Mumbai, April 5: In a bid to facilitate its dealers to operate from acompetitive environment, the Thrissur-based Dhanalakshmi Bank has shiftedits international banking division (IBD) to Mumbai. The Dhanalakshmi bank'sIBD was hitherto located at Kochi. Shifting the IBD to Mumbai will alsoenable the bank to offer its forex clientele better service andcounselling.Dhanalakshmi bank secured an forex authorised dealer licence in 1997. Allits dealing operations are fully computerised with support services likeReuters Money 2000, business Watch, Hexagon Service from HSBC by which theIBD can operate their NOSTRO account. During 1999, the bank drafted a forexaction plan. Accordingly, nine branches have been identified as "B category"to handle trade finance. The bank has also signed an agreement for rupeedrawing arrangement from Dubai with an Exchange House.
As part of the bank's strategy, it has begun encouraging FCNR(B) deposits inthe light of the fall in forward premiums in dollar. On dollar denominatedFCNR(B) accounts, the bank is paying a higher interest rate of 6.75 per centfor 1 to 3 year period. The rates are being reviewed on a weekly basis.The bank's efforts to encourage FCNR(B) deposits has seen its depositscrossing $6.7 million by the end of March 2000.
The bank has obtained permission for overseas investment of up to $10million and for forex trading permission of up to 5 times the merchantvolume. The bank's forex merchant business has showed a growth of Rs 100crore during 1999-2000.
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