Funds Management by Banks in India: Solution to a Persisting Optimization Problem

Abstract

In recent times commercial banks in India have started functioning as universal banks. As of now, banks - whether public sector, private sector or foreign, can offer comprehensive financial services under one roof. Their functional diversity encompasses project appraisal, project financing, lease financing, extending working capital loans and quasi-credit facilities like bank guarantees and letters of credit, offering derivative products such as forwards, swaps and options, as well as syndication and consultancy services.