Table of Contents

Preface
Introduction
Short-term Credit by Commercial Banks
Long-term Credit by Commercial Banks
Non-Fund based Credit Exposure-Bank Guarantee
Non-Fund based Credit Exposure-Letters of Credit
Retail Credit Risk and Economic Welfare
Assessment of Credit Risk
Non-performing Assets
Credit Recovery and Legal Aspects of Credit Risk
Processes in Management of Credit Risk
Improving Credit Risk Management
RBI Regulation and Capital Adequacy
Appendices

About the Author

K. Vaidyanathan (Vaidya) is an expert in banking and financial services who specializes particularly in the management of credit and interest rate risks at financial institutions. An IIT-IIM alumnus, Vaidya acquired his expertise working with JPMorgan Chase Bank in Hong Kong, New York and Singapore and advising financial institutions and corporates in Asia-Pacific region on hedging and risk management. His wide area of financial expertise includes debt restructuring, acquisition financing, capital structure advisory, alternative investments, divestitures, mergers and acquisitions, especially in the Telecom, Media and Technology space.

Vaidya is a Post-Doctoral Fellow at Santa Clara University and a Visiting Faculty at the University of Connecticut (USA), IIM Calcutta and SP Jain’s Singapore, Dubai and Sydney campuses. He is also a Consultant with the International Finance Corporation, World Bank Group. He has regularly conducted executive training programmes at institutions such as the Indian Bank Association (IBA), Bombay Stock Exchange (BSE) Training Institute, the Fixed Income Money Market and Derivatives Association of India (FIMMDA), global banks such as Citibank, Credit Suisse, Deutsche Bank, JPMorgan Chase, Morgan Stanley, Nomura, UBS and Indian banks such as ICICI, IFCI, IDBI, SBI and SIDBI. His executive training programmes have been conducted at the world’s leading financial centres such as Hong Kong, London, Mumbai, New York, Singapore and Tokyo. His executive training programmes cover topics such as Credit Risk, Asset Liability Management, Debt Capital Markets, Credit Derivatives, Basel II and Risk Management. He is the author of Credit Derivatives and has published extensively in reputed international finance journals.

Vaidya holds a B.Tech. in Electrical Engineering from IIT, Kanpur, and an MBA from IIM, Ahmedabad. He is a Chartered Financial Analyst (CFA) from the CFA Institute, Charlottesville and a Financial Risk Manager (FRM) by the Global Association for Risk Professionals (GARP), New York. He is a PhD and a post-doctoral fellow from Santa Clara University. He is a regular columnist with the Financial Express (http://www.financialexpress. com/columnist/kvaidyanathan/1).

Reviews

This is the first book of its kind which has a thorough and comprehensive treatment of credit risk pertinent to the Indian Banking Sector. I recommend this book as a must read for all banking professionals in India.
*V.K. Sharma*

This book addresses a long-felt need for a complete handbook for credit risk management.
*N.S. Venkatesh*

I haven′t come across a reference book like this. It’s a useful contribution to the literature on Indian Banking.
*Anup Bagchi*

I would recommend it as a mandatory reading for all entry level bank professionals and as a reference book for senior bankers.
*Ashish Agarwal*

[The book] is a delightful addition to banking literature, not just in India but globally, because the latest credit risk management techniques discussed in the book are universal, though applied in the Indian context...if you are associated with the credit industry, you’ll find innumerable strategies to deal with real-life challenges in the banking/credit industry, which is priceless. If you are looking for one stop resource to understand all facets of credit risk management, you’ll find the book extremely valuable, packed with state-of-the-art credit risk management tools...the author does an exceptionally thorough job in explaining key concepts...deals with both fund-based and non-fund-based literature in comprehensive detail...[it] is better than any other book on credit-risk globally...unlike some other books which produce RBI guidelines verbatim, the author chooses to discuss them and explain them using examples... an extremely useful, pertinent and timely contribution to the banking and credit industry literature.
*The Financial Express*