount, increasing their recovery costs. The present study makes an attempt to know the awareness of customers towards credit risk of private sector banks. The research objective is to analyze the significant association between Client Company’s perceptions with a view to credit risk. The study explains the major variation between client company’s perspectives towards Indian private sector. The study explains about the impact of credit risk on banks profitability. The present study helps banks to prevail over the problem of credit risk. The study analysis the objectives of research, hypothesis formulated, research methodology, findings and conclusions are discussed. The secondary sources for the study are through the websites of banks, Journals and client company’s websites. Primary data has been gathered from 285 client companies using convenience random sampling technique from private sector banks.

JEL Classification Codes: H32, Z33, E32, D21, C12, G21.

Author Biographies

Sunitha, G, KLEF (Deemed to be University), India

PhD Research Scholar, Department of Business Management, KLEF (Deemed to be University), India

Venu Madhav, V, KLEF (Deemed to be University), India

Associate Professor, Department of Business Management, KLEF (Deemed to be University), India

References

Sandada, M., & Kanhukamwe, A. (2016). An analysis of the factors leading to rising credit risk in the Zimbabwe banking sector, 12(1), 80-94

Yüksel, S., Mukhtarov, S., Mammadov, E., & Özsarı, M. (2018). Determinants of profitability in the banking sector: an analysis of post-soviet countries. Economies, 6(3), 41. https://doi.org/10.3390/economies6030041

Zergaw, F. (2019). Factors affecting credit risk management practices, the case of selected private commercial banks in Ethiopia, International journal of advanced research, 7(1), 811-849. http://dx.doi.org/10.21474/IJAR01/8392

Zheng, C., Sarker, N., & Nahar, S. (2018). Factors affecting bank credit risk: An empirical insight. Journal of Applied Finance and Banking, 8(2), 45-67.
Published
2022-01-15
How to Cite
G, S., & V, V. M. (2022). CLIENT COMPANIES’ PERCEPTION TOWARDS CREDIT RISK OF PRIVATE SECTOR BANKS WITH REFERENCE TO ICICI, HDFC, AXIS BANK, IDBI, AND YES BANK. Indian Journal of Finance and Banking, 9(1), 10-18. https://doi.org/10.46281/ijfb.v9i1.1545
Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper