Short-Term Gains, Long-Term Pain: The Unintended Consequences of Prioritizing Profit Efficiency in Bank-Customer Relationship

DOI: https://doie.org/10.0608/Jbse.2024584468

Dr. Lata Rani , Prof. Sunil Kumar , Prof. Ritesh Gupta , Kamna Chopra

Keywords:

Indian Banking Sector, Non-Performing Assets (NPAs), Financial Stability, Risk Management, Cyber Security, Financial Inclusion

Abstract:

Despite its crucial role in driving economic growth, the Indian banking sector faces several challenges, including rising Non-Performing Assets (NPAs), escalating cyber security threats, and limited financial inclusion. This raises concerns about the sector's financial stability. This research explores these key issues by analyzing risk factors like credit, operational, market, and fraud/cybersecurity risks. By examining bank practices and analyzing data, the research aims to identify factors contributing to bank failures and the effectiveness of risk management strategies. The findings highlight challenges in managing various risks and the importance of robust risk management for financial stability. The research ultimately provides recommendations for developing effective risk management strategies and suggests areas for further exploration, offering valuable insights for banks, regulators, and policymakers to enhance risk management, improve regulations, and strengthen cybersecurity, leading to a more secure and stable banking environment.

PDF