Bank of India takes 6% stake in CCIL IFSC

Bank of India

The State Bank of India has acquired a 6.125 per cent share in the recently created CCIL IFSC, which is listed in the GIFT SEZ, demonstrating its commitment to the growth of the IFSC.

Subrat Kumar, Executive Director (International Operations) of the Bank of India, made the statement in GIFT City during a ceremony commemorating the bank’s IFSC Banking Unit’s first anniversary.

“The acquisition of 6.125 per cent stake in CCIL IFSC for Rs 6.125 crore showcases our strategic commitment towards the growth of GIFT City IFSC and its emergence as a global financial services provider,” Subrat Kumar said.

CCIL IFSC, promoted by Clearing Corporation of India Limited (CCIL), is the proposed entity to create and run a real-time foreign currency settlement system at GIFT City, the country’s sole operational international financial services hub.

The organisation will serve as a clearing house and system operator at GIFT City. The foreign currency settlement mechanism is projected to contribute to the ongoing development of the GIFT City ecosystem by enabling and supporting a wider variety of IFSC-based use cases.

When the IFSC Banking Unit at GIFT City was inaugurated last year, the bank set an ambitious goal of reaching $1 billion in business in the first year of operation with equal distribution of advances.

Also read: State Bank of India Q1 results: Net profit jumps 178% to Rs 16,884 cr

The IBU reached its aim of $1 billion by March 2024 and is well positioned to contribute to the IBU’s growth in the next years.

The IBU at GIFT SEZ provides global banking solutions for corporates, NRIs, and foreign nationals, including External Commercial Borrowing (ECBs), Trade Finance Facilities, foreign currency loans, Syndication Loans (Origination, Underwriting, and Distribution), and foreign currency deposit accounts (Current and Term Deposits).

The bank takes advantage of its location in India by offering affordable prices and speedy processing from highly competent personnel. It also intends to provide digital banking services to diverse clients in the near future via transaction-based online banking, as permitted under IFSCA norms.

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