Search results

INDIAN DEPOSITORY RECEIPTS (IDRs) As per the definition given in the Companies (Issue of Indian Depository Receipts) Rules, 2004, IDR is an instrument in the form of a Depository Receipt created by the Indian depository in India against the underlying equity shares of the issuing company. In an...

DERIVATIVES A derivative is a financial contract that derives its value from another financial product/commodity (say spot rate) called underlying (that may be a stock, stock index, a foreign currency, a commodity). Forward contract in foreign exchange transaction, is a simple form of a...

Basel II Capital Accord The Committee circulated the revised version during June 2004 (called Accord II), for adoption by the Central Banks in different parts of the world according to priorities of the respective central banks. The fundamental objective behind this revision is to further...

ASSET LIABILITY MANAGEMENT What is ALM ? # ALM is a comprehensive and dynamic framework for measuring, monitoring and managing the market risk of a bank. It is the management of structure of balance sheet (liabilities and assets) in such a way that the net earning from interest is maximised...

The Committee on Banking Regulations and Supervisory Practices (Basel Committee) had released the guidelines on capital measures and capital standards in July 1988 which were been accepted by Central Banks in various countries including RBI. In India it has been implement¬ed by RBI w.e.f. 1.4.92...

The BPC relates to detailed procedural rules for entering into transactional relations within the banks. The main objective is that such procedures, especially those in all fraud-prone areas, should be well documented, compared with national and international best practices, experimented with...

It is a centre in which financial institutions join together for the purpose of dealing in financial or monetary assets, which may be of short term maturity or long term maturity. The short term means, generally a period upto one year and the term near substitutes to money, denotes any financial...

Risk defined Banks being financial intermediaries channelise funds through the process of mobilisation and deployment of funds and in this process, they get exposed to different kinds of risks such as liquidity risk, interest rate movement risk, credit risk, foreign exchange risk etc. Risk can...

Securitisation of assets is an addition to the existing channels for recycling of funds by business entities. What is securitisation? It is a process through which the future income or receivables (the money that is to become due in future) of an organisation, are transformed and sold as debt...

Treasury Bills are the instruments of short term borrowing by the Central/State govt. They are promissory notes issued at discount and for a fixed period. These were first issued in India in 1917. Objectives These are issued to raise funds for meeting expenditure needs and also provide outlet...

CROSS SELLING Cross-selling stands for being able to offer to the existing bank customers, some additional banking products, with a view to expand banking business, reduce the per customer cost of operations and provide more satisfaction and value to the customer. For instance, when a bank is...