This project report summarizes asset liability management at ICICI Bank. ICICI Bank is India's largest private sector bank with over $109 billion in total assets. The report discusses ICICI Bank's board of directors and management. It then provides background on ICICI Bank and its joint venture with Prudential for asset management. The report defines asset liability management and outlines the objectives of studying ALM at ICICI Bank. It discusses the scope of ALM functions including liquidity risk, interest rate risk, and currency risk management.

1. Project Report On Asset Liability
Management of ICICI Bank
Under the guidance of
Dr.Shaik Kamruddin
Assistant Professor
Presented By
Arshad Alam
MBA
1503010336

2. Board of Director
Ms. Chanda Kochhar - Chairperson
Mr. S. Naren - Executive Director & Chief (I.O )
Management
Mr. Nimesh Shah- Managing Director & CEO
Mr. B Ramakrishna - Executive Vice President.
Directors of the Trustee Company
Mr. M. N. Gopinath – Chairman( I.M)
Mr. S. Naren - Executive Director & Chief
Investment Officer.

3.  ICICI Bank was originally promoted in 1994 by ICICI
Limited, an Indian financial institution, and was its
wholly-owned subsidiary.
 ICICI's shareholding in ICICI Bank was reduced to 46%
through a public offering of shares in India in fiscal 1998,
an equity offering in the form of ADRs listed on the NYSE
in fiscal 2000.
 ICICI Bank is India's largest private sector bank with total
assets of 7,206.95 billion (US$ 109 billion) and
liability 630959.52 at March 31, 2016 and profit after
tax 97.26 billion (US$ 1,468 million) for the year ended
March 31, 2016.
 ICICI Bank currently has a network of 4,608 Branches
and 14,052 ATM's across India.

4.  ICICI Prudential Asset Management Company Ltd.
is a joint venture between ICICI Bank, India’s second
largest commercial bank & a well-known and trusted
name in the financial services in India, & Prudential
Plc, one of the United Kingdom’s largest players in the
financial services sectors

5.  Our vision is a world free of poverty in which every
individual has the freedom and power to create and
sustain a just society in which to live.
Mission
 Our mission is to create and support strong
independent organisations which work towards
empowering the poor to participate in and benefit
from the Indian growth process.

6.  Asset Liability Management (ALM) is a strategic
approach of managing the balance sheet dynamics in
such a way that the net earnings are maximized.
 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”
 The art of proper management of healthy money is
ASSET AND LIABILITY MANAGEMENT (ALM).
 ASSET LIABILITY MANAGEMENT is a portfolio
management of assets and liability of an organization.

7.  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.

8.  To study the concept of ASSET & LIABLITY
MANAGEMENT in ICICI.
 To study process of cash inflows and outflows in
ICICI
 To study risk management under ICICI
 To study reserves cycle of ALM under ICICI
 To study functions and objectives of ALM committee

9.  The need of the study is to concentrates on the
growth and performance of ICICI 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 ICICI
 To analyze existing situation of ICICI
 To improve the performance of ICICI
 To analyze competition between ICICI with other
cooperative.

10. The study of ALM management is based on two
factors.
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 ICICI

11.  Collected from books regarding, journal, and
management containing relevant information about
ALM and Other main sources were
 Annual report of the ICICI
 Published report of the ICICI
 RBI guidelines for ALM.
 https://www.icicibank.com.

12.  The scope of ALM function can be described as
follows:
 Liquidity Risk Management
 Interest Rate Risk Management
 Currency Risk Management
 Settlement Risk Management
 Basis Risk Management
 The RBI guidelines mainly address Liquidity Risk
Management and Interest Rate Risk Management

13.  The following are the concepts discussed for analysis of
Asset-Liability Management under above mentioned
risks.
● Liquidity Risk
● Maturity profiles
● Interest rate risk
● Gap analysis

14.  ALM technique is aimed to tackle the market risks. Its
objective is to stabilize and improve Net interest
Income (NII).
 Implementation of ALM as a Risk Management tool is
done using maturity profiles and GAP analysis.
 ALM presents a disciplined decision making
framework for while at the same time guarding the risk
levels.

15.  They should strengthen its management information
system (MIS) and computer processing capabilities for
accurate measurement of liquidity and interest rate Risks
in their Books.
 It is essential that remain alert to the events that effect its
operating environment & react accordingly in order to
avoid any undesirable risks.
 ICICI requires efficient human and technological
infrastructure which will future lead to smooth integration
of the risk management process with effective business
strategic

16.  The burden of the Risk and its Costs are both manageable and transferable.
 Financial service firms, in the addition to managing their own risk,
 also sell financial risk management to others. They sell their services by
bearing customers financial risks through the products they provide.
 A financial firm can offer a fixed-rate loan to a borrower with the risk of
interest rate movements transferred from the borrower to the.
 Financial services involve the process of intermediation between those who
have financial resources and those who need them,
 either as a principal or as an agent.
 Thus, value breaks into several distinct functions, and it includes the
intermediation of the following:
 Maturity Preference mismatch, Default, Currency Preference mis-match, Size
of transaction and Market access and information.