A STUDY ON CREDIT RISK MANAGEMENT AT CANARA BANK,HYDERABAD

Uncertainty and the potential for loss, which can occur in any business transaction at any time or location, are major factors in risk.If a borrower is unable to fulfill the terms of a loan arrangement with the bank or otherwise carry out as agreed, credit risk is the possible loss of assets or income.The credit risk hypothesis states that the lender bears a significant amount of risk, including the possibility of losing principal and interest.For instance, an insolvent bank may not be able to return a depositor's funds, which could result in a complete or partial interruption loss.Investigating the concept of credit risk as it relates to banks and understanding how it may be managed to avoid bank failure were the main objectives of the study.To achieve the primary goal, data was collected from original research articles that examined the relationship between credit risk and the performance of commercial banks.Effective solution would be employed to reduce the impact of credit risk on banks, since according to the assessment, poorly managed credit risk makes banks more vulnerable.