Risk management strategies in Indian public and private sector banks: A comparative study between SBI and HDFC bank

This study conducts a comparative analysis of risk management strategies employed by the State Bank of India (SBI) and HDFC Bank, which represent the public and private banking sectors in India, respectively. This research examines key risk indicators, including credit risk, capital adequacy, operational efficiency, and provisioning strategies, using secondary data from financial reports and regulatory publications spanning the period from 2015-16 to 2024-25. This study adopts a descriptive and analytical methodology to evaluate disparities in risk management practices and their impact on financial stability and performance. The findings reveal that HDFC Bank consistently outperformed SBI in terms of asset quality, capital adequacy, and profitability, reflecting more effective risk management strategies. However, SBI demonstrated a significant improvement in reducing non-performing assets and enhancing its provision coverage ratio, indicating a strengthening of its risk management framework. This study highlights the evolving nature of risk management in the Indian banking sector, with both public and private banks adapting their strategies to enhance financial resilience amid dynamic market conditions. The insights derived from this comparative analysis provide crucial information for policymakers and stakeholders to devise strategies to foster a stable and efficient banking environment. This study contributes to the literature on banking in emerging markets and underscores the critical importance of robust risk management practices in maintaining bank health and customer trust.