Master of Business Administration - MBA Semester 4Subject Code
Treasury Management 4 Credits
(Book ID: B1311)
Assignment Set- 1 (60 Marks)Q.1 Explain how organization structure of commercial bank treasuryfacilitates in handling various treasury operations.Ans:-
The treasury organisation deals with analysing, planning, and implementingtreasury functions. It deals with issues of profit centre, cost centre etc. Theorganisations managing interfaces with treasury functions include intragroupcommunications, taxation, recharging, measurement and cultural aspects.
Structure of treasury organisation
This group includes budget policy planning division, industrial andenvironmental division, common wealth state relationships, and social policydivision.
This group deals with economic sector of the organisation. Itincludes domestic and international economic divisions, macroeconomic policyand modelling division.
This group is concerned with the taxes in an organisation. It includesbusiness tax division, indirect tax, international and treaties division, personal andincome division, tax analysis and tax design division.
This group mainly deals with selling of products in the competitivemarket. It includes competition and consumer policy, corporations and financialservices policy, foreign investments and trade policy division.
•Corporate services –
This group deals with overall management of thetreasury organisation. It includes financial and facilities division, human resourcedivision, business solutions and information management division.
Treasury management in banks
In recent days, most of the Indian banks have classified their business into twoprimary business segments like treasury operations (investments) and bankingoperations (excluding treasury).
The treasury operations in banks are divided into:
•Rupee treasury –
The rupee treasury carries out various rupee based treasuryfunctions like asset liability management, investments and trading. It helps inmanaging the
in terms of statutory requirements like cash reserve