Risk and Credit Management Strategies in Indian Banking: A Case Study of HDFC Bank and SBI

Abstract

This study presents a comparative analysis of the risk management and credit management strategies of two major Indian banks: HDFC Bank and State Bank of India (SBI). HDFC Bank, a leading private sector bank, and SBI, the largest public sector bank in India, offer contrasting perspectives on managing financial risks and credit. The research utilizes a range of quantitative and qualitative methods, including financial ratio analysis, loan portfolio composition, and capital adequacy metrics, to evaluate and compare the effectiveness of their risk management practices. Key findings reveal that HDFC Bank demonstrates superior financial stability with lower NonPerforming Asset (NPA) ratios, higher capital adequacy ratios, and better profitability metrics compared to SBI. The analysis also
highlights differences in their loan portfolios and provisioning practices, reflecting their distinct operational focuses and risk management approaches. This comparative study provides valuable
insights into how different banking structures and strategies impact financial performance and risk management