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Alm - Icici

1. Asset Liability Management (ALM) aims to maximize net earnings by strategically managing a bank's balance sheet dynamics and interest rate risk. 2. ALM can be defined as the management of assets and liabilities to match rates of return and maturity patterns, reducing risks for banks. 3. The study focuses on analyzing the growth, performance, and non-performing asset management of ICICI Bank Limited through ratios and ALM calculations.

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276 views6 pages

Alm - Icici

1. Asset Liability Management (ALM) aims to maximize net earnings by strategically managing a bank's balance sheet dynamics and interest rate risk. 2. ALM can be defined as the management of assets and liabilities to match rates of return and maturity patterns, reducing risks for banks. 3. The study focuses on analyzing the growth, performance, and non-performing asset management of ICICI Bank Limited through ratios and ALM calculations.

Uploaded by

KhaisarKhaisar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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INTRODUCTION

Asset Liability Management (ALM) is a strategic approach of managing the balance sheet
dynamics in such a way that the net earnings are maximized. This approach is concerned with
management of net interest margin to ensure that its level and riskiness are compatible with
the risk return objectives of the ICICI BANK LIMITED

If one has to define Asset and Liability management without going into detail about its
need and utility, it can be defined as simply “management of money” which carries value and
can change its shape very quickly and has an ability to come back to its original shape with or
without an additional growth. The art of proper management of healthy money is ASSET
AND LIABILITY MANAGEMENT (ALM).-

The Liberalization measures initiated in the country resulted in revolutionary changes in the
sector. There was a shift in the policy approach of from the traditionally administered market
regime to a free market driven regime. This has put pressure on the earning capacity of co-
operative, which forced them to foray into new operational areas thereby exposing
themselves to new risks.

As major part of funds at the disposal of come from outside sources, the management is
concerned about risk arising out of shrinkage in the value of asset, and managing such risks
became critically important to them. Although co-operative are able to mobilize deposits,
major portions of it are high cost fixed deposits. Maturities of these fixed deposits were not
properly matched with the maturities of assets created out of them.

ASSET LIABILITY MANAGEMENT is a portfolio management of assets and liability of an


organization. This is a method of matching various assets with liabilities on the basis of
expected rates of return and expected maturity patter.

In the context of ALM is defined as “a process of adjusting liability to meet loan demands,
liquidity needs and safety requirements”. This will result in optimum value of the, at the same
time reducing the risks faced by them and managing the different types of risks by keeping it
within acceptable levels.
NEED OF THE STUDY

The need of the study is to concentrates on the growth and performance of ICICI BANK
LIMITED and to calculate the growth and performance by using asset and liability
management. And to know the management of non-performing assets.

 To know financial position of ICICI BANK LIMITED


 To analyze existing situation of ICICI BANK LIMITED
 To improve the performance of ICICI BANK LIMITED
 To analyze competition between ICICI BANK LIMITED with other cooperative.
OBJECTIVES OF THE STUDY

 To study the concept of ASSET & LIABLITY MANAGEMENT in ICICI BANK


LIMITED

 To study process of CASH INFIOWS and OUTFLOWS in ICICI BANK LIMITED

 To study RISK MANAGEMENT under ICICI BANK LIMITED

 To study RESERVES CYCLE of ALM under ICICI BANK LIMITED

 To study FUNCTIONS AND OBJECTIVES of ALM committee.


SCOPE OF THE STUDY
In this study the analysis based on ratios to know asset and liabilities management under
ICICI BANK LIMITED and to analyze the growth and performance of ICICI BANK
LIMITED by using the calculations under asset and liability management based on ratio.
 Ratio analysis
 Comparative statement
 Common size balance sheet.
RESEARCH METHODOLOGY

The study of ALM Management is based on two factors.

1. Primary data collection.

2. Secondary data collection

PRIMARY DATA COLLECTION:

The sources of primary data were

 The chief manager – ALM cell

 Department Sr. manager financing & Accounting

 System manager- ALM cell

Gathering the information from other managers and other officials of the ICICI BANK
LIMITED

SECONDARY DATA COLLECTION:

Collected from books regarding, journal, and management containing relevant information
about ALM and Other main sources were

 Annual report of the ICICI BANK LIMITED


 Published report of the ICICI BANK LIMITED
 RBI guidelines for ALM.
LIMITATION OF THE STUDY

1. This issue is two based totally on beyond archives of ICICI BANK LIMITED
2. The evaluation is based absolutely on structural liquidity assertion and hole
evaluation.
Three. The seem at is mainly based totally on secondary facts.
Four. The have a look at length of forty five days as prescribed via college
five. The appear at is limited as a great deal as the date and statistics provided via ICICI
BANK LIMITED and its annual evaluations

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