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This is an archive article published on February 5, 1998
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SBI treasury, forex units mergeMUMBAI -- Drqwing curtains to the three year-old controversy, the State Bank of India has merged its treasury...
February 5, 1998 12:00 AM IST
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SBI treasury, forex units merge
MUMBAI 8212; Drqwing curtains to the three year-old controversy, the State Bank of India has merged its treasury division 8211; dealing in the call and gilts market 8211; with the foreign exchange cell. The integrated treasury is reporting to the bank8217;s chief financial officer CFO P K Bhattacharjee.
State Bank chairman MS Verma has confirmed the development. quot;There is no alternative but to go for integrated treasury operations. We have merged all treasury operations and are in the process of setting up a unified dealing room,quot; a senior State Bank executive said. The bank has been able to successfully combat the recent liquidity crisis by virtue of the integrated treasury.
Deposit rates down
MUMBAI: Bank of America BankAm and the Bank of Nova Scotia on Wednesday slashed their short-term deposit rates by a whopping 300-350 basis points. signalling a return of liquidity into the system. This is the first round of a downward revision of deposit rates by thebanks.
The short-term rates were jacked up last month after the Reserve Bank of India8217;s RBI8217;s announcement of a series of measures, which sucked out liquidity from the system. The RBI8217;s objective was to harden domestic interest rates to curb speculation in the foreign-exchange market.quot;The industry will now witness a fierce deposit-rate war. Some of the banks, particularly the foreign banks, will be forced to pare their deposit rates to protect their spreads,quot; said a senior banker.
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