Paper Contents
Abstract
In India asset liability mismatch in balance sheet of commercial banks posed serious challenges as the banks were following the traditional methods of recording assets and liabilities at the book value. The liberalization process in the economy coupled with multifaceted global developments exposed banks for various kinds of risks viz. interest rate risk, liquidity risk, exchange risk, operational risk etc. which have direct impact on their operations, profitability and efficiency to compete with. The Central Bank of the country focused and advised banks for taking concrete steps in minimizing the mismatch in the asset-liability composition. There had been many positive impacts of various strategies followed by banks in the last one decade. This paper is an attempt to analyze the impact of measures and strategies banks undertook to manage the composition of asset-liability and its impact on their performance in general and profitability in particular. Keywords: Asset-Liability Management, Interest Rate Risk, Gap Analysis,
Copyright
Copyright © 2023 C.Ravi Kumar . This is an open access article distributed under the Creative Commons Attribution License.
