Federal Bank gets Approval from RBI for Setting up IFSC Banking Unit in GIFT City

Federal Bank has obtained RBI permission for setting up International Financial Services Centre (IFSC) Banking Unit (IBU) in Gujarat International Finance Tec-City (GIFT City). A unit at GIFT City is equivalent to a foreign branch and hence facilitates the Bank to function as such from within the Indian shores.

Once the IBU is opened, Federal Bank will be able to meet the funding requirements of overseas entities other than individual / retail customers / HNIs, including the buyers of exporters from India, and undertake their transactions in currencies other than INR. The Bank can also deal with the wholly owned Subsidiaries / Joint Ventures of Indian companies registered abroad. It also permits the Bank to accept borrowings in foreign currency with original maturity period greater than one year. Besides, through the IBU, the Bank will be enabled to lend under External Commercial Borrowings (ECB) to meet foreign currency requirement of Bank’s domestic clients.

A Bank with a strong NRI client base, Federal Bank accounts for nearly 9% of the total NRI remittances to India. The Bank has a Representative Office at Abu Dhabi and has plans to open the second office in Dubai soon.  The Bank also has Rupee Drawing Arrangement with 6 Banks and 71 Exchange Houses. With the setting up of the IFSC Banking Unit in GIFT City, the Bank will now be able to cater to the needs of NRI clients around the globe in terms of meeting their overseas funding requirements.

About Federal Bank:

Federal Bank is a leading Private Sector Bank with a branch network of 1,248 branches and 1,503 ATMs spread across the country. The Bank’s total business mix (deposits + advances) stands at Rs 1.22  Lakh  Crore as at March 31, 2015 and it has earned a net profit of Rs 1005.75 Crore.  Bank’s Capital to Risk weighted Ratio (CRAR) stood at 15.46% at the end of March 31, 2015.  Federal Bank has its Representative Office at Abu Dhabi that serves as a nerve centre for NRI customers in the UAE. Federal Bank is transforming itself, keeping its principles intact, into an organization that offers services beyond par. It has a well defined vision for the future as a guidepost to its progress.