• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14
  15. 15
  16. 16
  17. 17
  18. 18
  19. 19
  20. 20
  21. 21
  22. 22
  23. 23
  24. 24
  25. 25
  26. 26
  27. 27
  28. 28
  29. 29
  30. 30
  31. 31
  32. 32
  33. 33
  34. 34
  35. 35
  36. 36
  37. 37
  38. 38
  39. 39
  40. 40
  41. 41
  42. 42
  43. 43
  44. 44
  45. 45
  46. 46
  47. 47
  48. 48
  49. 49
  50. 50
  51. 51
  52. 52
  53. 53
  54. 54
  55. 55
  56. 56
  57. 57
  58. 58

Domestic and Mid-Office operations of the Treasury Department of Union bank of India

Extracts from this document...


UNIVERSITY OF MUMBAI A PROJECT ON: Domestic and Mid-Office operations of the Treasury Department of Union bank of India SUBMITTED BY: Mr. BHAVIN. SHETHIA PROJECT GUIDE: Mr. VIVEK MHATRE MASTER OF MANAGEMENT STUDIES YEAR 2008 - 2010 Vivekanand Education Society's Institute of Management Studies & Research, Chembur, Mumbai DECLARATION I, Student of MMS , hereby declare that I have completed the Project on in the academic year The information submitted is true and original to the best of my knowledge. Signature of the Student ACKNOWLEDGEMENTS I express my sincere thanks to our project guide Shri. Vivek Mhatre of Treasury Department of Union Bank of India for giving me the opportunity to work in his department. I am grateful for the technical guidance, help, motivation, suggestion, resources & facilities provided to me for successful completion of my project work in time. I am thankful to Shri. Hemant Joshi, Director of Vivekanand Education Societies Institute of Management Studies and Research for providing me with valuable guidance with regards to project. I am grateful to my parents, without whose support this would not have been possible. I owe special thanks to Mr. Telang for helping me.I would also like to thank Mr S.S. Dixit Mr. A.G Surti Mr Ashutosh Mr. Ajit Hirlekar Mr Omprakash Mr Sandip Mrs Mahrukh Nariman Mr Chandrakumar For the help, guidance and suggestions that helped me to complete my project. ABBREVIATIONS HTM: Held To Maturity AFS: Available For Sale HFT: Held For Trading MTM: Mark to Market SGL: Subsidiary General Ledger RSA: RTGS Settlement Account CBLO: Collateralised Borrowing and Lending Obligation TB: Treasury Bills VaR: Value at Risk CCIL: Clearing Corporation of India Limited RTGS: Real Time Gross Settlement UBI: Union Bank of India OMO: Open Market Operations NDS: Negotiated Dealing System SGL: Subsidiary General Ledger ABSTRACT Treasury is a platform for generating bulk of banks non-interest income by way of dealing in different financial instruments. ...read more.


As the bonds issued are backed by the government of India they are highly secure and considered as risk free. Hence the coupon rates attached to them are low compared to other securities. Instrument features are: 1. Maturity 2. Coupon 3. Principal In the bond markets, the terms maturity and term-to-maturity, are used frequently. Maturity of a bond refers to the date on which the bond matures, or the date on which the borrower i.e. the state or central government has agreed to repay (redeem) the principal amount to the lender. The borrowing is extinguished with redemption, and the bond ceases to exist after that date. Term to maturity, on the other hand, refers to the number of years remaining for the bond to mature. Term to maturity of a bond changes every day, from the date of issue of the bond until its maturity. Coupon Rate refers to the periodic interest payments that are made by the borrower (the issuer of the bond) to the lender (the subscriber of the bond) and the coupons are stated upfront either directly specifying the number (e.g.8%) Coupon rate is the rate at which interest is paid, and is usually represented as a percentage of the par value of a bond. Principal is the amount that has been borrowed, and is also called the par value or face value of the bond. The coupon is the product of the principal and the coupon rate. Typical face values in the bond market are Rs. 100. The bonds can be purchased at premium (at price higher than the par value) or at discount (at price lower the par value) In case of G.Sec the coupon is paid semi-annually. For eg. 6% GS2019Feb This means the coupon rate is 6% and the security will redeem in February 2019. And as the coupons are paid semi-annually the 1st payment of the coupon i.e. ...read more.


It also includes the profit/ loss associated with sale of each security. The report also provides the holding price and the selling price associated with each security sold/ purchased. It also provides the yield of the corresponding deals. The report also gives category vise the total profit/ loss associated with the sales of securities. 9. Dealings in Forex: The report gives the details of the forex operations and the value of Indian Rupee in different currencies. The report also compares the current performance of the treasury branch with the last year's performance and it also gives the forecasted values of for the month. Conclusion/ Recommendations 1. The study gave me an overview of the functioning of a bank's treasury. I learnt about the significance of a treasury department, the objective of a treasury department and its function in the new evolving banking sector. I also learnt about the risk management department and the various kinds of risks that a bank faces. I gained insight into the daily functioning of a treasury department. 2. In addition to the above, I learnt the dynamics of debt markets in India. The reason for issue of securities by the government, the trend in the debt markets, the process of issuance of the various SLR securities etc. In addition I got an insight into the operations of the markets- the auctioning process, allotment of securities, the clearing process etc as well. Overall the study project added to my knowledge about the banking sector considerably. The opportunities and insights I got from being a part of the bank's activities and interacting with the personnel were immense. The recommendations to UBI would be: 1. Integration between the different departments. Because of this the paper work will reduce and it would also avoid multiple entry of same data or operation at different departments. 2. The department was completely dependent on few employees for the some of its integral operations hence absence of such employees affects the treasury operations. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Finance section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Finance essays

  1. Financial analysis of Wipro ltd. The ratio analysis of the company has been derived ...

    * Its means that now company trying to increasing Trading on equity. 5.5.2 Debt-Equity Ratio This ratio is only another form proprietary ratio and establishes relation between the outside long term liabilities and owner funds. It shows the proportion of long term external equity & internal Equities.

  2. Fundamental Analysis of Icici Bank for potential investors.

    Insurance Companies * Individuals, Families & Corporates across India * Non-Resident Indians * Daily turnover in excess of Rs 4 bn * 1,00,000+ clients nationwide * Leading distributor of IPO's Key Locations Mumbai Corporate Office JK Somani Bldg, British Hotel Lane, Bombay Samachar Marg, Mumbai-400023 Web Address: www.rathi.com Brokerage &

  1. Project on portfolio management in Mutual Funds. The analysis and advice presented in ...

    Mutual Fund investor is also known as a mutual fund shareholder or a unit holder. Any change in the value of the investments made into capital market instruments (such as shares, debentures etc) is reflected in the Net Asset Value (NAV)

  2. Discuss the validity of the yield to maturity as a measure of relative value ...

    These assumptions are: ? the bond is held until maturity ? the coupons are reinvested at the same yield to maturity ? flat term structure of interest rates, i.e. the market discounts all cash flows irrespective of the date when they are due at the same discount rate.

  1. Hedge funds strategy. This assignment will analyse two hedge fund strategies namely Opportunistic ...

    If almost of types return of the Macro were bigger than the FTSE 100 Index, there was a change with the YTD return. In addition, the YTD of the Macro was 2.6% while the rate of FTSE 100 Index got 3% and the highest YTD return was belong to the S&P 500 TR Index with 11.9%.

  2. financial reporting

    Re-computation Cash flow from operating activities all figures in £000 Cash flow from operating activities Cash received from customers £516,395.00 Cash payment to suppliers & Employees £429,673.00 Other cash operating expenses £44,969.00 Cash generated from operation £41,753.00 Income tax paid £7,936.00 Net cash from operating activities £33,817.00 Workings all figures

  1. Financial Management Essay. the importance of capital structure and the cost of capital in ...

    NATURE While there are three types of market efficiency including operational, allocative and informational efficiency EMH only deals with the third one that refers to the way information is used in the market (Strong, 2009)

  2. A Comprehensive Study of Credit Control in Banking Industries With Special Reference to ICICI ...

    Don't be afraid of telling potential customers and clients your terms. If you are serious about credit control, they must know sooner or later. The chances are that they will respect you as a supplier with a businesslike approach rather than as one 'making up the rules as the game progresses', or, worse still, having no rules at all.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work