| Funds
and Liability Reconciliation. |
| The
Client: |
| State
Bank of India Mutual Fund (SBIMF) is one of the leading Mutual
Fund having 29 Investor Service Centres (ISCs) across the country.
It has a corpus of about Rs 50 billion ($125 million) from approximately
50 different schemes having more than a million investors. |
|
| The
inflow of funds is from their ISC's. The funds collected are
subsequently transferred to their main account at SBIMF corporate
office. Similarly, they issue cheques for dividend, interest,
brokerage and redemption on regular intervals. |
|
| The
Challenge: |
| SBIMF
wanted their investor applications to be processed, and the
statement of account to be dispatched on the same day. This
was possible only on getting credit confirmation from the bank
i.e. the investor's cheques getting cleared and deposited. |
|
| Fund
Reconciliation: |
| The
funds were collected under various schemes through ISC's and
the same was deposited in various banks across the country.
Depending on deposited amount the investor was allotted units
calculated on the prevailing NAV (Net Asset Value) of that day.
To reach the final corpus for the days transaction, for a particular
scheme one had to reconcile all the cleared and uncleared cheques.
|
|
| Liability
Reconciliation: |
| Similar
to fund reconciliation, all cheques issued to investors and
brokers had to be reconciled. Before issuing the cheques one
had to make sure that the required funds were available in the
scheme account. |
|
| The
Solution: |
| Computronics
followed up with SBIMF ISC's to get clearance of wrong credits
and pending applications. Close vigilance of bank accounts of
all schemes led to faster reconciliation. During peak periods
we managed more than a 1000 cheques a day. |
|
| The
Benefits: |
| Due
to Computronics close monitoring of the reconciliation process
SBIMF was able to mobilize and invest their fund in different
securities depending on the scheme features. This also led to
High Net Investors being able to invest and redeem faster. |
|
