IDBI Bank first PSB to open banking unit at GIFT City's IFSC

Bank aims to provide foreign currency funding facility to its Indian clients from the GIFT City

IDBI Bank on Friday announced opening of its international banking unit (IBU) within the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City). With this, IDBI became the first public sector bank to open a global desk at GIFT City.

"As part of IDBI Bank's strategy to encash on emerging global opportunities, we have set up our banking unit at GIFT City and we are confident that it will significantly enhance our global financing business," said Kishor Kharat, managing director and chief executive officer of IDBI Bank.

The bank is aiming to provide foreign currency funding facility to its Indian clients from GIFT City.

"IDBI Bank's GIFT branch will provide full range of corporate banking services and will meet foreign currency funding needs of its vast Indian clientele. Through its IBU at GIFT City IDBI Bank aims to foster greater trade and cross border transactions between India and rest of the world," he further said.

IDBI Bank has presence at DIFC, Dubai which is catering to foreign currency and trade related requirements of corporate clients. This is further complemented by opening of IBU at GIFT City.

According to GIFT City officials, other public sector banks are also going to start their IBU operation in coming days. Four private sector banks have already begun operation in GIFT City.

Ajay Pandey, managing director and group chief executive officer of GIFT Company Ltd. said, "We expect some more PSU banks to begin their IBU operations soon. It is estimated that even under conservative estimates, around USD 50 billion worth of international business is conducted outside of India in the absence of an IFSC in India."

Pandey said that in the next few years, the global financial hub coming up at GIFT City will be able to retain a lot of this business which is now going out.