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 US-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, Standard Chartered 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, StanChart said.

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