A MINI PROJECT ON

“Treasury Function of
SBI Mutual Fund”
Submitted By:-

Rajat Kumar Swain

Stream: MBA

1st year, Section-B

University regd. no.-1006286046

Under the guidance of:-

Prof. Nitya Sundar Nanda.

(Asst. prof. in finance, SAM)

Srusti academy of management

Srusti academy of management, Bhubaneswar, odisha

CONTENTS

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 Page number
Declaration 03
Internal guide certificate 04
Acknowledgement 05
Objective of the study &
06-09
Brief understanding about the topic
Company profile and analysis 10
Observation and suggestion 11
Conclusion 12
Bibliography & webliography 13

DECLARATION

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I Rajat Kumar Swain 1st year MBA student of Srusti Academy of Management do
here by declare that, the mini project report entitled “Treasury Function of SBI
Mutual Fund” is submitted by me as the requirement for mini project is of my
own and it is true to the best of my knowledge.

DATE:

PLACE: BBSR Rajat Kumar Swain

INTERNAL GUIDE CERTIFICATE

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This is to certify that Rajat Kumar Swain is a student of Srusti academy of
management, under BPUT. He has successfully completed his mini project work
on the topic “Treasury Function of SBI Mutual Fund “Under my guidance in
partial fulfillment of MBA programme, under BPUT.

This is an original work of his own and has not been carried out by anyone earlier.

DATE: Prof. Nitya Sundar Nanda

PLACE: BBSR. (Asst. Prof. in finance, SAM)

ACKNOWLEDGEMENT
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 Achieving a milestone for any person is extremely difficult. However, there are motivations,
which come across the curvaceous path like twinkling stars in the sky and make our task much
easier. It becomes my humble and foremost duty to acknowledge all of them.

I am deeply indebted to and express my sincere appreciation and gratitude to prof. Nitya
Sundar Nanda. (Asst. prof. of finance), & H.B Gochhayat (department of finance) SAM.
For providing their valuable guidance and encouragement throughout this mini project for
keeping my morale up and making it possible to complete and submit this project of mine in
time. In addition to allow me to study the mutual fund sector. They provided me in depth details
and enlightened me in the preparation of the study report.

It would be unfair on my part if do not thank my heartfulthanks to my colleagues for their

unstinting help without which this work could never have been accomplished they made me
realized the importance of a team, teamwork and also the leadership skills. I am grateful to all of
them for standing with me and supporting me in this project.

Words cannot be adequately expressed my sense of gratitude and indebtedness to Srusti

Academy of Management for giving me an opportunity.

Rajat Kumar Swain

Srusti Academy of Management

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 OBJECTIVE OF STUDY
The main objective of the study is that, to find out various treasury functions of SBI mutual
fund. The researcher was assigned to SBI mutual fund to find out different treasury functions
implemented there. It was really a great opportunity of getting practical insight in to the
corporate world.

After the analysis of collected data, the main findings of this Study and suggestion are
presented in the report.

BRIEF UNDERSTANDING ABOUT THE TOPIC

About SBI Mutual Funds:-

SBI mutual funds are sponsored by India's largest bank. One of the reasons that these mutual
funds are so popular is because they have a very good track record of getting money for their
investors. Another large contributor to SBI mutual funds is Society General Asset Management
who manages over 500 billion USD around the entire world. Usually endeavors initiated by SBI
mutual funds have paid off for their investors. Their main motto is "Growth through innovation
and stable investment policies."

History
SBI mutual funds were started over twenty years ago. Since then they have built to an investor
base of over 5.4 million people throughout the entire world. SBI mutual funds have come up
with 38 different schemes to increase the wealth of their investors. Fifteen of those have paid off,
increasing the holdings of their investors by a substantial amount. This is one of the highest
success rates of any mutual fund. SBI has also branched out into an offshore fund called the
Resurgent India Opportunities Fund

Function
The purpose of SBI mutual fund is to build the wealth of the investors. This is done through the
different schemes that the bank comes up with. The SBI mutual fund has the same purposes as

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any other mutual fund. The idea is to grow the wealth of investors, in a safe and controlled
environment. SBI mutual fund has been one of the best mutual funds to bring this about for
investors, and almost always performs on a higher level than other mutual funds.

What is treasury function?

Probably the core function of a treasury department at any bank is the measuring, monitoring,
and controlling of interest rate risk (IRR). IRR is the risk that changes in prevailing interest rates
will adversely impact the value of the bank's assets and liabilities.

The actual level of involvement of a treasury department in interest rate risk management varies
by institution, but generally speaking, the department would forecast net interest income (NII)
and measure the sensitivity of NII to changes in rates. Typically the department would employ a
variety of standard and proprietary models to measure this risk.

The output of this analysis would be supplied to the institution's ALCO (Asset/Liability
Management Committee). ALCO is responsible for overseeing a variety of asset and liability
(ALM) activities including the establishment of guidelines for the bank's risk tolerance levels.
The treasury department may further be tasked with ensuring IRR stays within guidelines set by
ALCO by entering into a variety of financial transactions, such as interest rate swaps, futures
contracts, and so on.

There are other functions often housed within the treasury department, including a process
known as funds transfer pricing (FTP). At a high-level, the FTP process centrally manages the
funding requirements of the entire bank in lieu of having each division fund its own balance
sheet.

Additionally, the department may assume responsibility for monitoring the institution's risk
capital levels including the rules set forth in Basel II

Treasury Organization of SBIMF

Structuring treasury operations to meet your company’s business needs is critical in troubled
times and when planning for growth. How many staff does treasury need? What arrangement of

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resources by location will work best? What reporting structure should you use? In the event of a
disaster, how will treasury functions continue? Our decades of experience and comprehensive
knowledge of the treasury field help you answer these questions. Treasury Strategies will assist
in determining you’re:

 Optimal headcount and staffing model

 Proper roles and responsibilities

 Best organizational structure

 More effective backup procedures

Policy and Procedure Review of SBIMF

Outdated, deficient and missing treasury policies can cause confusion and mismanagement
within treasury. Without clear policies, you may needlessly expose your firm to risk.

Precisely drafted, clearly communicated, actionable and up-to-date policies are critical for
governing your firm's treasury operations. Treasury Strategies’ expert teams will help you
review, revise and stress test your policies to:

 Safeguard your firm's financial assets

 Guarantee proper controls

 Establish a solid governance framework

Enable board and management oversight of critical treasury activities

Asset management at SBIMF

Treasury Strategies’ Corporate Practice works with treasury organizations worldwide to optimize
processes, manage risks, strengthen controls and provide support resources. We help our clients
achieve:

 More effective global treasury structures

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  Improved visibility and access to liquidity

 Optimized liquidity management

 More comprehensive risk management

SBI team's depth and experience span all areas of treasury from risk
management to netting and pooling, from global banking structures to FX strategy. Our 25+
years of service has created a wealth of insights to address today’s challenges. Typical
engagements include:

 Process design

 Performance assessment

 Benchmark to industry standards

 Gap analysis RFP processes support

Function of fund managers at SBIMF

Responsible for management of fixed income funds of AMC. Will work closely with the sales,
product development, operations and finance functions to develop and manage fixed income
funds for which he/she is responsible. Key Accountabilities.

1. Responsible for policies and direction of investment management activities.

2. Develops investment strategy, policies and programs to enhance portfolio performance.
3. Track and analyze markets, manage portfolio of funds, take decisions on launching
appropriate funds, buy/sell to hold for the fund.
4. Support Head- Fixed Income in investment management decisions.

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 COMPANY PROFILE

SBI funds management pvt.ltd is one the leading fund houses in the country with an investor
base of over 46 million and over 20 years of rich experience in fund management consistently
delivering value to its investors.SBI Funds Management Pvt. Ltd. is a joint venture
between 'The State Bank of India' one of India's largest banking enterprises, and Society
General Asset Management (France), one of the world's leading fund management
companies that manages over US$ 500 Billion worldwide.

Today the fund house manages over Rs 28500 crores of assets and has a diverse profile of
investors actively parking their investments across 36 active schemes. In 20 years of
operation, the fund has launched 38 schemes and successfully redeemed 15 of them, and in
the process, has rewarded our investors with consistent returns. Schemes of the Mutual
Fund have time after time outperformed benchmark indices, honored us with 15 awards of
performance and have emerged as the preferred investment for millions of investors. The
trust reposed on us by over 4.6 million investors is a genuine tribute to our expertise in
fund management.
SBI Funds Management Pvt. Ltd. serves its vast family of investors through a network of
over 130 points of acceptance, 28 Investor Service Centers, 46Investor Service Desks and
56 District Organizers.SBI Mutual is the first bank Sponsored fund to launch an offshore fund
– Resurgent India Opportunities Fund. Growth through innovation and stable investment policies
is the SBI MF credo.

OBSERVATION AND SUGGESTION

Managing a global treasury is challenging. It’s difficult to manage cash investments and debt
around the world; monitor and mitigate global risks; and transact in unfamiliar markets.

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Various treasury structures such as regional treasury centers or in-house banks are potential
solutions. Drawing on our comprehensive understanding of such operations, Treasury Strategies
helps clients design and optimize treasury structures to achieve:

 Economies of scale

 Improved liquidity

 Greater visibility of cash

 Reduced bank fees

Regional Treasury Centers

Managing payments, liquidity and risk management from a central location may not be the right
solution for your organization. Timing issues, language barriers and local regulatory challenges
may point to a regional solution. We can help you evaluate whether regional treasury centers
make sense for your organization. And if so, we can help you design and implement.

In-house Banking

It’s almost always better to use your own cash to fund operations. In-house banking can support
centralized lending, investment and borrowing activities across an organization. Our expert team
will evaluate whether this makes sense. If it does, we’ll assess your options and help establish or
optimize your in-house bank.

Payment Factories

Centralized processing for payments increases working capital reduces costs and improves
control. We’ll help you determine the value of a payments factory, then establish a factory, and
combine payments operations across the organization to gain economies of scale.

CONCLUSION
A common investor is not familiar with the investment world, and with limited resources of
funds, little bit of analytical abilities will f i n d i t e x t r e m e l y t o u g h t o d i v e r s i f y o n h i s
o w n . F i r s t o f t h i s e n t i r e requirement for exposal to analytical abilities and every investor

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h a s   h i s   o w n   l i m i t a t i o n s . A mutual fund is a secondary investment company which collects
primary funds of limited amount through individual investors
andi n   t u r n   i n v e s t s   t h e m   i n t o   w e l l   d i v e r s i f i e d   p o r t f o l i o   t h r o u g h   i t s various
schemes so as to suit the requirement of every investor. Further due to multiplicity of
schemes an investor can select a mutual fund scheme so as to suit his or her
requirement. These mutual funds offer several advantages to an investor over an own
diversification such as:
1. Reduce amount of investment.
2. No need to do numerical calculations on his own.
3. Transparency in operation.
4. Bound by laws.
5. Availability of a particular scheme so to suit his or her investment objective.

However due to large amount of schemes available in the market now mutual funds are also
not assumed to be free from risk and
guaranteed returns. In other words an investor is advised to select
at least few schemes among the several. A mutual fund adviser can recommend the
investors to invest, based on their requirement. For example, an investor looking for
recurring returns can be advised to go for a dividend based scheme
wherea s   i n v e s t o r s   l o o k i n g   f o r   l o n g   t e r m   c a p i t a l   a p p r e c i a t i o n   c a n   b e advised
to go for growth plan. However mutual funds in general are under performing in the
present scenario because of global meltdown but they are likely to rise in the near future.

And at last I will give many thanks to my respected internal guide for assigning me to making
this project.

This project was basically depended upon

 Secondary data

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 BIBLIOGRAPHY

1. Business standard.

2. Other magazines.

WEBLIOGRAPHY

1. www.ehow.com

2. www.about.com

3. www.autherstream.com

4. www.scribd.com

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