Japanese lender, MUFG Bank has announced that it has begun operations from Gujarat International Finance Tec-City (GIFT City) in Gandhinagar, the capital city of Gujarat state. In May this year, the bank received final approval from the International Financial Services Centres Authority (IFSCA) as well as the financial services agency of Japan to open the branch. Going forward, the bank will strive to further leverage its enhanced office footprint to provide an even more extensive and enriched suite of financial services to meet the diverse needs of its customers, according to a statement issued by MUFG Bank.
With the latest one at GIFT City, its total number of branches in India reached six. The other centres are New Delhi, Chennai, Bengaluru, and Neemrana. Since the pandemic, there has been a greater influx of foreign banks setting up offices at GIFT City in Gandhinagar, as the country’s first international financial services centre (IFSC) catches global attention.
Institutions such as Standard Chartered Bank, Hongkong & Shanghai Bank Corporation Ltd, Citibank NA, Barclays Bank, Deutsche Bank, and JPMorgan Chase Bank National Association have set up IFSC Banking Units (IBUs) here. While some have started operations, a few others are expected to commence transactions soon. The Bank of America Corporation, a US-based multinational investment bank and financial services company, was among the early entrants into GIFT City, having set up a delivery centre in the SEZ.
By January 2021, total banking transactions had already reached $51 billion at GIFT city. With GIFT City offering opportunities to foreign banks to book India-linked offshore businesses, more players are setting foot here.
Shashank Joshi, Deputy CEO of India for MUFG Bank, said, “We are fully committed to leveraging our presence in GIFT City to contribute to India’s vision of being a gateway to the world. The bank will harness its capabilities and relationships to facilitate greater business collaboration and synergies between India and Japan."