A Study on Credit Risk Management in Home Loans at Bajaj Housing Finance Limited

Dr. K. Swapna Sri1 T. Anitha2 ,

1.       Associate Professor, CMR Institute of Technology, Hyderabad, Telangana, India.

Email ID: swapnasri@cmritonline.ac.in

2.       Student of MBA, CMR Institute of Technology, Hyderabad, Telangana, India.

Email ID: anithathanterpally@gmail.com

Abstract : This research looks at how Bajaj Housing Finance Limited handles credit risk in its house loan portfolio. Important variables that influence the risk of loan default are income level, credit score, employment stability, debt obligations, loan-to-value ratio, and repayment history, according to the study. The study investigates GNPA trends and assesses the association between credit risk and Assets Under Management (AUM) utilizing secondary data derived from regulatory publications and company reports. Despite a rise in GNPA during the COVID-19 period, the study indicates that robust asset quality was achieved in subsequent years thanks to successful credit assessment, monitoring, and recovery systems. According to the report, the company has grown its home loan business considerably while maintaining low default rates thanks to robust credit risk management procedures.

Key words : Credit Risk Management, Home loans, Non-Performing Assets, Credit Appraisal, Asset Under Management.