This study investigates the relationship between risk management frameworks and investment performance in the banking sector, with specific reference to Axis Bank. The primary objective is to evaluate how key risk management practices—such as credit risk assessment, market risk management, operational risk control, and liquidity management—contribute to effective investment decision-making and financial performance. The research adopts a descriptive and analytical approach, utilizing both primary and secondary data. Primary data was collected through structured questionnaires from 100 respondents with knowledge of banking and investment practices. Secondary data was obtained from the published financial statements of Axis Bank, focusing on key indicators such as Return on Equity (ROE), Return on Assets (ROA), Net Interest Margin (NIM), and Non-Performing Assets (NPA). The findings indicate that effective implementation of risk management strategies, including diversification, hedging, and stress testing, significantly enhances financial stability and improves investment outcomes. The study further highlights the importance of maintaining optimal capital adequacy and controlling non-performing assets to ensure sustainable growth. The study concludes that a robust and integrated risk management framework plays a crucial role in strengthening investment performance, improving decision-making efficiency, and enhancing long-term financial stability in the banking sector.

Keywords— Risk Management, Investment Performance, Axis Bank, Credit Risk, Market Risk, Financial Ratios, Capital Adequacy, Non-Performing Assets.