IndusInd Bank on Friday announced the closure of its first set of structured derivative transactions with its corporate clients in India.
This comes after the Reserve Bank of India permitted complex derivative products effective January 3 this year.
“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,” it said in a statement.
Siddharth Banerjee, Head, Global Markets Group, IndusInd Banksaid the lender expects the demand for structured products to grow as clients start using structured derivatives.
“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,” he said.