Ten months after Union Finance Minister Arun Jaitely unveiled the norms for India’s first International Financial Services Centre (IFSC) at Gandhinagar, the IFSC banking units at Gujarat International Finance Tec-City (GIFT) have managed to cross the $ 100 million business transactions mark.
Two banks — YES Bank and Federal Bank — have generated such brisk business within three months of their IFSC banking units (IBUs) becoming operational at GIFT IFSC, stated an official release here Monday.
YES Bank was the first to set up an IBU at GIFT IFSC in October 2015, and Federal Bank’s IBU started functioning a few weeks later in November.
“Another dozen plus banks and insurance companies are going commence operations at GIFT IFSC in the coming months. The IFSC at GIFT is attracting a lot of interest from the financial services sector in India, especially from banks, insurance companies and capital market players. We expect that the next big milestone of $ 1 billion business transactions at GIFT IFSC will be achieved shortly,” said Ajay Pandey, MD & Group CEO of GIFT.
A unit at GIFT IFSC is equivalent to a foreign branch, hence facilitates the bank to function as such from within India. IBU offers facilities like buyers’ credit; external commercial borrowing; accepting deposits and providing credit facilities to wholly owned subsidiaries joint ventures of Indian companies registered abroad.