[sbinews] SBI group draws up uniform treasury operations policy (Business Standard)
- From: "Rajendra S. Pai" <rs.pai@xxxxxxxxx>
- To: <sbinews@xxxxxxxxxxxxx>
- Date: Tue, 11 Jan 2005 09:32:21 +0530
NOTE: SBINEWS DOES NOT PERMIT CIRCULATION OF ATTACHMENTS. ATTACHMENTS, IF ANY,
CIRCULATED WILL BE ONLY BECAUSE OF VIRUSES. PLEASE,THEREFORE, IGNORE
ATTACHMENTS IF ANY IN SBINEWS MESSAGES
************************************************************************
SBI group draws up uniform treasury operations policy
(Business Standard)
Anindita Dey & Poornima Mohandas / Mumbai January 11, 2005
The State Bank of India (SBI) group is learnt to have worked out a uniform
investment policy for its domestic treasury operations.
According to banking sources, the policy - worked out by the SBI and its
seven associate banks - will take care of investments in equity and debt
market.
Among other things, the newly formed guidelines pertain to uniform risk
adjusted return on the investment portfolio across banks, credit to
investment ratio, equity to investment ratio, debt to investment ratio, cut
off limits in trading either in profit or loss etc.
Earlier, each associate bank used to take its own investment decision based
on the approval of its board.
However, as the State bank group is moving towards an integrated treasury,
an uniform policy will leave enough resources at its disposal so as to take
advantage of the scale and opportunities, said sources.
Sources clarified that details of types and categories of equity or debt or
any other instruments will, however, be the exclusive purview of individual
board and a Chinese wall will be maintained in respective investment
decisions. The objective of uniformity in investment limits and decisions is
to increase the profitability of the entire state bank group.
Sources added that going forward, the group is likely to lay down uniform
financial criteria for credit sanctioning and disbursement. This could be
seen as a precursor to the merger of associate banks with State Bank of
India, they added.
As collated from the annual reports, the total investment portfolio of seven
associate banks and State Bank of India put together comes to around Rs
2,47,773 crore while total advances figure at around Rs 2,20,349 crore.
"With the uniform investment policy, the synergy of the total investment
portfolio will definitely boost returns," said a banking source.
State Bank of India (SBI) and its seven Associate Banks, viz., State Bank of
Bikaner & Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Indore
(SBInd), State Bank of Mysore (SBM), State Bank of Patiala (SBP), State Bank
of Saurashtra (SBS) and State Bank of Travancore (SBT), as a group, are in
the process of putting in place state of the art integrated treasury
solution at its office in Bandra Kurla complex.
The integrated treasury will provide for straight through processing of
front office and back office operations and settlement of transactions,
accounting system based on Indian GAAP and US GAAP, capability of processing
all kinds of transactions in equity, forex, debt, money market and
derivatives market instruments.
Basel II norms as well as statutory compliance, risk weight for capital
adequacy for different treasury products should also be possible, among
other facilities.
----------------------------------------------------------------------
This message is intended only for the use of the Addressee and may contain
information that is PRIVILEGED and CONFIDENTIAL. If you are not the intended
recipient, please erase all copies of the message and its attachments. Any
unauthorized access, usage, reproduction, disclosure of the contents of the
mail and its attachments, without the explicit permission of the Bank is
prohibited and State Bank Of India (SBI) or any of its officials, including the
sender of this mail, would not in any way be liable for the same. SBI accepts
no liability for any damage caused by this e-mail.
----------------------------------------------------------------------
Email From ""Rajendra S. Pai" <rs.pai@xxxxxxxxx>" was security checked by 3.93
version of CxProtect(tm)
On: sify_mta at: 10:39:21, 11-Jan-2005 Tuesday
----------------------------------------------------------------------
***************************************************************************
Mailing list (sbinews@xxxxxxxxxxxxx) related information:
News/articles about SBI and Banking related matters published in the print
media, Internet etc will be circulated through this Mailing List.
The messages in this list will help in improving awareness of SBI and its
activities vis-a-vis the happenings in the Banking industry. This should be of
help to all staff members of SBI, particularly those who are preparing for
promotional written tests/interviews/group discussions. Subscription to this
Mailing List is simple and FREE. Please check the procedure below. Please share
this information with other colleagues/branches that could be interested in
subscribing to this Mailing List.
The messages circulated here should not be deemed to have the official
endorsement of the SBI or any of its employees. The correct factual position
may be ascertained from official sources.
To join this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx
with the word 'subscribe' without the quotes in the subject of the email
message.
To leave this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx
with the word 'unsubscribe' without the quotes in the subject of the email
message.
Archives (old messages) are available for viewing at:
//www.freelists.org/archives/sbinews
Click on the month-year at the lower left corner to view messages posted during
that month.
This is an announcements/newsletter type mailing list i.e. only the Moderator/s
can post messages to the list.
This mailing list is maintained and moderated by Sri. R.S.Pai, currently
working as Chief Manager(IT-Internet Banking), SBI, Corporate Centre, Mumbai.
Visit http://rspai.tripod.com for some useful Banking, Reference and Utilities
Links
Other related posts:
- » [sbinews] SBI group draws up uniform treasury operations policy (Business Standard)
