House of the Year, India: ICICI Bank
HERE The Bank continued to capitalize on the ongoing deregulation trend in the Indian derivatives market, positioning itself as a market leader in treasury solutions with an extensive international branch network and innovative digital strategies.
In June of last year, the Reserve Bank of India (RBI), the country’s central bank, began allowing Indian banks to trade undeliverable dollar-rupee futures (ACNPs), a business segment previously dominated by foreign multinational banks. This move would help curb the wild swings of the rupee and further develop the domestic foreign exchange market. Multinational companies would also save on hedging costs in a context of limited speculative betting.
From day one and through its Singapore branch, HERE Bank was the first Indian bank to deal in dollar-rupee ACNP contracts for a large information technology company. While the company had previously dealt with several foreign banks, HERE was the first Indian bank the company chose for long-term hedging. The entity in question has a significant customer base in the we and Europe, but the majority of its workforce is in India.
âThis is a testament to the deep reach and presence of our bank not only in India but across multiple countries, enabling seamless product coverage and delivery in all geographies,â said Akash Chopra, Head of Sales and Marketing. ‘origination, markets group, at HERE Bank.
Second biggest ACNP global market
According to 2019 data from the Bank for International Settlements, the Indian rupee ACNP The market was the second in the world in terms of average daily turnover and was larger than the onshore futures market. The discovery prompted Indian regulators to change the country’s rules to deepen domestic financial markets.
âWhen the dollar-rupee was volatile beyond local bank hours, there was no way Indian banks could cover it. ACNP had started to dominate the global currency market with volumes exceeding onshore volumes and this was the trigger for the RBI make changes to allow the relocation of this market by allowing access to it for Indian banks, âsaid Chopra.
With the first business leading by example, HERE The bank saw its dollar-rupee ACNP The offer of contracts to non-residents is rapidly expanding to secure a high market share and early domination in this space with the integration of large and diversified institutional clients.
This is a testament to the deep reach and presence of our bank not only in India but in several countries, enabling transparent coverage and product delivery in all geographies.
Akash Chopra, HERE Bank
âOur hedging solution through undeliverable derivatives is better in terms of pricing and offshore structuring capacity,â says Chopra. He cites a large treasury sales team of over 220 people across 35 locations in India and seven overseas centers, which is unmatched among his domestic banking peers. âWe also have a very different client base, including conglomerates, private equity players, hedge funds and fund managers. “
HERE believes India’s deregulation trend will continue. New guidelines on interest swaptions and final corporate bond credit default swap rules are just a few of the things on the bank’s radar. It is constantly refining its product structuring capabilities, risk controls, system updates and customer communications to capture another market first.
“RBI has set a forward-looking agenda for all of us by moving to principle-based regulation. We work tirelessly to prepare our systems and have the knowledge and policies to ensure that we can run our products once they get regulatory approval, âsaid Sravan Kumar, Head of Market Making, treasury products and technology initiatives at HERE Bank.
The bank is also proud to establish the Market Development Program in India, as it serves on the boards of directors of industry bodies such as the Foreign Exchange Dealers’ Association of India, the Fixed Income Money Market and Derivatives Association of India and the Clearing Corporation of India. .
HERE The Bank has also bolstered its digital capabilities over the past 18 months, a momentum that has accelerated as the Covid-19 pandemic has set in.
In January of last year, Indian regulators authorized cross-border remittances through the mobile channel. The bank then sensed an opportunity that would benefit its treasury products and technology initiatives. In less than six months, HERE The bank launched its âForex-on-the-moveâ solution for businesses to lock in FX tariffs on mobile devices.
The bank has also revamped its iTreasury platform, which is an integrated portal that corporate users can access by logging into corporate online banking services – providing pre-trade, on-trade and post-trade services. bank trading under one roof.