A PROJECT REPORT ON CREDIT RISK MANAGEMENTAT PUNJAB NATIONAL BANK

Abstract

Credit risk management is a crucial function in banking, focusing on identifying, assessing, and mitigating the risk of financial loss due to borrower default. This study examines credit risk management practices at Punjab National Bank (PNB), one of India's leading public sector banks, with a focus on strategies to maintain asset quality and ensure financial stability. The research analyzes PNB's credit appraisal procedures, loan monitoring mechanisms, risk grading systems, and recovery practices. Emphasis is placed on evaluating non-performing assets (NPAs), provisioning norms, and compliance with regulatory guidelines set by the Reserve Bank of India (RBI). Data from PNB's annual reports and financial statements indicate that effective credit risk management enhances profitability, protects capital, and sustains public confidence in the banking system