Referred International Conference Proceedings of the World Congress on Engineering, London, UK, Vol. 2I, pp. 1149-1154, 2008
6 Pages Posted: 11 Oct 2010 Last revised: 29 Apr 2012
Date Written: June 23, 2008
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 (NII). The NII is the difference between interest income and interest expenses and the basic source of banks profitability. The easing of controls on interest rates has led to higher interest rate volatility in India. Hence, there is a need to measure and monitor the interest rate exposure of Indian banks. This paper entitled “A Study on the Assets and Liabilities Management (ALM) Practices with special reference to Interest Rate Risk Management at ICICI Bank” is aimed at measuring the Interest Rate Risk in ICICI Bank by using Gap Analysis Technique. Using publicly available information, this paper attempts to assess the interest rate risk carried by the ICICI bank in March 2005, 2006, & 2007. The findings revealed that the bank is exposed to interest rate risk.
Keywords: Interest Volatility, Interest Rate Risk, Indian Banks.
JEL Classification: E43, D81, G21
Suggested Citation: Suggested Citation
Balakrishnan, Charumathi, Asset Liability Management in Indian Banking Industry - With Special Reference to Interest Rate Risk Management in ICICI Bank (June 23, 2008). Referred International Conference Proceedings of the World Congress on Engineering, London, UK, Vol. 2I, pp. 1149-1154, 2008. Available at SSRN: https://ssrn.com/abstract=1663597
By N. Mankiw