Integrated Treasury :

Union Bank of India is having a State of the Art Treasury, which operates at the 3rd floor of the Bank's Central Office building at Nariman Point, Mumbai. In conformity with the latest treasury management concept, the Bank has fully integrated its treasury operations and the Treasury in its present form operates simultaneously in all the financial markets viz, Money Market, Debt Market, Capital Market, Foreign Exchange Market & Derivatives Market. The Treasury is equipped with an upgraded software system, supported by latest information and communication technologies and manned by a select team of trained, experienced and dedicated officers.

Domestic Operations :

Main objective of the domestic operations in integrated treasury is Liquidity management i.e. optimal deployment of funds both in short term and long term purposes ensuring adequate liquidity.

Apart from activities pertaining to management of funds and liquidity, the domestic wing of Treasury also handles financial instruments like:

• Commercial Papers (CP)
• Certificate of Deposits (CD)
• Government Securities
• Treasury Bills (TB)
• Bonds and Debentures
• Equities and various other instruments

The products and services offered by Treasury cater to the inter-bank market as well as to the corporate customers of the bank. The Bank offers its customers, including firms, companies, corporate bodies, institutions, provident funds trusts, Regional Rural Banks, Urban Cooperative Banks and Non-Banking Financial Companies opportunities to invest in Government Securities as allowed by Reserve Bank of India for non-competitive bidding.

Forex Operations :

Union Bank of India, one of the major Public Sector Banks in India having a correspondent relationship with leading international banks at all major international centers. The bank has entered into Rupee Drawing Arrangements (RDA) International Banks and Exchange Houses in Middle East. The Bank has also introduced a Internet-based ‘Union e-Remit Product’ for NRIs in U.K. and U.S.A. as well as for Exchange Houses in Middle East.

The modern state-of-the-art dealing room at its Integrated Treasury Branch at Mumbai handling exchange business of its clientele. The bank has retained its primacy as a leading market maker both in spot and forward markets, along with foreign exchange swap markets.

The forex dealing desk at the Treasury is provided with all modern communication facilities and is linked to all its authorized branches via Reuters Automated Dealing (RETAD) System, to provide on-line quotes for foreign exchange transactions.

Through its large network of Authorised dealing branches, the bank caters to the foreign exchange needs of its clientele engaged in export and import trade and the Treasury provides rates for conversion of all major world currencies like U S Dollar, Sterling Pounds, Euro, Swiss Francs, Japanese Yen and other exotic currencies. The services to the customers of the Bank include hedging of foreign currency risks by providing forward covers and various derivative products.

The Bank is in a position to deliver its products promptly and efficiently to its NRI customers through select pool of Customers Relationship Managers (CRMs) posted at strategic locations. The range of products includes remittance facilities and acceptance of deposits in Indian Rupees (NRE / NRO) as well as in designated foreign currencies (FCNR). Resident as well as Returning Indians can avail of benefits like Resident Foreign Currency Accounts (RFC).

Union Bank of India also offers derivative products like Interest Rate Swaps (IRS), Forward Rate Agreements (FRA) for hedging interest rate risks and for Currency risks, Currency Swaps, Currency futures and Options.

Mid Office :

A Mid-office operates within the Treasury; the role function of the mid-office is defined to provide suitable control function and MIS. Mid-office supplies information to Treasury Head, Investment Committee and the Top Management on the compliance of various limits fixed for trading transactions.

Remittance Services :

Apart from all above, Treasury also functions as the gateway of transactions for the Real Time Gross Settlement (RTGS) system and main hub for Society for Worldwide Inter-bank Financial Telecommunications (SWIFT) to which banks exchange dealing branches spread across the country are connected. The Treasury has been discharging a prominent role in messaging and remittance arrangements as well. “Union Bullet” utilizing the RTGS gateway, was made available as a convenient user-friendly product for the Bank’s customers. All the CBS branches of the Bank are RTGS enabled.