Fund Based Operations
o Fund Based Operations
Throughout equity, term deposits from institutional investors and credit lines FCIBundertakes various investment and financing activities these include;
· Syndication/ Direct Financing Activities
FCIBprovides short-term and long-term finance facilities to meet the capex andworking capital Requirements of commercial and industrial sector borrowers.Financing activities are done mostly through syndication, against securities ofmortgage & hypothecation charge on fixed assets, receivables, demandpromissory notes, etc. of the customers.
· Treasury/ Money Market Activities
A separate division for treasury operations isactive in the money market. It makes short-term placements utilizing FCIB’s ownresources and also seeks to exploit arbitrage opportunities available in themarket. The treasury department also invests in equity and non-equity investment instruments.
· Equity Investments/Trading
FCIB seeks to optimize its earnings from thestock exchange through a combination of capital gains from trading and dividendon its investments portfolio. However, the size of FCIB’s equity portfolio issmall as it adheres to a conservative approach in making investments in equity market.
· Fixed Income /Debt Securities
FCIB participates in Initial Public Offerings(IPOs) and underwrites rated TFCs. These instruments not only contribute to itsrevenue but are also used as underlined securities for generating short-termfunds from the market.