XLRI students learn treasury management lessons from HDFC Bank AVP

Mr Mishra was present as a part of their course on Fixed Income Securities. He made an interesting start by showing a few videos to the students to give them a feel of the importance and competitiveness of a bank treasury. He also spoke on the Day in the life of a person managing a Bank Treasury desk and the kind of pressure he faces.

According to India stats, 40% of assets in the Banking sector are into Investments. Treasury, popularly known as the heart of the bank, is an important division in banks as it manages the risks and investments in markets. Hence, treasury has become an inseparable part of a banks strategy to compete in the banking environment.
Mr Mishra talked about the basic necessity for the existence of treasury in a bank.

According to him, with a volatile economy and with the Indian banking sector getting integrated with the rest of the world, the importance of managing risk in banks is unprecedented. Giving a contemporary context to the discussion he discussed the origin and impact of sub-prime crisis on the global banking sector.

He then discussed the way most banks treasuries are structured - and explained to the students about the various divisions like ALCO, trading, institutional sales and various other departments. Emphasizing on the cut throat competition that exists between banks in the market, he said that with such an important role at hand, the manager of treasury has to be able to perform under pressure because a small mistake costs a fortune to the bank and career of the manager.