IndusInd Bank has announced the closure of its first set of structured derivative transactions with its corporate clients in India after the Reserve Bank of India permitted complex derivative products with effect from January 3, 2022.
The Bank undertook Swaption and Forex Barrier Options trades with a large corporate client and a large diamond client. The hedges were for Forex and Interest Rate risk management by the clients.
Siddharth Banerjee, Head – Global Markets Group, IndusInd Bank said, “The RBI has revised the extant derivatives guidelines with the objective of promoting efficient access to derivatives while ensuring high standards of governance. This is a step in the right direction and will deepen Indian financial markets. Bank treasuries will play an active role in ensuring governance and in educating clients on the use for structured products as a risk management strategy. Going forward, we anticipate the demand for structured products to grow as clients start using structured derivatives”.
