Asset Liability Management – A Comparative Study on Public Private and Foreign Sector Commercial Banks in India

S Prabhakar; S Mathivannan

S Prabhakar Ph.D. Research Scholar, P.G. and Research Department of Commerce, Sri S.R.N.M. College, Sattur
S Mathivannan Associate Professor and Head, P.G. and Research Department of Commerce, Sri S.R.N.M. College, Sattur

Keywords: Asset-liability management, Liquidity risk, Interest rate risk, Dynamic risk management

Abstract

Asset-Liability-Management (ALM) is a comprehensive and dynamic framework for measuring, monitoring and managing the market risk of a bank. It is the management of balance sheet structure (Asset-Liability) in such a way that the net earnings from interest are maximized within the overall risk-preference (present and future) of the banks. This study examined the effect of Asset-Liability Management (ALM) on the Commercial banks profitability in Indian financial market by taking into consideration Public Sector Bank, private sector bank and foreign sector banks in India. This paper attempts to compare the growth rates of assets and liabilities of different sectors of SCBs in India.