Application of Six Sigma to Evaluate Credit Risk Assessment  in Commercial Banks

Abhijit Mishra; Akriti Singh; Jaibeer Pratap Singh; Bijendra kumar Pushkar; Rajesh Singh; R.P. Singh

doi:10.21844/mijia.21.2.10

Abhijit Mishra Asstt. Professor, Humanities & Social Science Department, Madan Mohan Malaviya University of Technology, Gorakhpur
Akriti Singh Research Scholar, Management Studies Department, Madan Mohan Malaviya University of Technology, Gorakhpur
Jaibeer Pratap Singh Research Scholar, Department of Business Management and Entrepreneurship, Dr. Ram Manohar Lohia Awadh University, Ayodhya
Bijendra kumar Pushkar Asstt. Professor, Management Studies Department, Madan Mohan Malaviya University of Technology, Gorakhpur
Rajesh Singh Cyber Security Solution Strategist, Seceon Network Pvt Ltd.
R.P. Singh MBA Student, Humanities & Management Studies Department, Madan Mohan Malaviya University of Technology, Gorakhpur

DOI: https://doi.org/10.21844/mijia.21.2.10

Keywords: Profitability, debit risk assessment, DMAIC, financial information, six sigma etc.

Abstract

Improper credit risk assessment reduces the bank's profitability. It also has an impact on the quality of assets and also increases the loan
losses and will also cause financial crises for the bank. If this happens the common people will lose their faith in the bank and it will
directly affect the deposits of money into the bank.
The objective of the paper is to provide an introduction and understanding of credit risk and analysis of credit risk assessment. The
purpose of this study was to identify debt risk and debt risk assessment and to resolve it with the help of the six sigma DMAIC tool.
Banks are very careful and strict in providing financial information to others.In the 1980s, Motorola began using Six Sigma (Six Sigma) to
address market share and manufacturing costs, as well as increased production costs. When someone applies for the loan it becomes very
difficult for the bank that whatever to give the loan or not so we need to check everything about the borrower. So if we apply the six sigma
we can make the process very easy.