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Abstract
Banks are economy progress drivers. Credit risk, interest risk, liquidity risk, market risk, operational risk and management risk are faced by banking business and are very important risk related to bank performance. Corporate lending is a prime driver of banks profitability but is also prone to more risk of lending in recessionary conditions. At times banks do also experience of willful default under exceptional circumstances. These days increasing willful defaulters is a serious problem faced by Indian banking sector which has affected financial health and capital base of Indian banks. A high level of willful defaulters proposes high probability of large numbers of credit defaults that affects the profitability, net income of banks, erosion of the value & quality of assets, survival of banks and that will be contagious to growth and performance of the economy at large.