Society general


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Society general

  1. 1. The French Network comprises three structures-Societe Generale, Credit du Nord with its six regional banks and Boursorama (Online Banking). They have a diversified customer base of more than 10.7 million individuals and more than 500,000 businesses and professionals. The International Retail Banking commands leading positions in Central and Eastern Europe, the Mediterranean Basin, Sub-Saharan in Africa and the French territories and more recently in Asia, namely China and India. It has 3,817 branches in 37 countries and 41 entities. The Specialised Financing & Insurance division operates in 46 countries with over 30,000 employees. Europe continues to be its main activity base. Global Investment Management and Services encompasses:  Asset Management with Amundi, (a partnership with Credit Agricole Asset Management)  Private Banking with Societe Generale Private Banking  TCW Securities Services with Societe Generale Securities Services  Derivatives brokerage with Newedge Corporate & Investment Banking is present in 33 countries with 12,000 employees offering its clients bespoke financial solutions combining innovation, advice and high execution quality in three areas of expertise: Investment Banking, Financing and Market Activities. The major divisions are Global Markets and Financing & Advisory Services. Societe Generale has been present in India since 1978 with the establishment of a Representative Office in Delhi. In 1985 following the closure of the Representative Office, Societe Generale opened its first full fledged banking branch in Mumbai and a second branch in Delhi in 1993. Operating under the license of a Scheduled Commercial Bank in India, Societe Generale provides a wide range of banking facilities and services from Customer Deposits and Plain Vanilla Working Capital Loans, Term Loans; Trade Finance and Corporate FX to more sophisticated Investment Banking products like Structured Finance, Derivatives etc. Other services like Correspondent Banking, Offshore Energy Hedging and Commodity Derivatives are made available to Indian banks and clients. Societe Generale refers to the most recent version of the AFEP-MEDEF Corporate Governance Code for listed companies (April 2010).
  2. 2. The bank’s long term rating stands at Aa2 at Moody’s, A+ at Fitch and A+ at Standard & Poors. commercial Banking Trade Finance & Correspondent Banking Corporate & Investment Banking Structured Finance Derivatives & Money Markets INR & FX loans Documentary Credits Export Credit FX & Interest Rate Solutions Tenors – five days to five years Bank Guarantees Asset Based Finance Commodity Hedging Fixed/Floating Rates Remittances Acquisition Finance Money Market Operations Pre/Post Shipment Finance Documentary Collections Commodity Finance Bond & Govt. Securities Trading Our Treasury Products revolve around  Plain Vanilla FX Forwards, Swaps, Currency etc  Structured Derivatives & Money Market Products  FX & Interest Rate Solutions  Money Market Operations  Bond & Govt. Securities Trading  Société Générale S.A. (SocGen) is a French multinational banking and financial services company headquartered in Paris. The company is a universal bank split into three main divisions, Retail Banking and Specialized Financial Services (particularly in France and Eastern Europe), Corporate and Investment Banking (Derivatives, Structured Finance and Euro Capital Markets) and Global Investment Management and Services.  Based on 2012 data Société Générale is France's third largest bank by total assets[2] and the no. 8 bank in Europe.[3] Société Générale has been ranked as one of the world's most admired companies to work in.[4]  Société Générale is one of the oldest banks in France. Founded in 1864
  3. 3.  In finance, a swap is a derivative in which two counterparties exchange cash flows of one party's financial instrument for those of the other party's financial instrument. The benefits in question depend on the type of financial instruments involved. For example, in the case of a swap involving twobonds, the benefits in question can be the periodic interest (coupon) payments associated with such bonds. Specifically, two counterparties agree to exchange one stream of cash flows against another stream. These streams are called the legs of the swap. The swap agreement defines the dates when the cash flows are to be paid and the way they are accrued and calculated.[1] Usually at the time when the contract is initiated, at least one of these series of cash flows is determined by an uncertain variable such as a floating interest rate, foreign exchange rate, equity price, or commodity price.[1]  The cash flows are calculated over a notional principal amount. Contrary to a future, a forward or an option, the notional amount is usually not exchanged between counterparties. Consequently, swaps can be in cash or collateral.  Swaps can be used to hedge certain risks such as interest rate risk, or to speculate on changes in the expected direction of underlying prices.  Swaps were first introduced to the public in 1981 when IBM and the World Bank entered into a swap agreement.[2] Today, swaps are among the most heavily traded financial contracts in the world: the total amount of interest rates and currency swaps outstanding is more thаn $348 trillion in 2010, according to Bank for International Settlements (B  The most common type of swap is a “plain Vanilla” interest rate swap. It is the exchange of a fixed rate loan to a floating rate loan. The life of the swap can range from 2 years to over 15 years. The reason for this exchange is to take benefit from comparative advantage. Some companies may have comparative advantage in fixed rate markets, while other companies have a comparative advantage in floating rate markets. When companies want to borrow, they look for cheap borrowing, i.e. from the market where they have comparative advantage. However, this may lead to a company borrowing fixed when it wants floating or borrowing floating when it wants fixed. This is where a swap comes in. A swap has the effect of transforming a fixed rate loan into a floating rate loan or vice versa. For example, party B makes periodic interest payments to party A based on a variable interest rate of LIBOR +70 basis points. Party A in return makes periodic interest payments based on a fixed rate of 8.65%. The payments are calculated over the notional amount. The first rate is calledvariable because it is reset at the beginning of each interest calculation period to the then current reference rate, such as LIBOR. In reality, the actual rate received by A and B is slightly lower due to a bank taking a spread.  Currency swaps[edit]  Main article: Currency swap  A currency swap involves exchanging principal and fixed rate interest payments on a loan in one currency for principal and fixed rate interest payments on an equal loan in another currency. Just like interest rate swaps, the currency swaps are also motivated by comparative advantage. Currency swaps entail swapping both principal and interest between the parties, with the cashflows in one direction being in a different currency than those in the opposite direction. It is also a very crucial uniform pattern in individuals and customers.  Commodity swaps[edit]  Main article: Commodity swap
  4. 4.  A commodity swap is an agreement whereby a floating (or market or spot) price is exchanged for a fixed price over a specified period. The vast majority of commodity swaps involve crude oil.  Credit default swaps[edit]  Main article: Credit default swap  A credit default swap (CDS) is a contract in which the buyer of the CDS makes a series of payments to the seller and, in exchange, receives a payoff if an instrument, typically abond or loan, goes into default (fails to pay). Less commonly, the credit event that triggers the payoff can be a company undergoing restructuring, bankruptcy or even just having its credit rating downgraded. CDS contracts have been compared with insurance, because the buyer pays a premium and, in return, receives a sum of money if one of the events specified in the contract occur. Unlike an actual insurance contract the buyer is allowed to profit from the contract and may also cover an asset to which the buyer has no direct exposure.