Bank of India expects to conduct $ 4 billion business from GIFT City in next 3 yrs: MD

The first IBU was set up at GIFT City by Yes Bank in 2015.

The IBU, which will be initially manned by 10 employees, will be BOI’s 22nd international branch. “We already have 21 foreign offices in 15 countries. We also have four foreign subsidiaries, one joint venture and one representative office. BOI’s overseas branches contribute to nearly 15 per cent of our global deposits and 16 per cent of our global advances book. We will not be closing any of the four foreign branches as of now. In the last five years, we have closed 10 branches and rationalised them. In GIFT City, we will cater to the business of foreign corporates coming to India for business. Our overseas centres are meant for Indian corporates who have set up joint ventures and subsidiaries,” Karnatak added.

“Through the IBU the bank will provide a range of global banking solutions. On loan matters, we will be providing External Commercial Borrowings, Trade Finance Facilities, Foreign Currency Loans and Syndication Loans. We will also be raising Foreign Currency deposits through current and term deposit accounts, besides offering digital banking facilities through transaction-based internet banking facilities to various clients,” he said.

Karnatak also inaugurated an NRI Help Centre housed in the premises of the Centralised Foreign Exchange Back Office (FEBO) on the 18th floor of GIFT One tower. “Presently, our NRI business, which includes FCNR, NRE and NRO deposits, is close to Rs 30,000 crore. Today we are opening our NRI call centre which will work from 7 am to 10 pm and will be manned by six staff members. This centre will address queries of NRIs calling from across the globe,” he added.

Speaking about the performance of the banking sector in India, the BOI MD said, “The banking system in India is in a sweet spot at present. Banks are doing well… Gross and Net NPAs are at the lowest, if you compare with the previous five years… Provision Coverage Ratio is at a peak hovering around at 90 per cent… CARR is also more than 17 per cent for all public sector banks… The Collection Efficiency for Bank of India was about 90 per cent… The Collection Efficiency in the entire banking system is at its peak.”