Money Market Desk

Your money market operations are vital to efficiently and profitably managing your funds while maintaining statutory reserves. HDFC Bank’s Money Market Desk brings the expertise and experience to help your institution maintain Cash Reserves Ratio (CRR) and Statutory Liquidity Ratio (SLR), manage the daily flow of funds and your balance sheet, and trade in debt securities.

Whether you are a mutual fund house, financial institution or primary dealer, you can benefit from HDFC Bank’s capabilities in money market trades. The desk will help you trade in a wide variety of debt instruments, including Government of India Securities, Treasury Bills (T-Bills) and Commercial Paper.

Money market trades help you mitigate interest rate risk and increase returns on your funds.

HDFC Bank’s Money Market Desk helps you trade in a wide range of debt market securities, including:

Government of India Securities

These are Indian government-backed instruments free of credit risk that provide fixed coupon interest half-yearly. You can buy them in the primary or secondary market for tenures ranging from less than a year to up to 20 years. They are available in physical and demat form, and provide reasonably good returns

Treasury Bill

T-Bills are sovereign-backed short-term discounted instruments with maximum tenures of up to 364 days. You buy T-Bills at a discount to the face value, and receive the face value on maturity. T-Bills are highly liquid and deliver attractive returns.

Commercial Paper

These are unsecured promissory notes issued by corporates, primary dealers, satellite dealers and financial institutions. All commercial paper must have a credit rating (P1+ to lowest P2-) from CRISIL. Like T-Bills, Commercial Paper is also issued at a discount to face value. They have a tenure of 15 days to a year and the minimum investment is INR 5 lakh and multiples thereof. CPs are issued in demat form only and bring attractive returns but carry higher risk.

For more details, write to us at  mmdesk.bombay@hdfcbank.com