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 w.e.f. 03 January 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

IndusInd Bank has been a front runner in the derivatives space in India and was amongst the first 4 banks who undertook INR Swaptions in the Institutional Inter Dealer market on 17 August 2021.

It was also amongst the first set of banks who undertook Modified MIFOR trades in INR on 20 December 2021. The Bank has also undertaken Non Deliverable INR Forex Option hedges with its International corporate client base via its IFSC Banking Unit (IBU) located at the GIFT City SEZ.

IndusInd Bank is the first and only Indian Bank who is an active market maker in Non-Deliverable Forwards and Forex Options space in the Institutional Inter Dealer Broker Market for INR in Singapore and London via its IBU.

Courtesy: BS, FPJ, HBL.