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    This document is a project report on asset and liability management at Syndicate Bank Limited submitted in partial fulfillment of an MBA degree. It discusses the introduction, need, objectives and scope of the study which examines the growth and performance of Syndicate Bank using asset and liability management ratios and calculations. The methodology includes collecting primary data from bank managers and secondary data from annual reports, published bank reports and RBI guidelines. It also reviews several relevant articles on topics like interest rate derivatives, asset liability management in commercial banks, and managing risks from asset-liability mismatches.

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    This document is a project report on asset and liability management at Syndicate Bank Limited submitted in partial fulfillment of an MBA degree. It discusses the introduction, need, objectives and scope of the study which examines the growth and performance of Syndicate Bank using asset and liability management ratios and calculations. The methodology includes collecting primary data from bank managers and secondary data from annual reports, published bank reports and RBI guidelines. It also reviews several relevant articles on topics like interest rate derivatives, asset liability management in commercial banks, and managing risks from asset-liability mismatches.

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    2K views12 pages

    Assets and Liability Management: A Project Report ON

    Uploaded by

    MohmmedKhayyum
    This document is a project report on asset and liability management at Syndicate Bank Limited submitted in partial fulfillment of an MBA degree. It discusses the introduction, need, objectives and scope of the study which examines the growth and performance of Syndicate Bank using asset and liability management ratios and calculations. The methodology includes collecting primary data from bank managers and secondary data from annual reports, published bank reports and RBI guidelines. It also reviews several relevant articles on topics like interest rate derivatives, asset liability management in commercial banks, and managing risks from asset-liability mismatches.

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    of 12

    A

    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

    MASTER OF BUSINESS ADMINISTRATION

    Department of Business Administration


    AURORA’S PG COLLEGE
    RAMANTHAPUR
    (Affiliated to Osmania University)
    2018-2020
    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 SYNDICATE 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 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.

     To know financial position of SYNDICATE BANK LIMITED


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

     To study the concept of ASSET & LIABLITY MANAGEMENT in SYNDICATE


    BANK LIMITED.

     To study process of CASH INFIOWS and OUTFLOWS in SYNDICATE BANK


    LIMITED

     To study RISK MANAGEMENT under SYNDICATE BANK LIMITED

     To study RESERVES CYCLE of ALM under SYNDICATE 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
    SYNDICATE BANK LIMITED and to analyze the growth and performance of
    SYNDICATE 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 SYNDICATE
    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 SYNDICATE BANK LIMITED


     Published report of the SYNDICATE BANK LIMITED
     RBI guidelines for ALM.
    LITERATURE REVIEW
    P. 2.2 Articles

    ARTICLE: 1

    TITLE: Interest rate derivatives and asset liabilities management by commercial banks.

    AUTHOR: Katherina Simons

    JOURNAL DETAILS: International journal of advanced research

    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

    TITLE: Asset Liability Management

    AUTHOR: VAN DEVENDER, IMAI AND MESLER (2004)

    JOURNAL DETAILS: International journal of pure and applied mathematics

    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

    TITLE : Asset and liability management on banking institution

    SOURCE : WWW.riskarticles.com

    AUTHOR : Professor .P. Madhu Sudan Rao

    JOURNAL DETAILS: International journal of finance

    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

    faced by various banks , other financial services companies.


    ARTICLE:4

    TITLE: Asset Liability Management for Banks

    SOURCE: SSRN Electronic Journal

    AUTHOR: Rossano Giandomenica

    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

    TITLE: Asset and Liability Management in fianacial crisis

    AUTHOR: Arzu Tektas

    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

    wellbeing of banks during crisis.

    BIBILIOGRAPHY

    Title of the Books Author

    1. Risk management Gustavson hoyt

    2. Donald E Fischer
    Security Analysis Portfolio Management
    3. Ronald J Jordan

    4. Management Research magazine P.M.Dileep Kumar


    5. India financial system M.Y. Khan

    Web sites

    www.syndicatebank.con

    Www.Rbi.Org

    Www.Amfiindia.Com

    Www.SYNDICATE.com

    Www.Bseindia.Com

    Www.Nseinda.Com

    Www.Bluechipinda.Co.In

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