The Banking sector has a crucial role to play in the development of an economy. It is the key driver of economic growth of the country. In India, the banking sector is very strong at the present but at the same time, banking is considered to be a very risky business. Most often than not root cause of a financial turmoil is inefficient risk management practices adopted by the financial institutions. Banks must thus see risk management as an ongoing and valued activity as it is directly linked to financial system stability of the country. The purpose of this research is to outline various risks posed by the Indian Banks and strategies adopted by them for risk management. The secondary objective is to compare the risk severity and success of risk management practices for the public sector and private sector Indian Banks.