A portfolio is a collection of financial assets such as bonds, closed-end funds, commodities, stocks, cash and cash equivalents, exchange-traded funds, as well as closed-end and exchange-traded funds (ETFs). A portfolio's basis is often viewed as consisting of stocks, bonds, and cash. Portfolio management is the practice of effectively and intelligently managing a bank's asset and liabilities mix. Banks purchase and sell assets that produce income throughout this process. Demand and term deposits, as well as other kinds of deposits, account for a substantial part of a bank's funds. since liberalization, portfolio management become has significant as Indian economy is much relying on banking industry. Therefore, researcher tried to analyzed the various theories of portfolio management being adopted by Indian banking industry along with its major objectives.

KEYWORDS: Portfolio Management, Commercial Bank, Stocks, Bonds, Securities.