An Analysis of Asset-Liability Management in Indian Banks

Mihir Dash, K. A. Venkatesh, Bhargav B. D.
2011 Social Science Research Network  
Assets and Liabilities Management (ALM) is a dynamic process of planning, organizing, coordinating and controlling the assets and liabilities -their mixes, volumes, maturities, yields and costs in order to achieve a specified Net Interest Income. As all transactions of the banks revolve around raising and deploying the funds, Asset-Liability Management (ALM) gains more significance as an initiative towards the risk management practices by the Indian banks. Measuring and managing liquidity risk
more » ... s an important dimension of ALM. Mismatch in the maturity profile of assets and liabilities exposes the balance sheet to liquidity risk. This paper is aimed at measuring the liquidity Risk in SBI & associate banks in India, by using Gap Analysis Technique (maturity profiling). Using publicly available information, this paper attempts to assess the liquidity risk carried by the sample banks in the year 2011-2012. The findings revealed that the banks are exposed to liquidity risk.
doi:10.2139/ssrn.1760786 fatcat:nwf3bn3phjhbtiezjr4sfkql34