An assessment - Asset and liability management of scheduled commercial banks in India

This paper examines management of asset-liability in banking sector. The main objective of the study is to present the optimal mix of asset and liability of Scheduled Commercial Banks in India. The paper mainly discusses on the SBI Group, Nationalised Banks Group and Private Banks Group selected as the parameter. The increase in the profitability of a bank is always preceded by the composition of assets and liability. Hence, the following ratios are calculated to identify the optimal mix of asset and liabilities in relation to profitability, ratio analysis was used on the sample of 56 banks comprising SBI and its Associate Banks 8, Nationalized Banks group 19 and Private Banks group 29 for the ten years period. The findings suggest that SBI and its associate bank group were better performers as compared to Private Banks group and Nationalized banks group.