To meet the challenges of integration, PSBs are compelled to come out with new and better treasury tools for their customers. With consistent threat from foreign banks, PSBs are expected to take the challenge. Meanwhile, RBI's intervention in the public sector banking business is also expected to add to their treasury's future.

Integrated treasury is now a global phenomenon. Financial borders between countries are breaking down. Cross-country movements of currency, goods and services are now practically free from impediments, giving rise to widening and deepening of growth of capital and money markets. To cope with such developments, treasury operations are being integrated horizontally, vertically, albeit three-dimensionally.

Macroeconomic environment in India is surging ahead with positive factors like soaring capital market, massive inflow of foreign funds and country's reserve crossing 100 bn dollar mark, GDP growth at more than 7% is amongst the top five in the world and bullish international response of inflow of about Rs. 25,000 cr in our bourses. Public Sector Banks (PSBs), which account for 80% of deposits, 75% of advances and 77% of investments amongst All Scheduled Commercial Banks (ASCBs) are in a position to leverage the integration in a significant manner.

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