treasury management in Indian bank
K J Somaiya Institute Of Management Studies and Research
Mumbai
“TREASURY MANAGEMENT IN BANKS”
By
Gaurav Jakhotia
Roll no.:024, PGDM-FS
Under the guidance of
Dr. Pankaj Trivedi
Dept. Head,
Finance,
SIMSR.
K J Somaiya Institute of Management Studies & Research
September, 2013
Overview of Indian Banking System:
The Indian Banking sector is rapidly globalizing, making it important for Indian banks to ensure their practices match those of the best banks in the world. Several Indian banks are pursuing global strategies, as Indian companies globalize and people of Indian origin increase their investments in India. It s observed that n surface level all Indian banks have same profitability but there are dramatic differences in underlying economics. Indian banks have historically had access to superior talent relative to other global banks leading to superior organizational performance on average. The Asset Liability management survey shows that treasury is significant contributor to bank earnings in India. The treasury divisions at Indian banks are integrated profit centers that manage capital market businesses and credit and market risk. It is encouraging to see that several attackers have leapfrogged on this front and are using sophisticated risk management techniques on par with those implemented by global banks. However, risk management practices in public sector banks are at a nascent stage and simply conform to regulatory and compliance measures.
McKinsey’s survey on banking shows that Indian leading banks have done remarkably good in increasing shareholder’s value, allocating capital effectively, and contributing to GDP growth. However, in comparison to international peers, Indian banks could do more to foster financial inclusion and manage intermediation costs.
Measuring Asset Liability Management Performance:
The Asset Liability Management
Mumbai
“TREASURY MANAGEMENT IN BANKS”
By
Gaurav Jakhotia
Roll no.:024, PGDM-FS
Under the guidance of
Dr. Pankaj Trivedi
Dept. Head,
Finance,
SIMSR.
K J Somaiya Institute of Management Studies & Research
September, 2013
Overview of Indian Banking System:
The Indian Banking sector is rapidly globalizing, making it important for Indian banks to ensure their practices match those of the best banks in the world. Several Indian banks are pursuing global strategies, as Indian companies globalize and people of Indian origin increase their investments in India. It s observed that n surface level all Indian banks have same profitability but there are dramatic differences in underlying economics. Indian banks have historically had access to superior talent relative to other global banks leading to superior organizational performance on average. The Asset Liability management survey shows that treasury is significant contributor to bank earnings in India. The treasury divisions at Indian banks are integrated profit centers that manage capital market businesses and credit and market risk. It is encouraging to see that several attackers have leapfrogged on this front and are using sophisticated risk management techniques on par with those implemented by global banks. However, risk management practices in public sector banks are at a nascent stage and simply conform to regulatory and compliance measures.
McKinsey’s survey on banking shows that Indian leading banks have done remarkably good in increasing shareholder’s value, allocating capital effectively, and contributing to GDP growth. However, in comparison to international peers, Indian banks could do more to foster financial inclusion and manage intermediation costs.
Measuring Asset Liability Management Performance:
The Asset Liability Management