Seybold Report ISSN: 1533-9211
Bharti khurana
PhD Researcher, VMV Com , JMT Arts and JJP Sci. College Nagpur
Dr. Manish B Vyas.
Research supervisor, VMV Com , JMT Arts and JJP Sci. College Nagpur
Vol 17, No 09 ( 2022 ) | DOI: 10.5281/zenodo.7152699 | Licensing: CC 4.0 | Pg no:1414-1420 | Published on: 30-09-2022
Abstract
Risk reduces returns and equity. The banks whether commercial or co-operative, are subject to several risks predominantly being market risk, interest risk, credit risk, operational risk, etc. Among them, credit risks predominate in the co-operative banks due to certain operational and legislative limitations. Hence, at attempt is made in this present paper to evaluate the impact of credit risk reflected in the size of non-performing assets, the only on their capital. With this end in view, the sensitivity analysis was undertaken signifying the change in the non-performing assets on the change in the capital to risk adjusted assets. The papers concludes that one per cent increase in the NNPA would affect the capital to an extent of roughly 0.35 per cent and 0.29 per cent respectively; and that sensitivity of capital to NNPA had never been volatile as revealed from the standard deviation of sensitivity.
Keywords:
Credit dispensation, Net non-performing assets; delinquency, credit risk, sensitivity;