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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

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› Introduction of the Topic

› Assets Liability Management of Banks
› Objective of the study
› Research Methodology
› Analysis
› indings
› Suggestions

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&c"""'( 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.

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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

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› Capital
› Reserve and Surplus
› Deposits
› Borrowings
› Other Liabilities & Pro.
› Contingent Liabilities

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› Cash and Balance with RBI

› Balance with other banks
› Investment
› Advances
› ixed assets
› Other assets


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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


 


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Equity share capital 525.91 ixed 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

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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



(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.






 › 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).





› 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.