Financial risk management is essential for maintaining the stability and profitability of the Indian banking sector. This study aims to examine the financial risk management practices adopted by Indian banks, focusing on credit risk, market risk, liquidity risk, and operational risk. It highlights the role of the Reserve Bank of India (RBI) and Basel guidelines in managing financial risks. The study is based on secondary data collected from bank annual reports, RBI publications, and research papers. It also aims to understand the challenges faced by banks and the importance of effective risk management in improving financial performance and ensuring long-term stability.

Dhaneshwari Arun Chirwatkar, Dr. Ujwala Narkhede, "Financial Risk Management Practices in Indian Banking" International Journal of Scientific Research and Engineering Development, V9(5): Page(1354-1359) September - October 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.