A Study on Effective Asset Liability Management at Bhatkal Agriculture and Rural Development Co-operative Bank Ltd. Bhatkal.

Abstract

The current study relates to effective management of Asset liabilities in Bhatkal Agriculture and Rural Development Co-operative Bank Limited. The management of assets and liabilities is one of the risk managing technique used in the banking sector to increase profitability and improve their performance. The RBI administrative body has established some of the standard rules for controlling banks when lending and receiving deposits. But, the Cooperative bank is regulated more by Cooperative act 1965, the banking regulation act 1949 and the state Apex Bank. The asset and liability management regulation are differing between commercial bank and cooperative banks. They are free from certain Standard rules prescribed by the RBI. The tools used for the study are time series analysis of the balance sheet of the bank, Ratio analysis, GAP analysis and Correlation test to study the effective asset and liability management of the Bank. The secondary data is collected from the bank final reports, Wikipedia, RBI guidelines etc.