CREDIT RISK MODELS IN COOPERATIVE BANKS AT BANDHAN BANK

Abstract

This research evaluates cooperative bank credit risk models, focusing on Bandhan Bank. Financial institutions, especially cooperatives, worry about credit risk—the loss that may result from a borrower's failure to meet financial obligations. The study examines credit risk assessment models including PD, LGD, and EAD to preserve financial stability and manage nonperforming assets. Direct data from Bandhan Bank's lending operations and secondary data from financial reports and scholarly literature are used to assess existing credit risk management practices' pros and cons. Bandhan Bank and other cooperative banks are using data-driven, technology-based solutions to improve credit assessments and minimize default rates, even while standard risk appraisal approaches are structured. Research supports this. This research suggests ways to improve credit risk modeling for sustainable development and integrate international risk management practices into cooperative banking.