Main Article Content
Asset –liability Management (ALM) plays a very important role in banks and to some extent industries too. As every bank is trying to increase profit and minimize risk which is main motive of banking Industry. Interest Rate Risk (IRR) is a risk that appears when the Net Interest Margin of an organization is affected due to rise and fall in the interest rates. This paper entitled “A Study on Interest Rate Risk of Selected Public and Private sector Banks” designed to measure the Interest Rate Risk of five public sector banks in India, and Five public sector banks in India, by using Gap Analysis Method. This paper attempts to assess the interest rate risk carried by Indian Banks in for a period of ten years i.e. from 2011-2021. From the analysis it is clear that there is a strong and positive relation between interest rate and banks profitability it means that if interest rate increases banks profitability also increases and vice versa.