Asset-Liability Management has evolved as a vital activity for all financial institutions specially banks. The Asset Liability Management Policy encompasses the strategic management of the balance sheet aimed at achieving sustained growth, profitability and solvency. Careful formulation and successful implementation of ALM policies is of utmost importance. Thus the current study examines and compares the practices (of public sector banks, private sector banks and the foreign banks operating in India) regarding ALM policy formulation and implementation. The Sample for the study constituted of 42 Branch Managers, 19 Chief Managers and 14 Zonal Managers from various Public, Private and Foreign banks. The study indicated that all the banks have ALM policy but majority of the respondents were of the view that this policy has been formulated because RBI guidelines required so. Further it appeared that the RBI guidelines, govt. Policy, Legislation etc played more important role in ALM policy formulation. But it is suggested that banks need to adopt ALM policy as an indispensible tool for managing assets, liabilities and risk.