International Journal of Social Science & Economic Research
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Title:
LIQUIDITY RISK MANAGEMENT IN INDIAN PRIVATE SECTOR BANKS

Authors:
Mary George , Jinsu Ann Markose , Dr. Prakash

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Mary George1 , Jinsu Ann Markose2 , Dr. Prakash3
1. P.G Student, Department of Commerce/(Christ Deemed to be University) Bengaluru, India
2. P.G Student, Department of Commerce/ (Christ Deemed to be University) Bengaluru, India
3. Assistant Professor, Department of Commerce/(Christ Deemed to be University)

MLA 8
George, Mary, et al. "LIQUIDITY RISK MANAGEMENT IN INDIAN PRIVATE SECTOR BANKS." Int. j. of Social Science and Economic Research, vol. 3, no. 11, Nov. 2018, pp. 5977-5991, ijsser.org/more2018.php?id=415. Accessed Nov. 2018.
APA
George, M., Markose, J., & Dr. Prakash. (2018, November). LIQUIDITY RISK MANAGEMENT IN INDIAN PRIVATE SECTOR BANKS. Int. j. of Social Science and Economic Research, 3(11), 5977-5991. Retrieved from ijsser.org/more2018.php?id=415
Chicago
George, Mary, Jinsu Ann Markose, and Dr. Prakash. "LIQUIDITY RISK MANAGEMENT IN INDIAN PRIVATE SECTOR BANKS." Int. j. of Social Science and Economic Research3, no. 11 (November 2018), 5977-5991. Accessed November, 2018. ijsser.org/more2018.php?id=415.

References
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Abstract:
ALM has attracted many researchers to carry out different studies, which were mainly focused on various aspects of ALM such as a tool for managing risks, caused by changes in the interest and liquidity position of the bank. This paper examines the asset-liability mismatches in the Indian private sector banks using the maturity gap analysis to understand the short- term & longterm liquidity patterns and strategies in maintaining the liquidity risk. A strong liquidity position in the banking industry is always essential. The probabilities of default in the banking industry will increase, in case the bank fails to manage their liquidity risk. The transformation in banking process has made it necessary to take up the practice of ALM as a strategic planning to survive in this competitive and risky environment. The present paper studies about how ALM is used as a tool for managing liquidity risk using RBI-prescribed Gap model in seven banks, namely, Axis Bank, Federal Bank, HDFC, ICICI, Kotak Mahindra, IndusInd, and Yes Bank. The findings of this paper conclude that nearly all the banks face a shortage of funds and are exposed to risk. In the case of few banks, ALM needs an improvement in reducing its current liabilities and increasing its current assets.