State-owned Bank of Maharashtra (BoM) on Sunday said it has received Reserve Bank of India’s approval to set up an International Financial Services Centre (IFSC) Banking Unit in GIFT (Gujarat International Finance Tec) City at Gandhinagar.
The branch will function as BoM’s first international branch carrying out offshore banking operations from India.
Nidhu Saxena, MD & CEO, BoM, said, “This is a significant opportunity for our bank as we continue to expand our operations across geographies.
“The opening of IBU in Gift City will be yet another milestone in our bank’s growth story. This development will benefit us to expand our international banking business and also enable us to provide specialised banking services to our customers.”
The IFSC Banking Unit (IBU) will provide BoM access to international financial markets and will allow it to deliver foreign currency funding related products to its clients, per the public sector bank’s statement.
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“BoM will now be able to actively offer products such as External Commercial Borrowings to its customers. The Bank will also be able to meet the funding requirements of overseas entities, which may be joint ventures or subsidiaries of its domestic clients.
“This will further strengthen capabilities and capacity to serve clients in India. The Bank will also be able to participate in global syndications,” the statement said.
In April 2015, the Government of India took the initiative to develop an IFSC at GIFT City. It is a multi-services Special Economic Zone (SEZ) set up to undertake financial services transactions that are currently carried on outside India by overseas financial institutions and overseas branches/ subsidiaries of Indian financial institutions.
