Axis Bank, one of India's largest private sector banks has dealt its first onshore INR Non Deliverable Derivative trade with a large South based domestic corporate client. Axis Bank is one of the first Indian banks to execute such a transaction, following the recent guidelines issued by the Reserve Bank of India (RBI).
The RBI guidelines dated 6th June 2023, have permitted banks to offer onshore Non Deliverable Derivative Contracts involving INR to resident clients. These contracts will be cash settled in INR.
Commenting on this, Mr. Neeraj Gambhir, Group Executive & Head - Treasury, Markets & Wholesale Banking Products, Axis Bank said, "Axis Bank has taken this opportunity to further strengthen its commitment to innovation and pioneering customer-centric solutions by ensuring that we are able to offer INR NDDCs to our domestic clients. These guidelines have further liberalised the domestic foreign exchange market and are an important step taken by the regulator to bring the hedging activity onshore. The eligible resident entities have been allowed to use Non Deliverable contracts and this should allow them more flexibility in managing their currency risk."
Shares of Axis Bank Limited was last trading in BSE at Rs. 976.40 as compared to the previous close of Rs. 968.90. The total number of shares traded during the day was 240402 in over 8061 trades.
The stock hit an intraday high of Rs. 981.25 and intraday low of 968.10. The net turnover during the day was Rs. 234763026.00.