IndusInd Bank closes first set of Structured Derivative Transactions with leading corporates

Mumbai, January 7, 2022:  IndusInd Bank has announced the closure of its first set of structured derivative transactions with its corporate clients in India after the Reserve Bank of India permitted complex derivative products w.e.f. January 3, 2022.

The Bank undertook Swaption and Forex Barrier Options trades with a large corporate client and a large diamond client. The hedges were for Forex and Interest Rate risk management by the clients.

Speaking about the development, Mr. Siddharth Banerjee, Head – Global Markets Group, IndusInd Bank said, “The RBI has revised the extant derivatives guidelines with the objective of promoting efficient access to derivatives while ensuring high standards of governance. This is a step in the right direction and will deepen Indian financial markets. Bank treasuries will play an active role in ensuring governance and in educating clients on the use for structured products as a risk management strategy. Going forward, we anticipate the demand for structured products to grow as clients start using structured derivatives”.

IndusInd Bank has been a front runner in the derivatives space in India and was amongst the first 4 banks who undertook INR Swaptions in the Institutional Inter Dealer market on August 17, 2021. It was also amongst the first set of banks who undertook Modified MIFOR trades in INR on December 20, 2021. The Bank has also undertaken Non Deliverable INR Forex Option hedges with its International corporate client base via its IFSC Banking Unit (IBU) located at the GIFT City SEZ.

IndusInd Bank is the first and only Indian Bank who is an active market maker in Non-Deliverable Forwards and Forex Options space in the Institutional Inter Dealer Broker Market for INR in Singapore and London via its IBU.

About IndusInd Bank

IndusInd Bank, which commenced operations in 1994, caters to the needs of both consumer and corporate customers. Its technology platform supports multi-channel delivery capabilities. As on September 30, 2021, IndusInd Bank has 2,015 Branches/Banking Outlets and 2,886 ATMs spread across 760 geographical locations of the country. The Bank also has representative offices in London, Dubai and Abu Dhabi. The Bank believes in driving its business through technology. It enjoys clearing bank status for both major stock exchanges - BSE and NSE - and major commodity exchanges in the country, including MCX, NCDEX and NMCE. IndusInd Bank was included in the NIFTY 50 benchmark index on April 1, 2013.

RATINGS

Domestic Rating(s):

• CRISIL AA + for Infra Bonds program
• CRISIL AA for Additional Tier I Bonds program
• CRISIL A1+ for certificate of deposit program / short term FD programme
• IND AA+ for Senior bonds program by India Ratings and Research
• IND AA for Additional Tier I Bonds program by India Ratings and Research
• IND A1+ for Short Term Debt Instruments by India Ratings and Research

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