Which of the following statement(s) are correct?
A. Asset liability management is a mechanism to address the risk arising due to mismatch of assets and liabilities
B. Non-performing Assets (NPA) must be written off as loss in the financial year in which NPA has been identified
C. Undisclosed reserves are included in capital of backs (Tier II) if they represent accumulation of post-tax profits
D. Bank cannot accept deposits from the public for a period exceeding five years
E. Hybrid debt capital instruments may be included in Tier II capital
Choose the correct answer from the options given below:

Correct option is D

Option (A), (C) and (E) is correct because: -
 Asset liability management is a mechanism to address the risk arising due to a mismatch of assets and liabilities by strategically matching assets and liabilities, financial institutions can achieve greater efficiency and profitability while also reducing risk.
 Undisclosed reserves are included in the capital of banks (Tier II) if they represent accumulation of post-tax profits. They are not encumbered by any known liability and shall not be routinely used for absorbing normal loss or operating losses.
 Hybrid debt capital instruments may be included in Tier II capital as these are the securities such as convertible bonds that have both equity and debt qualities