A COMPARATIVE STUDY OF RISK MANAGEMENT PRACTICES IN PUBLIC VS. PRIVATE SECTOR BANKS IN INDIA

Abstract

Risk management is a crucial function in ensuring the stability and sustainability of banks. The Indian banking sector, comprising public and private sector banks, faces multiple types of risks such as credit risk, market risk, operational risk, and liquidity risk. This study aims to compare the risk management practices adopted by public and private sector banks in India using secondary data from RBI reports, banks’ annual reports, and industry publications. The analysis indicates that private banks demonstrate higher adoption of advanced technological tools and proactive risk mitigation strategies, whereas public banks emphasize regulatory compliance and traditional risk management practices. The findings provide insights for policymakers and banking management to enhance risk frameworks and foster financial stability.