Project on Risk Management

46558 WordsAug 3, 2010187 Pages
A Summer Training Project Report on “RISK MANAGEMENT BY INDUSIND BANK LTD.” Undertaken at INDUSIND BANK, AGRA 10th April to 10th June 2009 Submitted by SUBODH AGARWAL Enrollment no. : 4108163163 Management of Business Finance INDIAN INSTITUE OF FINANCE CORPORATE GUIDE: MR. ASHOK SHARMA ASST. MANAGER AGRA BRANCH, AGRA UTTAR PRADESH. ACKNOWLEDGEMENT Expressing gratitude is not just an exercise of formality…show more content…
Ensuring robustness of financial models and the effectiveness of all systems used to calculate market risk. Liquidity risk is the potential inability to meet the bank’s liabilities as they become due and are managed through caps on the net asset calculations in the various time buckets. Interest rate risk is the risk where changes in market interest rates might adversely affect a bank’s financial condition. A long term impact of changing interest rate is on banks net worth since the economic value of bank’s assets, liabilities and off balance sheet positions get affected due to variation in market interest rates. The management of Interest Rate Risk should be one of the critical components of market risk management in banks. Deregulation of interest rates has, however, exposed them to the adverse impacts of interest rate risks. The Net Interest Income or Net Interest Margin (NIM) of banks is dependent on the movements of interest rates. The GAP model for the Asset Liability Management is concerned with measuring interest rate risk by finding the pattern of the net interest income over a given period of time. Capital adequacy norms lays down maintaining of adequate capital risk adequacy ratio (CRAR) has to be adhered to in the process of implementing Basel Norms using Duration or Maturity method. Measures like value at risk (VaR) have to be undertaken so to arrive at the loss possibility

More about Project on Risk Management

Open Document