Appraisal of credit risk identification structure of selected public and private sector banks

The present study attempts to analyze the credit risk identification structure of selected public and private sector banks in India namely State Bank of India, Syndicate Bank, Punjab National Bank, Union Bank of India, Bank of Baroda, Andhra Bank, Oriental Bank of Commerce, IDBI, ICICI Bank, Axis Bank Limited and HDFC in the area of Haryana and Delhi (including NCR). The primary data is collected with the help of pre-tested structured questionnaire and analysed with the help of various statistical techniques such as frequency, percentage, mean and standard deviation. To validate the results, t-statistic and ANOVA technique has been used. The bank-wise ANOVA results of public sector banks show that there is a significant difference among the bankers’ viewpoint with regard to governance structure for identifying the credit risk and board/committee to review; whereas there is no significant difference among the bankers’ viewpoint with regard to the internal credit policy manual guidelines/rules and appropriate procedures and processes to implement the credit risk policies. On the other hand, there is also a significant difference among the viewpoint of respondents of private sector banks towards the governance structure for identifying the credit risk and internal credit policy manual guidelines/rules. whereas there is no significant difference among the viewpoint of respondents in private sector banks towards appropriate procedures and processes to implement the credit risk policies and board/committee to review and approve the bank's credit risk strategy. The results of t-test shows that the bankers’ viewpoint towards the governance structure for identifying the credit risk and board/committee to review and approve the bank's credit risk strategy; whereas there is no significant difference among the viewpoint of respondents of public and private sector banks towards internal credit policy manual guidelines/rules, appropriate procedures and processes to implement the credit risk policies.