HDFC Bank India takes up Numerix risk tools
Mumbai based HDFC Bank will use Numerix technology to better control risk
India’s HDFC Bank has chosen to install risk management tools from Numerix, to help consolidate its risk management and reporting capabilities.
Based in Mumbai, HDFC Bank has an estimated 28.5 million customers and currently runs 3,062 branches and 10,999 ATMs across India. The bank will use Numerix’ Portfolio product to manage, monitor and report on market risk exposure for its entire range of portfolios across all asset classes.
The Numerix tool allows the bank to aggregate risk, go into detail on all trades and price and calculate market to model, historical or stressed value at risk, as well profit and loss and back testing for vanilla and OTC derivatives. It is also designed to help the bank to capital charge calculations for Basel III. The system comes with aduit-trail and user authorisation features.
HDFC Bank has said that the ability to accurately price any financial instrument and consolidate trades and positions from multiple sources onto a single platform were the main reasons it chose to work with Numerix. The bank is also due to implement the firm’s counterparty risk tools. Numerix opened a new office in Mumbai to provide local support in 2011.
“We were impressed by Numerix’s strong quantitative team and with the firm’s ability to understand our system requirements,” said Sanmoy Chakrabarti, head of market risk at HDFC Bank. “With Numerix Portfolio we’ve consolidated our risk management and reporting capabilities onto one platform. We look forward to continuing our close relationship with Numerix as the team provides us with the technology and support needed to take our risk management system capabilities to the next level.”
