Assets and Liability Management: A Project Report ON
Assets and Liability Management: A Project Report ON
PROJECT REPORT
ON
ASSETS AND LIABILITY MANAGEMENT
AT
SYNDICATE BANK LIMITED
Submitted
By
P. SAI KIRAN
H.T.NO: 1302-18-672-180
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE
OF
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.
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 SYNDICATE
BANK LIMITED and to calculate the growth and performance by using asset and liability
management. And to know the management of non-performing assets.
Gathering the information from other managers and other officials of the SYNDICATE
BANK LIMITED
Collected from books regarding, journal, and management containing relevant information
about ALM and Other main sources were
ARTICLE: 1
TITLE: Interest rate derivatives and asset liabilities management by commercial banks.
ABSTRACT
Bank participation in derivative s market has risen sharply in recent years . The total amount
interest rate , currency , commodity , and equity contracts at US commercial and saving banks
soared from $6.8 trillion in 1990 to $11.9 trillion in 1993 , an increase of 75% . A major
concern facing policy makers and bank regulatory today is the possibility that the rising use
of derivatives has increased the riskiness of individual banks of the banking system as a
whole.
ARTICLE: 2
ABSTRACT
In banking asset liability management is the practice of managing risks that arises due to
mis matches between asset and liabilities of the banks. This can also be seen in insurance.
ARTICLE: 3
SOURCE : WWW.riskarticles.com
ABSTRACT
In banking institutions , asset and liability management is the practice of managing various
risks that arise due to mismatches between the assets and liabilities (loans and advances) of
the bank . Banks face several risks such as the risks associated with assets , interest ,
currency exchange risks. Asset liability at tool to manage interest rate risks and liquidity risk
ABSTRACT:
The model by using a contingent claim approach, determines the fair value of the banks liabilities
accounting for the protection and the surrender possibility.Furthermore , it determines the implied
duration of banks liabilities so to show that the surrender possibility will reduce the effective
duration of banks liabilities. imlplications for the immunization are also treated.
ARTICLE:5
ABSTRACT: An efficient asset – liability management requires maximizing bank’s profit as well
as controlling and lowering various risks. This multi-objective decision problem aims to reach goals
such as maximization of liquidity , revenue, capital adequacy, and market share subject to financial,
legal requirements and institutional policies.This paper models asset and liability
management(ALM) in order to show how different managerial strategies affect the financial
BIBILIOGRAPHY
2. Donald E Fischer
Security Analysis Portfolio Management
3. Ronald J Jordan
Web sites
www.syndicatebank.con
Www.Rbi.Org
Www.Amfiindia.Com
Www.SYNDICATE.com
Www.Bseindia.Com
Www.Nseinda.Com
Www.Bluechipinda.Co.In