A COMPARATIVE STUDY OF CREDIT RISK MANAGEMENT IN PUBLIC AND PRIVATE SECTOR BANK (WITH SPECIAL REFERENCE TO MUDRA YOJANA)

This study assesses the financial performance and credit risk management practices of select private sector banks in India between 2020 and 2024. In light of increasing competition and dynamic regulatory frameworks, it explores the importance of profitability and risk control as fundamental measures of a bank’s success.The research focuses on five key banks: HDFC Bank, ICICI Bank, Karur Vysya Bank, Federal Bank, and Tamilnad Mercantile Bank. The study is entirely based on secondary data collected from annual reports, financial portals, and scholarly sources.To evaluate financial strength, various analytical tools such as ratio analysis, trend analysis, mean, standard deviation, and coefficient of variation were used. These methods helped assess the banks’ liquidity, profitability, and asset utilization over the study period.Additionally, linear trend forecasting was applied to estimate the future direction of important financial indicators. This enabled a deeper understanding of growth patterns and risk factors.The results reveal significant variation in financial performance among the selected banks. ICICI Bank and Karur Vysya Bank demonstrated comparatively higher stability and profitability, whereas others exhibited moderate outcomes.The findings underline the importance of robust credit risk monitoring and the adoption of advanced risk management tools for sustainable growth. The study concludes by offering practical suggestions to enhance the operational efficiency and financial health of private banks in India.