StanChart to be first foreign bank to launch ops at GIFT IFSC; may open branch this yr

The GIFT City Thursday said UK-based Standard Chartered will be the first foreign bank to launch operations at International Financial Services Centre (IFSC).  


Standard Chartered has received in-principle regulatory approvals to set up its IFSC Banking Unit (IBU) in Gujarat International Finance Tec-City  (GIFT City), it said in a release.


The UK-based lender is expected to start operations at IFSC by the end of this year, a GIFT City spokesperson said.


The government had envisaged GIFT IFSC as a hub to bring offshore financial transactions, and with the presence of Standard Chartered, the IFSC ecosystem of India will become more formidable now, said Tapan Ray, MD & Group CEO, GIFT City.


"In addition, the announcements made in the recent Union Budget have provided the much needed impetus to take GIFT on a fast track mode. This would definitely incentivise more international financial intuitions to set up their base in GIFT City," he said.


The recent Budget has laid a special emphasis on aircraft financing and leasing and announced various other incentives.


Ray said GIFT City would like to work with organisations, including Standard Chartered, to help build a hub for aircraft financing and leasing within GIFT City.


The banking business at GIFT IFSC has seen a 167 per cent jump in just two years, the release said.


The cumulative banking transactions touched USD 22 billion this year as compared to USD 6 billion in 2016-17.


As per data, IBUs in GIFT IFSC have contributed around 8 per cent of total External Commercial Borrowings (ECBs) availed by indian Corporate in 2017-18 which was around USD 29 billion, it said.


Apart from banking, insurance and international exchanges in GIFT IFSC have also seen an upward trajectory in their business.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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