The treasury of the bank is a very active participant in the inter-bank market. It mobilises resources for the bank from domestic as well as international markets and also manages the surplus funds available by deploying it profitably. The treasury is divided into foreign exchange and money market desks. The foreign exchange desk is supported by the sales desk, which interacts with the corporate clients keeping them abreast of the latest happenings in the international markets and advising them on risk management tools available and the best strategies for hedging their exposures.
Foreign Exchange Desk
Foreign Exchange Desk is bifurcated into Inter-bank & Corporate Desk. The corporate desk interacts with the branches and clients for trade and other related transactions, while the Inter-Bank desk undertakes the cover operations for such transactions. The Inter-bank desk also trades in currencies on bank’s account.
Spot Contract
This facility helps a corporate hedge it’s near term foreign currency exposure upto two working days without any additional cost.
Forward Contract
Using this facility a corporate can hedge his medium and long term currency exposures at a nominal cost. This helps the corporate to lock into a specific exchange rate for any currency irrespective of the market movement in that currency thus ensuring stability in a volatile market.
Derivatives Desk
IndusInd Bank Ltd. offers following derivative instruments for management of both currency and interest rate risk.