Journal of Business & Financial Affairs

Interest Rate Risk - A Comparative Study of Public and Private Sector Banks in India

Abstract

Reeta

The Indian banks are exposed to so many risks like interest rate risk, liquidity risk, credit risk and exchange rate risk which affect the net interest income and profitability of the banks. This paper is aimed at measuring interest rate risk in public and private sector banks in India with the help of gap analysis. It is also found whether there is any difference in the level of interest rate risk in the selected public and private sector banks of India. The findings revealed that both the private sector banks and public sector banks are exposed to interest rate risk.