Published Paper Details:

This study aims to examine the impact of ALM on commercial bank profitability in the Indian financial system. The SCA model was used to compare profitability, as measured by ROA, to balance sheet and macroeconomic explanatory variables. This study chose eight commercial banks from 2014 to 2023. The study's hypotheses state that the rate of return on earning assets is positive and varies by asset, but the rate of cost on liabilities is negative and varies by obligation. The pooled OLS regression analysis revealed that all assets, with the exception of fixed assets, primarily loans and advances, have a positive impact on profitability, while all liabilities, primarily savings and fixed deposits, as well as other liabilities and credit balances, have a significant and negative impact on commercial bank profitability. In terms of macroeconomic variables, the real GDP growth rate reduces commercial bank profitability. As a result, the study suggested that commercial banks focus on improving public awareness in order to mobilise more savings and fixed deposits, which would improve their ability to provide loans and advances to consumers.