Business transactions in GIFT cross $1-billion mark

In about a year since the start of operations, public and private sector banks in the International Financial Services Center (IFSC) at Gujarat International Finance Tec-City (GIFT) have together clocked business transactions in excess of $1 billion (Rs 6,700 crore) through their  international banking units (IBU).

YES Bank has led, doing business of $650 million so far. On Friday, government-owned New India Assurance became the first insurance company in the IFSC. 

"Business transactions at India's first IFSC have already crossed the $1-billion mark and we expect the IFSC business to grow by leaps and bounds now. Apart from banking transactions, GIFT IFSC will host the international business transactions from the insurance segment too. We expect to see a multi-fold jump in GIFT IFSC's business transactions in future due to this development," said Ajay Pandey, managing director and Group CEO of GIFT City.

IBUs of State Bank of India, ICICI Bank, YES Bank, Kotak Mahindra Bank, Federal Bank, IndusInd Bank and IDBI Bank are operational. As many as 14 banks working for Indian companies from Singapore and Dubai are waiting for regulatory approval to open their IBUs at GIFT City.

"To address such regulatory issues for banks, insurance companies and other investors, we have already set up a special task force,” said Arjun Meghwal, Union minister of state for finance, at Gandhinagar on Friday. He said the Reserve Bank of India had assured his ministry it would take a liberal view and act quickly on such requests. 

YES Bank was the first to start operations at GIFT, in October last year. It had, it said, revised its targets upward for the current financial year, after a positive response from its international customers. 

Manish Vora, chief executive officer at its GIFT-IFSC banking unit, said: "Since the beginning of our operations (here), we have already done business of over $650 million. Now, we are targeting to do business worth $1 billion by end-March."

G Srinivasan, chairman, New India Assurance, said: "We will now be able to provide global insurance services and facilities to Indian and international customers from GIFT IFSC."and that the $103-billion group faced around $18-billion write downs,e time” and at “an appropriate forum”.