3 international banks to come up at IFSC in GIFT City

SBI, Kotak Bank, ICICI Bank and YES Bank, among others have set up shop in the IFSC, while 15 more have applied for permission to the RBI

After seven Indian banks set up shop at the International Financial Services Centre (IFSC) at the Gujarat International Finance Tec-City (GIFT City), three foreign banks are now in advanced talks for opening their international banking units (IBUs) in the area. "Three international banks are in advanced stages and have started process of coming to the IFSC. They are waiting for regulatory permission from both the Reserve Bank of India and their home regulators," said Ajay Pandey, managing director and group chief executive officer, GIFT City, on Monday.

State Bank of India (SBI), Kotak Mahindra Bank, ICICI Bank and YES Bank, among others have set up shop in the IFSC, while 15 more have applied for permission to the RBI.

The recent memorandum of understanding (MoU) signed between London Stock Exchange (LSE) with India's NSE for operating from GIFT City has heightened international interest. Moreover, according to Pandey, the Chicago Mercantile Exchange (CME) through its MoU with MCX was actively looking at functioning from GIFT City.

According to Pandey, apart from IBUs representing the banking vertical, the IFSC at GIFT City was also witnessing traction from insurance and capital markets.

"The next phase of growth is going to be from insurance and capital markets. We expect large insurance players to join soon. BSE has also announced setting up of its international exchange at GIFT City. With banking, insurance and capital markets, we are beginning to put all blocks in the IFSC," said Pandey. From the insurance vertical, the project in recent times has seen GIC and New India Assurance committing space within the city.