Project Report on Assets and Liability Management of Different Banks - Comparative Study of Bank of India, Oriental Bank of Commerce, Bank of Rajasthan Ltd. and Jammu & Kashmir Bank
This Project Report is on Assets and Liability Management of Different Banks and all information about Comparative Study of Bank of India, Oriental Bank of Commerce, Bank of Rajasthan Ltd. and Jammu & Kashmir Bank
Contents :
- Introduction of the Topic
- Assets Liability Management of Banks
- Objective of the study
- Research Methodology
- Analysis
- Findings
- Suggestions
Assets and Liabilities Management :
Assets and Liabilities Management {A.L.M.}:- Assets liabilities Management is concerned with strategic balance sheet management involving risks caused by changes in interest rates, exchange rate, credit risk and the liquidity position of bank.
Asset Liability Management is the act of planning, acquiring, and directing the flow of funds through an organization.
Parameters of ALM
Gap :- Total assets – Total liability
Net Interest Income:- Interest Income – Interest Expenses
Net Interest Margin:- Net Interest Income/ Average Assets
Equity Economic Ratio:- Owner’s fund / Total assets
Components of Bank’s Balance Sheet
Bank’s Liabilities :
- Capital
- Reserve and Surplus
- Deposits
- Borrowings
- Other Liabilities & Pro.
- Contingent Liabilities
Bank’s Assets :
- Cash and Balance with RBI
- Balance with other banks
- Investment
- Advances
- Fixed assets
- Other assets
Flow-Chart of Banks :
Objectives of the study
An effective Asset Liabilities Management technique aims to manage the volume, mix, maturity, and rate sensitivity, quality of assets and liabilities as a whole so as to attain a predetermined acceptable risk/reward ratio. The main purpose of ALM is to enhance the asset quality.
- To study the components of assets and liabilities in Banks
- To study the Asset Liability Management in public and private sector banks
Bank of India - Balance sheet
| Source of Funds | Rs. (in Crore) | Uses of Funds | Rs. (in Crore) |
| Equity share capital | 525.91 | Fixed assets: Net block | 636.05 |
| Reserve & surplus | 8300.38 | Capital work in progress | 26.92 |
| Unsecured loans | 150011.98 | Investments | 41802.88 |
| Current Liabilities and provision | 11056.16 l | Current assets, Loan & advances | 3407.32 |
| Total | 169894.43 | Total | 45873.17 |
Parameter of Asset and Liability Management :
Gap -: Total assets – Total liability
Gap-: 45873.17-169894.43 = (-124021.26)
Equity Economic Ratio-: Owner’s fund / Total assets
Equity Economic Ratio-: 525.91/4143.37 = 0.13
Interpretation: The equity economic ratio shows that owner’s stake is less(.13) as compare to total assets and huge gap between (-124021.26 crore) total assets and total liabilities.
Findings
- In case of public sector banks, Equity Economic Ratio is very low rather than private sector banks (bank of Rajasthan Ltd.).
- In case of public sector banks, these banks have no more investment in fixed assets rather than the private sector banks.
- All banks (public as well as private sector) have more current liabilities over the current assets.
- All banks (public as well as private sector) have more unsecured loans.
- In case of public sector banks, there is huge gap between total assets and liabilities rather than private sector banks (Jammu and Kashmir bank).
Suggestions
- All banks (public as well as private) should use more owners’ funds so that banks can manage their assets and liabilities in case of pre maturity of liabilities.
- All banks (public as well as private) should try to reduce their current liabilities or increase their current assets.
- All banks should (mostly public sector bank) invest more in fixed assets.
- All banks (public as well as private) should not use more unsecured loan otherwise there will be more default risk.
Project Description :
Title : Assets and Liability Management of Indian Banks Project Report- 65 Pages
This project is our paid category, its cost is Rs. 2499/- only without Synopsis and Rs. 2999/- only with synopsis. If you need this project, mail us at this id : bkm.7899@gmail.com or Call me at +91-8398957646.
We will send you a hardcopy with hard binding and a softcopy in CD from courier.