Credit Risk Classification Using Discriminant Analysis for Punjab National Bank Customers

The way investors evaluate credit risk must change as India’s financial markets grow more dynamic and the country’s economy continues to change and diversify. Credit rating agencies’ ratings are a reliable source of information and a conventional indicator of credit risk. Assessing credit risk usually entails speaking with management teams and examining the company’s financial data. A purposeful consultation approach forms the basis of the ratings process, which is intended to provide a long-term credit assessment. Understanding the Credit Risk Associated with PNB Customer Classification is the foundation of this study. The study was conducted among 354 PNB customers falling under SEC A1 & A2 category households in the region of Thane. The study aids the bank to take an informed decision on classifying the group of customers with regards to their credit risk.