Fund Management In Dept

In order to facilitate flow of funds from/to branches Treasy may have accounts with MCB,ABL,HBL,NBP and most importantly with Central Bank. Accounts maintained with the banks other than Central bank is because of the fact that Central Bank does not have branches in every city. So the requirements of the branches for receiving/remitting funds from/to Treasury where Central Bank branches are not present are fulfilled through remittances with other banks.

Most importantly the Treasury maintains following types of accounts with Central Bank.

1. Current Account: This is for inflow and outflow of funds in local currency such as through clearing, branch remittances, other transactions and lastly for maintenance of Cash Reserve Requirements. A daily statement of this account is received from central Bank and reconciled from the banks's book on daily basis.
2. SGL Account (Subsidiary General Ledger Account): The Banks/Non banks holding SLR and entitled to open current account with Central Bank are allowed to maintain SGL account with Central Bank. The un-certificated bonds/no paper security is handled through this account. This is book bases clearing and settlement system of accounting and hence knows as Subsidiary General Ledger Accounts. This refers to the process of accomplishing settlement via an entry in a book representing the owernership securities of an investor. Securities under this system are de materialized and as such no physical movement of securities is required in case of change of ownership. The transfer of ownership from one owner to another is completed by debiting/crediting the respective accounts. Weekly balance confirmation is in practice for reconciliation purpose.
3. I.P.S Account(Investment Portfolio Securities): The SGL account holders are eligible to maintain with the Central Bank two SGL accounts one for their own position and another for their respective clients' position i.e. I.P.S.accounts. All the transactions between Central Bank and SGL account holders and also those relating to inter dealer shall be recorded by Central Bank and would be reflected in the two SGL accounts separately under own IPS accounts. Weekly balance confirmation is in practice for reconciliation purpose. The banks at their end maintain SGL accounts having their own position and clients position separately.
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Fund Management

The Treasury of the bank receives from and remits funds to branches of the bank. It is also responsible for investment of excess funds in profitable avenues while ensuring the prudent nature of such transactions and also keeping in view the element of rish and liquidity associated with such transactions.