INTEREST RATE SENSITIVITY MANAGEMENT IN SELECT COMMERCIAL BANKS IN INDIA

Finance(Banking)

Commercial banks play prominent role in the process of bring economic development in the nation. In the process of providing various financial services to the needy institutions and individuals the commercial banks are the major traditional financial institutions in India. The Indian banking industry have been implementing diversified strategies to curb the impact of risk in liquidity, credit, exchange, interest rate in order to maximize the bank’s Net Interest Income (NII) which is the basic source of a bank’s profitability. The pricing of assets and liabilities have been influenced by the certain factors of deregulation in interest rates and operational flexibility in the banking system on Interest Rate Risk (IRR).The present research outlines mainly on the measurement of interest rate risk in public sector banks which include Bank of India and Andhra Bank and Private sector banks which include Axis Bank and HDFC Bank using the GAP analysis model.

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