YES Bank’s first IFSC banking unit at GIFT starts operations

YES Bank on Tuesday announced commencement of operations of its IFSC Banking Unit (IBU) at the country’s first International Financial Services Centre (IFSC) coming up at the Gujarat International Finance Tec-City (GIFT).

Four more banks, State Bank of India, IDBI Bank, IndusInd Bank and Federal Bank, have received final approval from the Reserve Bank of India and are going to commence IBU operations shortly, an official statement said.

Space allocation So far, more than 15 financial institutions have been allocated space in GIFT IFSC.

An IBU allows Indian banks to deliver a complete range of products to its clients with foreign currency funding requirements. IBU can offer products such as external commercial borrowings to its customers, an area where it had limited capabilities hitherto.

Also, it will 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.

Ajay Pandey, Managing Director & Group CEO, GIFT Company Ltd said, “Today will be marked as an important day in the history of International Financial Services being operated for the first time in the country from GIFT SEZ-IFSC. This would enable job creation in the financial services at GIFT City.”

Cross-border trade Rana Kapoor, Managing Director & CEO of YES Bank said, “This is a significant development in the overall augmentation of YES Bank’s business model and will help in further diversification and expansion of cross-border asset products as well as widen the scope and depth of our liabilities base.

“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 IBU will allow YES Bank to raise foreign currency funding through MTNs and other routes. The bank has appointed Manish Vora as the CEO of the IBU.

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