A STUDY OF ASSET LIABILITY MANAGEMENT ICIC PRUDENTIAL

Abstract

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.