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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (9634)	11/17/1999 8:10:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

Catholic Syrian Bank starts integrated treasury operations casybank.com Our Bureau (Bl) KOCHI, Nov. 17 RESPONDING to the phased liberalisation of the financial markets and greater integration between forex securities and money markets in India, the Thrissur-based Catholic Syrian Bank has integrated its treasury operations. The bank's domestic treasury department dealing in money, capital and securities market operations had been functioning from Thrissur, while the forex treasury dealings in foreign currency funds of NRIs and overseas investment operations had been operating from Kochi. Inaugurating the integrated treasury operations at Kochi, Mr. R.P. Joshua, Chairman of the bank, said that until 1991, the forex and money markets in India were operating in isolation and there was virtually no relationship between these markets. However, since the initiation of reforms, these markets have been gradually integrating. The RBI has also introduced a number of measures such as deregulation of interest rates, liberalisation of exchange control regulations relating to foreign investment in India, freedom to invest in overseas market, converting foreign currency and using the rupee resources for local lending/investment operations, freedom given to the banks to manage the surplus in their foreign currency accounts through overseas investments, allowing banks to invest up to $10 millions in overseas money market instruments, etc. These measures have necessitated faster integration of treasury operations between forex securities and money markets in India. In order to take advantage of the emerging scenario, several public sector banks and new generation private sector banks have combined their domestic and forex treasuries. Being the first to do so among Kerala-based banks, Mr. Joshua was confident that it will help the bank improve its bottomline, given the high level of activity that the bank had in both forex and money markets. This is also expected to offer a better price to both the depositors and borrowers of the bank as well as in enhancing the shareholders value. The bank which has been a very active player in the forex market has now installed a Reuters Dealing screen in the international banking division. With this, the dealing room is fully equipped to cash in on opportunities available in the forex market.