Volume : V, Issue : IV, April - 2015

A Study of Liquidity Management of Selected Public & Private Sector Banks in India

Nayan M. Gadhia

Abstract :

 Liquidity Management measures the ability of Financial Intermediary to meet demand for deposits, withdrawal and other cash outflows. Financial Intermediaries are those middle men who transact in financial 

instruments between two parties. Public sector banks are typical Financial Intermediaries; it also includes Investment 
banks, Insurance companies, mutual funds, okers, dealers and pension funds. The shares of these banks are listed 
in stock exchanges. In India. As we all know, these financial intermediaries are large players in the money and security 
market and if the liquidity management of these financial intermediaries fails, a lack of confidence prevails in the economy which leads to intolerable inflation. If the Government monetary policies fail to curb inflation, then it weakens the 
economic growth and development in any country. The recent fall in rupee, volatility in oil prices, instability in bullion 
and security markets in India, Sub–Prime crisis in United State, instability of euro in the European Market are examples 
of part of mismanagement of liquidity by banks across the globe and failure of government to manage the monetary 
and Fiscal policies. In this paper, an attempt has been made to explain why such crises arise and how to overcome or 
minimize such occurrences.

Keywords :

Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Nayan M. Gadhia A Study of Liquidity Management of Selected Public & Private Sector Banks in India Indian Journal of Applied Research, Vol.5, Issue : 4 April 2015


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