02 / SELECTED WORK PROJECT
TJSB SAHAKARI BANK
Understanding and evaluating the bank's credit-risk and financial framework — from loan exposure and NPAs to capital adequacy and risk controls.
The problem
Credit risk is connected to multiple aspects of a banking business — from loan exposure and NPAs to interest income, capital adequacy and risk controls.
The challenge was to bring these interconnected factors together into a structured view of the bank's credit-risk and financial position.
What we did
We examined the bank's credit-risk framework, loan portfolio, financial indicators, capital position and risk-management structure to understand how these elements interact.
The business
TJSB Sahakari Bank Ltd. began operations in 1972 and developed from its first branch in Thane into a cooperative banking network across several Indian states. The work considered its emphasis on customer service, community engagement, financial inclusion and technology adoption.
What we delivered
Risk system
Credit risk policy
The bank's framework includes structured credit appraisal, separation of origination, evaluation and approval, exposure ceilings, collateral evaluation, ongoing monitoring and policy review.
Data from the project
Figures below are taken from the project material and presented for financial context.
The project examined short-term, medium-term and long-term loan classification across FY 2019–20 to 2023–24. Exact segment values are not reproduced here where not provided as discrete chartable series in the source material.
Interest generated from loans (₹ lakh).
Gross non-performing assets (₹ lakh).
CRAR over the reported period.
Capital structure · 2024
Project methodology
As part of the project methodology, we examined the relationship between Gross NPAs and Interest Earned.
H₀: There is no significant relationship between credit risk management and financial performance.
H₁: There is a significant relationship.
The observed negative correlation was not statistically significant at the conventional 0.05 level. There was not sufficient evidence to reject the null hypothesis based on the five-year dataset. The project material notes that limited sample size and other factors may influence interest income.
Key insight
The project brought multiple financial and risk indicators together to provide a clearer view of the relationship between credit risk and financial performance.
The work identified a layered approach involving credit approval, exposure controls, monitoring and mitigation.
The analysis showed CRAR increasing to 17.57% in 2023–2024.
The methodology shows that financial relationships cannot always be established from a small dataset alone.