During the year, treasury focused on improving funding efficiency and maintaining adequate liquidity buffers in a changing rate environment. A calibrated approach to liability pricing and deposit repricing supported a reduction in cost of funds, while maintaining a balanced mix across Current Account Savings Account (CASA), retail and wholesale deposits. Liquidity was managed within defined thresholds, with the Certificate of Deposit (CD) ratio maintained in the 88–90% range and Liquidity Coverage Ratio (LCR) consistently above regulatory requirements. Structural liquidity was strengthened through longer-tenor deposits and refinance lines, while contingency funding assessments ensured preparedness under stress scenarios.

Treasury also supported margin stability through active balance sheet positioning. A deficit liquidity strategy was adopted, with surplus funds deployed into higheryielding assets while leveraging lower-cost overnight borrowings to optimise returns. Close coordination with business, risk and finance teams enabled dynamic liquidity assessment and alignment on funding strategy through regular Asset Liability Committee (ALCO) and Funding and Liquidity Management Committee (FLMC) reviews. The focus remains on maintaining liquidity discipline, improving funding efficiency and enhancing returns through prudent balance sheet management.

The Bank also expanded its treasury capabilities through the launch of its Authorised Dealer Category-I (AD-I) business and operationalisation of its treasury Forex Desk for trading and client coverage activities. Nostro arrangements were established in USD, Euro, GBP and JPY, enabling non-trade remittances and foreign currency deposit offerings including FCNR, RFC and EEFC accounts in select currencies. The Bank also commenced mobilisation of FCNR deposits. Trade services are planned to be introduced by FY 2027-28 as part of the Bank’s broader strategy to expand product capabilities and diversify revenue streams.