Bank of India Acquires 6% Stake in CCIL IFSC to Support GIFT City's Growth

In a significant move towards bolstering its presence in the global financial services sector, the state-owned Bank of India announced on Monday its acquisition of a 6.125 per cent stake in CCIL IFSC, a newly incorporated entity listed in GIFT SEZ. This strategic investment, amounting to Rs 6.125 crore, underscores the bank's dedication to the expansion and success of the International Financial Services Centre (IFSC) at GIFT City.

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Subrat Kumar, Executive Director of International Operations at Bank of India, made this announcement during an event celebrating the first anniversary of the bank's IFSC Banking Unit (IBU) in GIFT City. Kumar highlighted the acquisition as a testament to the bank's commitment to fostering the growth of GIFT City IFSC as a premier global financial services hub.

CCIL IFSC, promoted by the Clearing Corporation of India Limited (CCIL), is set to develop and manage a real-time foreign currency settlement system within GIFT City, India's sole operational international financial services centre. This initiative is poised to enhance the GIFT City ecosystem by facilitating a wider range of financial activities and services within the IFSC.

The establishment of the IBU at GIFT City last year was marked by an ambitious goal set by the bank to achieve a business volume of USD 1 billion in its first year, with an equal focus on advances. Remarkably, the IBU has already surpassed this target as of March 2024 and is looking forward to contributing even more significantly to business growth in the forthcoming years. For the current fiscal year, the IBU aims for a 50 per cent increase in business over the previous year.

Operating from GIFT SEZ, the Bank of India's IBU offers a comprehensive suite of global banking solutions. These include External Commercial Borrowings (ECBs), Trade Finance Facilities, Foreign Currency Loans, Syndication Loans Origination, Underwriting & Distribution, and Foreign Currency deposit accounts for both Corporates and Retail customers, including NRIs and foreign nationals. The bank leverages its strategic location within Indian territory to provide competitive pricing and swift processing through an experienced team.

Looking ahead, the Bank of India plans to introduce digital banking services for its clients at GIFT City. These services will encompass transaction-based internet banking facilities in accordance with IFSCA guidelines, further enhancing the bank's offerings in this rapidly evolving financial landscape.