Rates & Charges
ICICI Bank manages one of the largest Treasuries and offers a complete suite of products including forex services, currency swaps and more.
ICICI Bank offers a wide range of Treasury services and products to its clients, based on client's specific requirements by not only incorporating the best practices followed globally but also by leveraging technology to deliver bespoke solutions and user- friendly experience. The Bank offers various derivative products viz. FX Forwards, Cross Currency and Interest rate swaps, plain vanilla and exotic FX and Interest rate options and Forward Rate Agreements, etc. to various users as permitted by the regulations.
At ICICI Bank, we offer our clients customised hedging and trading solutions, evaluating their business strategically through dedicated Relationship Managers. Along with the regular remittances and plain forwards, ICICI Bank also offers time option forwards and non deliverable forwards in Asian currencies as per the Client’s requirements.
At ICICI Bank, our clients have the advantage of competitive pricing in interest rate derivatives on various benchmark rates and currency derivatives in all G7 currencies.
Interest Rate Swaps
With the focus on providing complete interest rate risk management solutions, we offer a full suite of interest rate derivative products covering various global benchmark rates including LIBOR, EURIBOR and SOR etc. In an interest rate swap, the underlying interest rate is swapped to a fixed rate or another floating rate on the agreed notional in the same currency to hedge the interest rate risk on the underlying liability, e.g. a client who has taken a term loan with USD 6M LIBOR can swap the interest rate to a fixed rate or another floating rate, say USD 3M LIBOR.
Our risk management solution also comprises of various currency swaps to hedge the currency and/or interest rate risks on underlying liability from one currency to other currency, e.g. a client who has taken a JPY loan can eliminate the JPY rate of interest risk and the USD/JPY currency risk together, by doing a USD JPY currency swap.
ICICI Bank offers a vast range of Option products to cater to the diverse risk management requirements of clients. Our product range varies from plain vanilla options to exotic structures, enabling us to provide customisable and effective currency risk management solution to clients. A Currency option is a contract between a buyer and a seller that gives the buyer the right to buy (Call option) or to sell (Put option) an underlying currency at a future date at an agreed price (Strike). The buyer of the option has to pay an upfront premium (price) to the seller. Similarly, an Interest rate option gives the floating rate borrower, the right to place an upper limit on the rate of interest exposure (Cap) or the floating rate lender the right to place a lower limit on the rate of interest exposure (Floor). A Collar is a combination of a bought Cap agreement and a sold Floor agreement, or vice versa.