Treasury is the nerve center of the Bank. All
the inflows and outflows of funds is monitored
by the Treasury. Pricing and marketing of all
wholesale liabilities is done here. ALM forms
one of the important functions of the Treasury.
Trading in Foreign exchange both Proprietary and
on behalf of the customers is undertaken by the
department. Trading in money markets , bonds and
Derivatives is an important function including
risk management.
Proprietary trading in Forex – Spot/Forward
INR & Major Currencies.
Marketing of wholesale corporate forex business.
Structuring and advisory for corporates.
Marketing
and managing foreign correspondent relationships.
Arranging
FX funds for import finance transactions.
Management of Interbank liabilities book
Management of Corporate liabilities book
Management of liquidity gaps in Balance sheet.
Key inputs to ALCO for interest rate risk management.
Trading
in Government Securities.
Trading
in Non – SLR papers.
Responsibility
for correspondent relationships.
Forward Rate Agreements (FRA’s)
Overnight Indexed Swaps (OIS)
Investments in units of Mutual funds.
Investment in Equity IPO.
Forex : Customers (Exporters and Importers)
buy and sell their FX needs from the Treasury
in various currencies depending on their business
exposure. Rates are quoted
by the dealers depending on the amounts and
delivery period. Dealers trade on these
flows from the customers and try to maximize
profits. Besides customer flows dealers
take proprietary position in various currencies
in Spot and Forwards for trading.
Money Market : Dealer maintains statutory requirements
e.g CRR, SLR. Funds are borrowed
and lent as per requirement on overnight basis
(call money) or Term money. Bond
dealer trades in various instruments e.g. Govt
bonds, Corporate bonds, C.Ds, C.Ps,
IRS etc. The dealer takes a view on interest
rate and takes a position accordingly. Funds
are also invested through the Mutual funds and
IPO.
All inflow and outflow of funds monitored by
Treasury.
Trading in Forex , Derivatives, Money markets
and Capital markets.
Correspondent Banking relationships.
Managing interbank and corporate liabilities.
Various
Sub-departments: