In everyday life, risk is about undesired unpleasant, and at times disastrous prospective events associated with human action or inaction. Banking is becoming complex, compounded by exploding technological capabilities expanding product offerings and deregulation of competition. In other words, banking is a business of risk. For this reason, efficient risk management is extremely required. The Indian banking system is better prepared to adopt Basel II than it was for Basel I. The Basel II Accord had led the banks to new prudential norms like capital adequacy and identification of bad debts. Recently many banks have appointed senior managers to oversee a formal risk management function. The effective risk management lies with the ability to gauge the risks and to take appropriate measures. In the light of this, an analysis was carried out to highlight the NPAs position of SBI and associates and also capital adequacy ratio after the implementation of Basel II Accord to focus on the risk management practices in State Bank of India (SBI) and associates for the period of six years from 2015-16 to 2019-21. Hence an efficient risk management system is the need of time.

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Keywords: Risk Management, Credit Risk, Prudential Norms, Bad Debts, Credit Portfolios, Basel.