What is Treasury Management

Collects funds and disburses money.

Managing Funds
Responsibilities fall under the scope of CFO The CFOs responsibilities include capital

management, risk management, strategic planning, investor relations and financial reporting.

Integrated Treasury Department

Domestic Treasury Operations
Make investment in their own account SLR, CRR, CP, CD, TB, Bonds & Debentures, Equities and various other derivaties

Forex Treasury Operations

Conduct operation on behalf of clients Spot and forward markets, foreign exchange swap markets , FCNR and Nostro Account.

Integrated Treasury
Objectives
a) b) c) d)

Meeting reserve requirements Provision for adequate and timely liquidity

Global cash management

Optimizing profit by exploiting market opportunities in forex market, money market and securities market Risk management

a)

Structure of Treasury Department

Function Responsible for

Front office
Mid-Office

Dealing
Risk management, accounting and management information

Back office

Confirmations, settlement and reconciliation

FRONT OFFICE

Dealing

MID OFFICE

BACK OFFICE

settlement MIS

Bank treasury departments

Money market desk
Foreign exchange or FX desk Equities Desk Derivatives Desk

Functions of Treasury Management

Reserve Management & Investment Cash Management

Liquidity & Funds Management

Risk Management Asset liability management

Transfer Pricing
Derivative products Arbitrage

Reserve Management & Investment Meeting CRR/SLR obligations a) CRR 6% b) SLR 25% Appropriate mix of investment portfolio

Cash Management Control & care of the cash assets and liabilities of the organization. Selection of investment products, investment brokers, methods of borrowing, cash management information systems.

Liquidity & Funds Management Analysis of cash flow arising out of asset liability transaction Fund various asset of balance sheet Policy inputs to strategic planning and yield expected in credit and investment. Risk Management Changes in Interest rates Increasing NPAs Increasing level of disintermediation

Transfer Pricing Transfer of funds to related party. Assist in enhancing profits Performance evaluation

Derivative Products Develop Interest Rate Swap and other cross currency derivative products Hedge banks own exposure and also sell to customers
Arbitrage Risk less profits

Treasury Management Services

Improve your receivable collection processes

Increase control and management of your

disbursements Enhance your level of timely and comprehensive information controls Maximize your liquidity management Reduce the potential for fraud and possible monetary losses to your company Provide the most advanced information technology tools available

Thank You