Mumbai : Axis Bank, India’s third largest private sector bank concluded structured derivative transactions with leading Indian corporates today. These transactions have been permitted under the new RBI guidelines for OTC derivatives which became effective today.
The first of these transactions was executed with Reliance Industries Ltd, which involved the use of Barrier FX options for their currency risk management. The bank subsequently also concluded such transactions with other large corporates like Supreme Petrochem Ltd etc.
“The new guidelines have enabled Axis Bank to offer sophisticated risk management products to its large corporate client base. We expect the usage of these products to grow over time as the market matures and clients get more accustomed,” said Mr. Neeraj Gambhir, Group Executive & Head – Treasury, Markets & Wholesale Banking Products, Axis Bank.