authors
V Anitha and D Divya Dharshini

abstract
This study looks at the importance of risk management in the banking industry, with a special emphasis on the Indian public sector. It draws attention to the ever-changing operating environment and the growing intricacy of bank operations, both of which call for strong risk management procedures. Credit risk, market risk, and operational risk are all emphasized in the study's classification of hazards into financial and non-financial categories. Despite modest increases in liquidity ratios in recent years, it talks about banks' precarious liquidity positions and Ratio analysis for top 3 public sector banks emphasizes the significance of efficient cash flow management. From 2019–20 to 2023–24, the study examines the strategies and practices used by Indian scheduled commercial banks to control market and liquidity risks. According to a comparative investigation, PSBs risk management practices are not significantly different from one another. The results indicate that, especially in an increasingly liberalized economic climate, successful risk management is critical to the long-term viability of banking institutions. The study comes to the conclusion that in order for banks to prosper in a turbulent financial environment, they must implement thorough risk control procedures. Diversification of the credit portfolio is particularly important in order to reduce concentration credit risk. It is also advised that specialist risk management committees be established in order to improve strategic decision-making and oversight in risk management procedures.