The ALM function comprises management of liquidity, maturity profiles of assets and liabilities and interest rate risks at the Foreign Offices. Activities include monitoring of structural mismatches in liquidity at Foreign offices, capital charge for Market Risk for IBG, conducting stress test on liquidity risk, interest rate risk and forex risk at periodic intervals, formulation and periodical review of ALM Policy for Foreign Offices and allocation of capital to Foreign Offices.
Monitoring of Foreign Exchange Dealing operations and money market operations at our Foreign Offices which include formulation and implementation of guidelines for these activities, setting up of risk control limits and ensuring their adherence with the objective of optimizing of returns while managing the attendant risks.
The main objectives of investment operations at the Banks' Foreign Offices, which are monitored by TMG are (a) compliance with the regulatory requirements of the host country, (b) optimization of profits from investment operations, (c) maintenance of liquidity and (d) temporary deployment of surplus funds until such funds are redeployed in core banking activities. Investment operations are undertaken in accordance with the investment policy for Foreign Offices formulated by IBG and branch specific local regulations, if any.
Treasury Management Group assists Foreign Offices in raising medium and long term resources which include bilateral loans, funding from multi- lateral agencies and syndicated loans. TMG also assists Foreign Offices in raising short term resources by obtaining money market lines and reciprocal lines from other banks
Treasury Management Group undertakes issuance of bonds in Foreign Currency under the Bank's Medium Term Note (MTN) programme as also outside the Programme. This includes raising of funds through issue of Innovative Perpetual Debt Instruments (IPDIs) / Hybrid Tier I (HT I) bond