The ultimate aim of any modern corporate is growth with profit maximization. Growth is the first and foremost characteristic of nature and its products which include modern societies with all their industrial, agricultural and service sectors and above all the research organizations to cater to the needs of primary, secondary and tertiary sectors. Governed by the laws of the universe and nature, societies, markets and above all human life are in the constant churn of development in the realm of creativity and innovativeness.

Liquidity risk is one of the important risks banks face during their operations. The analysis of liquidity profile in the banks needs to be done on both static as well as dynamic basis. This article discusses critical factors to avoid any eventual liquidity crisis. These factors are maturity ladder, core deposit, projected cash flow, management of liquidity sources, contingency plans and asset liability approaches.

Liquidity risk is the risk to earnings or capital arising from a bank's inability to meet its obligations when they come due, without incurring unacceptable losses. In other words, liquidity risk includes the inability to manage unplanned changes in funding sources. Liquidity risk also arises from the failure to recognize or address changes in market conditions affecting the ability of the bank to liquidate assets quickly and with minimal loss in value.

In order to ascertain probable mismatch in assets and liabilities and to avoid an eventual liquidity crisis, it is necessary to capture the account level information both on static as well as on dynamic basis. Liquidity management or say liquidity planning requires information based on time series data wherein the growth in both assets and liabilities can be estimated.

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