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PROJECT

CREDIT RISK MANAGEMENT IN ICICI BANK

M.M.S ( FINANCE) DEGREE

BY

Miss ASHWINI SHRIRAM SAWANT

DIVISION (A) ROLL NO (50)

UNDER GUIDENCE OF

Prof. Mrinal Savyanavar

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1. IntroductionAs a financial intermediary, ICICI Bank is exposed to risks that are particular to

its lending and trading businesses and the environment within which it operates.

ICICI Banks goal in risk management is to ensure that it understands, measures

and monitors the various risks that arise and that the organization adheres

strictly to the policies and procedures which are established to address these

risks.

ICICI lending operations are principally exposed to credit risk. In order to

assess the credit risk associated with any financing proposal, ICICI Bank

assesses a variety of risks relating to the borrower and the relevant industry.

ICICI Bank has a scale of 10 ratings ranging from AAA to B and an additional

default rating of D. Credit rating is a critical input for the credit approval

process.This project would help us to understands In the bank's portfolio, losses stem

from outside default due to inability or unwillingness of the customer.

2. Research MethodologySECTOR : These Sector is Bank and the player is ICICI under credit risk

management

DATA COLLECTION :

The data collection i.e. the raw material input for the project has

been collected keeping in mind the objectives of the project and

accordingly relevant information has been found. The methodology used

is a descriptive method of the Research. Following are the sources:

PRIMARY DATA

The data regarding CREDIT RISK MANAGEMENT was collectedthrough primary data:

Semi-structured interviews were conducted with MR. Vivek Pal,

Manager RAPG personal loans of ICICI bank, Mr. Bilal Anwar, Credit

Analyst of IDBI BANK LTD., and Mr. Shahji Jacob, Chief Manager of

The FEDERAL BANK Limited. This was done to understand the current

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practices and the style of functioning of the credit risk management

departments of private banks.

SECONDARY DATA

The data had been collected by reading various books on CreditRisk Management, Bank Quest, Bank Weekly and relevant Websites

(refer Bibliography).

2:1 Objective & Hypothesis Statement

The objective would beto provethe followinghypothesistrue:Determination

of objectives is the first step in the risk management function. The objective

may be to protect profits, or to develop competitive advantage.

2.2 Importance of study

ICICI Bank has a strong framework for the appraisal and execution of project

finance transactions. ICICI Bank believes that this framework creates optimal

risk identification, allocation and mitigation, and helps minimize residual risk.

The project finance approval process begins with a detailed evaluation of

technical, commercial, financial, marketing and management factors and thesponsor's financial strength and experience.

2:3 Benefits of study

Rising global competition, increasing deregulation, introduction of innovative

products and delivery channels have pushed risk management to the forefront of

today's financial landscape. Ability to gauge the risks and take appropriate

position will be the key to success.

3. SAMPLING METHODThe Sampling Method was used to collect the data about

the current practices followed by the private banks in India as far as

credit risk management goes.

Only Private Banks have been taken because the purpose of

this project was to understand the in-depth knowledge on Private Banks

practicing Credit risk management.

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4. LIMITATIONS: Visiting all private sector banks was not possible.

Banks have certain rules and regulations.