Home / Companies / Yes Bank becomes first entity to start operations in GIFT City

Mumbai: Yes Bank Ltd has become the first entity to start operations from Gujarat International Finance Tec-City (GIFT), the country’s first international financial services centre (IFSC). The private sector bank has set up an IFSC banking unit (IBU), which will help it in accessing international financial markets and provide foreign currency funding to its corporate clients.

Four other banks—State Bank of India, IDBI Bank Ltd, IndusInd Bank Ltd and Federal Bank Ltd—have received approval from the Reserve Bank of India (RBI) and will commence IBU operations shortly, GIFT said in a statement.

“IBU can actively offer products such as external commercial borrowings to its customers, an area where it had limited capabilities hitherto. IBU will also be able to meet the funding requirements of overseas entities which may be joint ventures or subsidiaries of its domestic clients or part of the value chain of its existing customers," it said, adding that over 15 financial institutions have been allocated space in GIFT IFSC.

“The opening of an IBU will also boost Yes Bank’s cross border trade offerings, external commercial borrowings, foreign currency syndications and offshore M&A, funding business additionally," the statement cited Rana Kapoor, managing director and chief executive officer, Yes Bank.

Manish Vora will serve as chief executive officer of the IBU set up by Yes Bank.

GIFT was first conceived in June 2007 when then Gujarat chief minister Narendra Modi proposed an international financial services centre to rival such special zones in Dubai, Singapore and Hong Kong. It is taking shape on the banks of the Sabarmati river, near Gujarat’s capital Gandhinagar.

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