A STUDY ON ASSET LIABILITY MANAGEMENT WITH REFERENCE TO CANARA BANK HYDERABAD

Asset and liability management (ALM) is a process and approach used in financial institutions to lower financial risk resulting from mismatches between the assets and liabilities (maturities and interest rates). By means of which a company balances its assets and obligations over time so preserving financial stability, liquidity, and profitability.ALM emphasises in the banking and other financial sectors in reducing risks related to market uncertainty, liquidity shortage, and interest rate volatility. Constant observation, analysis, adjustments in asset and liability structure help to optimise profits and aid to control any risks. Apart from a risk controlling instrument, it is also a necessary tool for keeping solvency and implementing Basel III rules.