Abstract:

The Asset-Liability-Management (ALM) framework is a dynamic and all-inclusive tool for assessing, tracking, and controlling a bank's market risk. It involves managing the asset-liability portion of the balance sheet in a way that optimizes net interest income while staying within the banks' overall risk tolerance (both current and prospective). Using the gap analysis technique, this study looked at the impact of asset-liability-management (ALM) on the profitability of commercial banks in the Indian financial market. It considered two banks: Union Bank of India, a public sector bank, and ICCI Bank, a private sector bank. This study aims to evaluate the interest rate risk to which both banks are exposed over the course of 2009–2014.

Description:

.