Author(s): Karthik Reddy, Ravichandra Reddy B
Assets and liabilities management is an effective tool for identification, measurement and management of financial risks associated with balance sheet items of financial sector companies both in banking and non-banking companies. In India both banks and NBFCs were following ALM practices to management of various risks as per RBI guidelines. However, deposit taking NBFCs are exposed some problems in effective implementation of ALM practices in India. Therefore, present study addressed this issue through collecting data from 80 respondents working in five deposits taking NBFCs in India (Tamilandu). The study observed that, majority of respondents expressed difficulties ALM practices in aspects of operational, MIS, fund mixing, liquidity and market risk management. The study also applied ANOVA test and revealed significant difference in responses on problems in ALM practices within and between selected NBFCs in India (Tamilnadu).