WEB REFERENCES
1. www.managementstudies.com
2. www.jstor.com
3. www.gscbf.com
4. www.rbi.org.in
5. www.gujfed.com
6. www.financetrain.com
176
APPENDIX – 1- QUESTIONNAIRE
INTERVIEW SCHEDULE
Dharmendra P. Patel
Research scholar,
Kadi Sarva Vishwavidyalaya,
Sector-15, Gandhinagar- 382015.
Contact: +9194284 82182
Dear Sir/Madam,
Greetings!!!
I am currently pursuing Ph. D. in commerce. Title of my research work is
“Risk Management: A study of selected urban cooperative Banks in Gujarat”.
The purpose of my study is to investigate in risk management practices by selected
Urban Cooperative Banks of Gujarat State. The bank and you are a part of
representative sample of 40 urban cooperative banks of Gujarat. The success of my
research work is depended upon your true and fair answers. So, it is my humble
request to take some time to fill this Interview Schedule. I humbly recognize the
value of your time and sincerely appreciate your efforts on my behalf. All data
provided by you will not be used by me anywhere except in my research work.
Thanking You.
Dharmendra Patel
(Research Scholar,
Kadi Sarva Vishwavidyalaya,
Sector-15, Gandhinagar- 382015.)
177
GENERAL INFORMATION

Name of the Bank

Head office Address
Pin Code:

Contact No. (Land Line)

E mill Id

Website

Name of General Manager

Contact No. (Gen. Manager)

No. of Branches

Establishment Year

Whether Schedule or NonSchedule Bank

Name of the Respondent

Designation of Respondent

Contact No. of Respondent

No of years of experience in
the banking industry
178
1. How many person(s) or departments are there to look after Risk Management?
Person(s) _________. Department___________.
2. Which of the following risks does your bank experience? Please mark '√' the degree of risk:
Rate the risk experience by
UCB
Very High
High
Medium
Low
Very Low
Market risk
Credit risk
Interest rate risk
Liquidity risk
Investment risk
Reputation risk
Capital Risk
Legal Risk
Operational Risk
Forex Risk
Political Risk
If any other, please specify
3. How the risk are identify? (Please tick '√')
a) Comparison with the standard provided by RBI__________.
b) Own methods, techniques or calculation to determine such risks__________.
c) Outsiders/agency__________.
4. Do you use any techniques or methods to measure the risk? (Please tick '√')
a) Capital to Risk Asset Ratio (CRAR)
__________.
b) SWOT Analysis (Strength-Weakness-Opportunities-Threats)
__________.
c) Key Ratio Analysis
__________.
d) ROE Analysis (Return on equity)
__________.
e) CAMEL Rating
__________.
179
f) Statement of structural Liquidity
__________.
g) Maturity Ladder/Maturity Profile
__________.
h) Statement of Interest rate Sensitivity
__________.
i) ALM system (Asset-Liability Management)
1. Gap method
__________.
2. Duration Gap Method
__________.
3. Simulation method
__________.
4. Credit scoring method
__________.
5. Value at Risk (VAR)
__________.
Any other, please specify
a) ______________________________________________________________.
b) ______________________________________________________________.
c) ______________________________________________________________.
5. Which of the below models are employed by the banks to identify credit worthiness of
customer.
(Please tick '√')
Credit Portfolio view
Scenario analysis
Equity Based Approach
Rating based approach
Stress testing
Sensitivity analysis
Others
\
180
6. Does the risk management concept increase the consumer satisfaction?
Yes/No
_________.
If yes, which are the factors concerned with consumer satisfaction,
7. In which securities your banks prefer to invest more? Give Rank as per your priority.
Investment Source
Give Rank as
per priority
Government Securities
Private Banks
Nationalize Banks
Stock Market
Agriculture Loans
Industry Loans
Fixed Deposits
If any other, please specify
181
8. Steps to be taken by UCBs to minimize the following risks.
Credit Risk
1.______________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
2.______________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
3.______________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Market Risk
1.______________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
2.______________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
3.______________________________________________________________________
______________________________________________________________________________
182
______________________________________________________________________________
______________________________________________________________________________
Liquidity Risk
1.______________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
2.______________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
3.______________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Operational Risk
1.______________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
2.______________________________________________________________________
______________________________________________________________________________
183
______________________________________________________________________________
______________________________________________________________________________
3.______________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_____ ________________________________________________________________________
BOARD AND SENIOR MANAGEMENT OVERSIGHT
1
2
3
4
5
6
Very Poor
Poor
Average
Good
Score Value (Please tick '√')
Very Good
Question /Variables
Excellent
Sr.
No.
What is the degree of risk management policy
approved by Board of Directors?
How clearly are the roles and responsibilities of the
various functionaries of the bank defined by the
policy?
How is risk-controlling system on an integrated
basis?
How is the quantification system to quantify the
risk profile?
How are the qualitative measures to capture risks
profile?
How secure is the backup data of bank in a vault
and/or distant location?
184
Question /Variables
Sr.
Write Yes or NO
No
1
Is the management monitoring implementation of policy
and making necessary adjustments?
Does the management set limits for acceptable level of
various risks?
Is there an active involvement of management in
sketching up of strategies for risk management?
Is there a regular monitoring of the effectiveness of risk
management system?
Are the organizational roles and responsibilities of
different functionaries regarding risk management
clearly defined?
Is the risk review function Independent from risk taking
units?
Does the structure support the swift and smooth flow of
information from operational level to top management?
2
3
4
5
6
7
CREDIT RISK MANAGEMENT
1
2
3
Very Poor
Poor
Average
Good
Very Good
Score Value (Please tick
'√')
Excellent
Sr. No. Question /Variables
How periodical is the reviewing of credit
risk strategy and credit policy?
How effective is the controlling and
monitoring of credit risk on an integrated
basis and is it regularly reported to the
senior management?
How is the support system for measuring
credit risk in bank?
185
Sr. No
Question /Variables
Write
Yes or
NO
1
2
3
4
5
6
7
8
9
10
11
12
Does the bank have the credit policy duly approved by
the BOD?
Are the roles and responsibilities of individuals for credit
policy clearly spelled out?
Has the management set out credit limits for different
client segments, economic sectors, geographical locations
etc. to avoid concentration of credit?
Is the examination of the consistency and accuracy of risk
rating done periodically?
Does the bank have a defined minimum exposure limit
for Credit Rating?
Does the bank have a clear policy regarding the collection
and disposal of problem loans?
Does the bank have Credit Risk Management Committee
to oversee credit risk management function?
Is there a separate Credit Risk Management Department
(CRMD) to ensure compliance with risk management
policy?
Does the bank have pre-disbursement audit system for the
credit facilities?
Does the bank check the credibility of financial
statements of borrowers?
Does the bank gather information on a borrower's
credibility from other sources?
Does the bank monitor the periodical business
performance of problem loans?
186
MARKET RISK MANAGEMENT
Sr.
Question /Variables
Write Yes or NO
No
1
Does the board approve of the market risk strategy?
2
Does the bank have clear, comprehensive and welldocumented policies and procedural guidelines relating
to market risk?
Does the bank have a market risk management
committee?
Is the market risk policy regularly reviewed by the
management at board meetings in the light of financial
results?
Is business performance taken into account while
reviewing policy?
Do the market risk limits defined in the policy
commensurate with the overall risk management policy
of the bank?
Does the Board receive regular reports on market risk
measurement?
Does the bank use any system/model for market risk
assessment?
3
4
5
6
7
8
187
OPERATIONAL RISK MANAGEMENT
1
2
3
4
5
6
Sr.
Very Poor
Poor
Average
Good
Score Value (Please tick '√')
Very Good
Question /Variables
Excellent
Sr.
No.
Did the board establish operational risk tolerance
level and set strategic direction in relation to
operational risk?
Did the senior management develop the
Operational Risk Management Policy?
Is the policy capable to identify and assess the
operational risk inherent in all material products,
activities, processes and systems?
Is the policy capable to deal with the newly
recognized risks arising from changes in market
conditions?
Did the board establish operational risk tolerance
level and set strategic direction in relation to
operational risk?
Does the bank have any internal audit function?
Question /Variables
Write Yes or NO
No
1
2
3
4
Did the board establish
operational risk tolerance level and set strategic
direction in relation to operational risk?
Did the senior
management develop the Operational Risk Management
Policy?
Is the policy capable to identify and assess the
operational risk inherent in all material products,
activities, processes and systems?
Has the bank developed systems and procedures to
188
5
6
7
8
institute effective operational risk management
framework?
Does the bank have procedural manuals in all areas of
operations of the bank?
Are roles and responsibilities regarding business
operations and risk management clearly defined?
Does the bank have a separate function for operational
risk management, independent of internal audit?
Does there exist a system of regular and timely reporting
of pertinent information to senior management and the
Board of Directors that supports the proactive
management of operational risk?
LIQUIDITY RISK MANAGEMENT
1
How is the system to measure and monitor liquidity
risk?
2
Is there any policy in place, duly approved by
the BOD, for liquidity risk management?
Is the policy flexible enough to deal with the
unusual liquidity pressures?
3
4
Sr.
Very Poor
Poor
Average
Good
Score Value (Please tick '√')
Very Good
Question /Variables
Excellent
Sr.
No.
How is the reporting system for liquidity risk in
timely manner?
Question /Variables
Write Yes or NO
No
189
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Is there any policy in place, duly approved by the BOD,
for liquidity risk management?
Has the management given due consideration to external
and internal factors posing liquidity risk while
formulating the liquidity policy?
Does the policy define general liquidity strategy (short
and long term)?
Does the BOD/senior management review the liquidity
policy regularly?
Has the bank established assets and liabilities
management committee (ALCO)?
Does ALCO comprise of senior management from each
key area of operations?
Does the structure define roles and responsibilities of all
individuals, performing liquidity risk management
function?
Does the bank have procedural manuals for liquidity
management?
Does the management have full understanding of the
factors that could give rise to liquidity risk?
Are the tools used for liquidity risk management
adequate with respect to size, nature and complexity of
business?
Does the bank have any contingency funding plan for
liquidity?
Does the contingency plan clearly define the roles and
responsibilities of various functionaries at the time of
liquidity crisis?
Are the amounts of commitments drawn and the balance
yet to be drawn properly reported to the ALCO?
Does the bank have any exceptions reporting system for
liquidity risk in timely manner?
Thank You
190
APPENDIX – 2- SAMPLE
SR.
BLOCK
NO
1.
TOTAL NO
SAMPLE
NAME OF THE SAMPLE BANK
OF UCBS
AHMADABAD
44
06
1. KALUPUR COMMERCIAL CO-OPERATIVE
BANK
2. AHM. MERCANTILE CO-OPERATIVE BANK
3. NUTAN NAGARIK SAHAKARI BANK
4. TEXTILE TRADERS CO-OPERATIVE BANK
LTD
5. SARASPUR NAGRIK CO-OP BANK
6. THE NAVNIRMAN CO-OP BANK
2.
BARODA
26
06
7. MAHILA SAHKARI BANK
8. SHREE CHANI NAGRIK CO-OP BANK
9. M S CO-OP BANK
10. UMA CO-OP BANK
11. PRAGATI SAHKARI BANK
12. CO-OP BANK OF BARODA
3.
MEHSANA
18
01
13. MEHSANA URBAN CO OPERATIVE BANK
4.
PATAN
07
01
14.PATAN NAGRIK SAHKARI BANK
5.
SURAT
21
06
15. PRIME CO OPERATIVE BANK
16. THE FINANCIAL CO-OP BANK
17. THE ADINATH CO-OP BANK
18. THE AMOD NAGRIK CO-OP BANK
19. AKHAND ANAND CO-OP BANK
20. THE VARACHA CO-OP BANK
6.
KHEDA
12
04
21. THE MAHUDHA NAG. SAHKARI BANK
22. THE PIJ PEOPLE CO-OP BANK
23. THE NADIAD PEOPLE CO-OP BANK
24. THE UTARSANDA PEOPLES CO-OP BANK
191
7.
SABARKANTHA
13
01
25. HIMMATNAGAR NAGRIK SAHKARI BANK
8.
BHAVNAGAR
08
01
26. SHRI BHAVNAGAR NAGARIK SAHKARI
BANK
9.
RAJKOT
11
02
27.RAJKOT NAGRIK SAHKARI BANK
28.THE CO OPERATIVE BANK OF RAJKOT
10.
BHARUCH
06
01
29. THE MAHILA CO OPERATIVE NAGRIK
BANK
11.
BANASKANTHA
03
01
30. BANASKANTHA MERCANTILE BANK
12.
AMRELI
06
01
31. BAGASARA NAGRIK SAHKARI BANK
13.
JUNAGADH
05
01
32. JUNAGADH COMMERCIAL CO OPERATIVE
BANK
14.
JAMNAGAR
05
01
33. NAVANAGAR COOPERATIVE BANK
15.
KUCHCHA
05`
01
34. GANDHIDHAM MERCANTILE CO
OPERATIVE BANK
16.
GANDHINAGAR
08
02
35. GANDHINAGAR NAGRIK SAHKARI BANK
36. GANDHINAGAR URBAN CO-OP BANK
17.
ANAND
12
03
37. SARDARGANJ MER. CO-OP BANK
38. THE SARSA PEOPLE CO-OP BANK
39. THE ODE URBAN CO-OP BANK
18
DAHOD
03
01
40. DAHOD URBAN CO-OP BANK LTD
192