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Treasury operations are segregated under Forex and Corporate Sales, Fixed Income Securities and ALM operations, each headed by a chief dealer. Treasury is entrusted with managing the interest rate risk, liquidity risk and the foreign exchange risk of the Bank. Treasury carries out the inter bank operations of the Bank for management of above risk and also as part of its proprietary trading business. In addition, ALM function is also operationalised by treasury. Treasury also provides support to retail and corporate banking areas in providing its funding requirements and managing the FCY flows arising out of their business.

Core Competencies

• Innovative, custom-tailored Treasury products
• Fully customised Treasury software application
• Competitive rates on the strength of FX resources
• Foreign currency funds from international operations
• Local currency funds from well-established branch network
• Target-oriented work culture
• State-of-the-art technology
• Established and reputable correspondent banks
• Recognised as the best bank in the country

Products and Services

• Foreign exchange dealing
• Forward interest rate swaps and futures trading
• Currency and interest rate swaps
• Forward rate agreements
• Caps
• Floors and collars
• G7 and LKR FX options
• Dual currency deposits and other yield-enhancing structures
• Hedging FX and interest rate risk
• Fixed-income securities trading

Revenue Drivers

The diagram below details the subdivisions which come under the Treasury operations.

 

Treasury made a substantial contribution to the performance of the Bank during the year and recorded a substantial increase in pre-tax profit compared to the last year. However, its pre-tax profit is affected due to certain unbudgeted provisions made on prudential basis during the year.