INTRODUCTION TO TREASURY MANAGEMENT

Submitted by Group 1 Sunay Kasliwal (PGDFM/11/002) Tronudeep Gharwalia (PGDFM/11/004) Karishma Aggarwal (PGDFM/11/006) Simpy Goel (PGDFM/11/008) Ankur Tagra (PGDFM/11/010) 1

INDEX
Concept and objectives of Treasury

Management Functions of Integrated Treasury Process of Globalisation Evolving role of Treasury as profit centre Organization of Treasury
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FUNCTIONS OF TREASURY MANAGEMENT

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Functions of Treasury Management

Reserve Management & Investment Cash Management Liquidity & Funds Management Risk Management Asset liability management Transfer Pricing Derivative products Arbitrage
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Functions of Treasury Management

MACRO LEVEL

MICRO LEVEL

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Reserve Management & Investment

Meeting CRR/SLR obligations
a) CRR 4.75% b) SLR 23%

Appropriate mix of investment portfolio

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Cash Management
Control & care of the cash assets and

liabilities of the organization.

Selection of investment products,

investment brokers, methods of borrowing, cash management information systems.

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Liquidity & Funds Management

Analysis of cash flow arising out of asset

liability transaction.
Fund various asset of balance sheet.
Policy inputs to strategic planning and

yield expected in credit and investment.

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Risk Management
Changes in Interest rates. Increasing NPAs.
Increasing level of disintermediation.

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Transfer Pricing
Transfer of funds to related party. Assist in enhancing profits.
Performance evaluation.

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Derivative Products
Develop Interest Rate Swap and other

cross currency derivative products.

Hedge banks

own exposure and also sell to customers.

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Arbitrage
Risk less profits

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TREASURY MANAGEMENT IN ORGANIZATION

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THANK YOU
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