GIFT City May See 3-4 Foreign Banks Set Shop Soon
Around three to four foreign banks are likely to soon set up shop at International Financial Services Centre (IFSC) in Gujarat International Finance Tec-City (GIFT City), and are waiting for the Reserve Bank of India (RBI) to issue certain operating guidelines. Currently, 11 domestic lenders, including State Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Bank of Baroda, have opened their businesses at GIFT City. The financial transactions by these banks have crossed $8 billion.
"About three to four foreign banks are in cusp of setting up offices at GIFT City. The RBI has to issue a final set of operating guidelines for them," GIFT City Managing Director and Group Chief Executive Officer Ajay Pandey told media.
Without naming the foreign banks, he explained that these lenders had sought clarity related to capital adequacy requirements. Pandey noted that these banks had their own regulators in their respective homes, and, therefore, certain norms needed to be worked out with the host regulator, the RBI.
Meanwhile, GIFT City has so far generated over 7,500 jobs, and is looking to cross the 9,000 mark by the end of the current financial year. The city plans to generate as many as one million jobs, including 500,000 direct employment opportunities.
"We are very rapidly moving towards the 10,000 mark. Hopefully, by the end of this year and thereafter, it should double annually," Pandey said. "Lots of the job generation would come from the domestic sector," he added.
GIFT City is an integrated development on 886 acres of land with 62 million square foot of built-up area which includes office space, residential, schools and hospitals. It also has a dedicated multi-services special economic zone (SEZ) for international operations for the services sector. The SEZ also has a status of India's first IFSC.
With inputs from Housing News