ASSET LIABILITY MANAGEMENT AND PROFITABILITY OF SELECTED COMMERCIAL BANKS: A STUDY WITH SPECIAL REFERENCE TO CHENNAI CITY

Asset Liability Management (ALM) plays an important role in maintaining the financial stability and profitability of commercial banks. Effective management of assets and liabilities helps banks to maintain liquidity, reduce financial risk and improve operational efficiency. The present study examines the relationship between Assets Liability Management and profitability of selected commercial banks with special reference to Chennai City. The study is mainly based on secondary data collected from annual reports, financial statements and official banking sources for the period from 2020 to 2025. The present study analysis important variables such as deposit ratio, borrowings ratio and return on assets (ROA) to evaluate the profitability position of banks. Statistical tools like descriptive analysis, correlation and regression analysis have been used for interpretation of the data. The findings of the study indicate that Assets Liability Management has a significant role in improving the financial performance and profitability of commercial banks. This study also highlights the importance of effective deposit and borrowing management in maintaining banking stability. The study concludes that proper Asset Liability Management practices support better financial performance and sustainable growth of commercial banks. Keywords: Asset Liability Management, Commercial Banks, Profitability, Deposit Ratio, Borrowing Ratio, Return on Assets, Financial Performance, Chennai City.