A mature credit risk management (CRM) framework determines to a great extent the strength of banking system in general and financial performance of a bank in particular. Assessment of a maturity CRM framework suffers from a lack of reliable measure for this purpose. The CRM index for commercial banks, as proposed here attempts to provide a quantitative measure of management practices based on predefined benchmark practices that CRM efforts should aim to develop and follow. Based on the computation of the CRM index scores for thirty-three commercial banks in India, an attempt has been made to validate the index by relating their CRM index scores with their nonperforming advances ratios.

1. Rewrite that paragraph, restructuring it in a different way.