Treasury Services

Treasury ServicesThe treasury department of a bank monitors the in-and out-flow of funds. One of the important functions of the treasury service is asset liability management. This department manages all dealings in foreign exchange, both proprietary and on behalf of the customers. Money markets, bonds, derivatives and risk management are also important sectors that the treasury takes care of.

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ADCB IndiaTreasury offers the following

  • Foreign Exchange

    Spot Contracts
    Spot contracts hedge the receivables and payables of corporate clients at a fixed rate for delivery in two business days.

    Forward contracts
    Forward contracts hedge the underlying exposure of the corporate client by buying or selling one currency against another, at a fixed rate, for delivery on a specific future date or during a certain period (Onshore Interbank Forward Market is liquid for a period of one year).

  • International Business

    International inward/outward remittances

    Transfers are made via SWIFT, a safe, secure and efficient method of transferring funds.

  • Money Markets (MM)

    Buy and sell GOI securities as well as other MM derivatives.

    ADCB India offers the following products

  • Rupee Treasury

    The Rupee treasury carries out the Bank's rupee-based treasury functions in the domestic market. Broadly, these include asset liability management, investments and trading. The Rupee treasury also manages the Bank’s position regarding statutory requirements such as the cash reserve ratio (CRR) and the statutory liquidity ratio (SLR), as per the norms and rules of the Reserve Bank of India.

  • Forex Treasury (FX)

    Spot contracts

    Spot foreign exchange
    A spot contract is a binding obligation to buy or sell a certain amount of foreign currency at the current market rate for settlement in two business days. To enter into a spot deal, you will need to advise us of the amount, the two currencies involved and the currency you would like to buy or sell.

    Purpose
    Companies involved in international trade might need to make or receive payments in a foreign currency. A spot contract allows a company to buy or sell foreign currency on the day it chooses to deal.

    Settlement
    A spot deal will be settled (the physical exchange of currencies) two working days after the deal is struck. The difference between the deal and settlement date reflects both the need to arrange the transfer of funds and the time difference between the currency centres involved.

    Summary
    Forecasting exchange rates is a complex task. For a company to use only the spot market for its foreign currency requirements may be a high-risk strategy considering exchange rates could move sharply in a short period of time. For example, if you placed an order for raw materials from the UAE for payment in three months' time and use the spot market to get the currency to paythe invoice when it becomes due, your company could lose a significant amount of money if the exchange rates are not favourable for you.

    Key facts

    • Minimum deal size: none
    • Maximum deal size: none
    • Currency pairs: any currency pair.
  • Forward contracts

    A forward exchange contract (or forward contract) is a binding obligation to buy or sell a certain amount of foreign currency at a pre-agreed rate of exchange on a specific future date. To take on a forward contract, you need to advise us of the amount, the two currencies involved, the expiry date and whether you would like to buy or sell the currency. It is possible to build in some flexibility to allow the purchase or sale of the currency between two pre-defined dates rather than having a single maturity date.

    Purpose
    The benefit of a forward contract is that you can budget at a guaranteed rate of exchange, thereby overcoming any element of uncertainty associated with importing or exporting in a foreign currency.

    Pricing
    The price of a forward contract is based on the spot rate at the time the deal is booked, with an adjustment representing the interest rate differential between the two currencies concerned. For example, a company needs to buy in UAE dirham in three months' time and enters into a forward contract when the UAE interest rates are higher than those in India. In order to meet our obligation under the contract, ADCB India will buy UAE dirhams now, paying for them in Indian rupees. We then pass on the benefit of the higher rate of interest we earn on the dirhams to you. The adjustment to the spot rate means that the forward contract rate might be more favourable than a spot deal rate. The reverse would apply if UAE interest rates were lower than Indian rates.

    Summary
    A forward contract is an obligation to buy or sell a certain amount of foreign currency on a pre-determined date. Even if your requirements change over the term of the contract, you are still obliged to the deal.

    A forward contract commits you to the deal at a specific rate and you are not in a position to benefit from any favourable movements in exchange rates between the dates of booking the contract and completing the deal.

    Key facts

    • No premium is payable
    • Minimum deal size: None
    • Maximum deal size: None
    • Period: Up to one year
    • Credit line: A credit line is required for forward contracts
    • Currency pairs: Any freely convertible currency pair.
Correspondent Banks – Nostro a/c of ADCB India
Standard settlement instructions
Currency Account with SWIFT Code Account Number
AED ABU DHABI COMMERCIAL BANK
Abu Dhabi, UAE
ADCBAEAATRY 100372005001
CHF CREDIT SUISSE AG
Zurich, Switzerland
CRESCHZZ80A 0946090-93
EUR THE ROYAL BANK OF SCOTLAND N.V.
Frankfurt, Germany
ABNADEFFFRA 56.02.415/106
IBAN: DE8850230 4005602415106
GBP HSBC BANK PLC
London, United Kingdom
MIDLGB22
SORT CODE 40-05-15
00261896
JPY THE ROYAL BANK OF SCOTLAND PLC
Tokyo, Japan
ABNAJPJT 07290000001024000
USD JP MORGAN CHASE BANK N.A.
New York, USA
CHASUS33
ABA021000021
811165406

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Mumbai Office

75 Rehmat Manzil,
Veer Nariman Road, Churchgate,
Mumbai 400020 - INDIA
Tel : +91 22 39534100
Fax : +91 22 39534106

Bengaluru Office

Citi Centre, 28 Church Street,
Bengaluru 560001 - INDIA
Tel: +91 80 25582000
Fax:+91 80 25582323

Head Office

Abu Dhabi Commercial Bank Building,
Shk Zayed Street,
P. O. Box: 939,
Abu Dhabi, United Arab Emirates
www.adcb.com