Global Markets

In today’s banking set up, treasury plays a vital role in boosting bottom line by optimally managing bank’s liquidity, enhancing return on deployment of surplus available and extending a range of foreign exchange related services to the customers. At SBI, these functioning are conducted in an integral manner by the Global Markets Department.

Global Markets Deptt. plays a very critical role in ensuring regulatory reserve requirements as mandated by the RBI from time to time. The department also offers products like derivatives, gold forwards, and portfolio management services and manages bank’s proprietary trading and investment portfolio. The dynamic liquidity management ensures that short term investment portfolio is actively churned to generate better returns. The debt portfolio’s performance, which constitutes a significant portion of Bank’s investment portfolio, depends significantly on interest rate movements and system wide liquidity conditions. However, active management of portfolio ensures that portfolio yield is kept at optimal level and profit is continuously booked.

The equity desk does proprietary trading and also manages strategic investments of the bank. The desk keeps on exploring good investment opportunities to enhance returns while maintaining a reduced risk appetite during uncertain times. The Private Equity and Venture Capital desk invests in capital scarce starts up which offer higher returns with enhanced risks. Being the biggest bank of the country and with the role of a market maker, the Forex desk endeavours to provide the best prices to corporates, ranging from the behemoths to emerging SMEs, both in the Public and Private Sector. In addition, forex treasury facilitates liquidity in the inter-bank market.

In addition to these, the bank also provides Indian Rupee and Foreign Exchange Derivatives to corporates for hedging their interest rate and currency exposures, within the regulatory stipulations. Treasury Marketing Group markets various treasury products offered by the Bank, to its customers to mitigate Exchange Rate Risk /Interest Rate Risk in their exposures. Dedicated Treasury Marketing Officers continuously engage with the customers giving them various inputs about markets as part of the advisory services offered by the Bank.

Portfolio Management Services Section of Global Markets, one of the largest fund managers, is managing terminal benefit funds of various provident fund trusts since 1995. It also manages investments of funds of RRBs sponsored by SBI.