VTB Bank has completed implementation of a centralized treasury system at Military Industrial Company (Voenno-Promyshlennaya Kompaniya, VPK). The project was managed by VTB’s Global Transaction Banking Department in close cooperation with VTB’s Department for operations with public and defense sector customers.
The project aims to make VPK’s financial subdivisions more efficient, to cut costs, and to achieve optimal utilization of the company’s working capital, which will help mobilize internal resources and reduce exposure to foreign borrowings.
As part of the project, VTB introduced an automated Customer Settlement Center allowing VPK to distribute functions between head office and group subsidiaries by delegating some expenditure responsibilities, and to obtain full control over the group’s payments via a centralized budgeting system and the ability to coordinate payments.
The system also enabled the company to tighten control over its cash flows through extended system of preliminary control over debit transactions and cash flow data consolidation in various analytical reports.
To enhance liquidity management, VTB Bank put in place an automated system for placing free cash in short-term overnight deposits.
«The key task of Global Transaction Banking is to develop and provide the customers with solutions to enhance cash flow efficiency, reducing risks and operating costs.».
VTB Senior Vice President and Head of Global Transaction Banking
Gurinder Nihal, VTB Senior Vice President and Head of Global Transaction Banking, said: “The key task of Global Transaction Banking is to develop and provide the customers with solutions to enhance cash flow efficiency, reducing risks and operating costs. VTB has a wide selection of tools to solve these problems, and can offer an individual plan to every particular customer. In cooperation with VPK, VTB developed a modern, practical solution that helped the company achieve its targets”.
VPK designs and manufactures armored carriers, multipurpose and lightly armored vehicles for ensuring security, law and order, which are leaders on the global arms and machinery market, and form the basis of the ground troops of Russia’s Armed Forces and power structures. VPK also manufactures and delivers armored bodies for various armored vehicles, military automotive supplies and air-defense systems, as well as armor plating modules for Russian and foreign vehicles.