[ad_1]
The Bank of India (BoI) expects to conduct business worth US$4 billion from its IFSC Banking Unit (IBU) which was inaugurated on Wednesday in GIFT, Gujarat. The bank has also opened a help center for NRIs on the same campus.
We expect the business to reach $1 billion by March 2024, of which $500 million is through deposits and another $500 million is through advances. In the next 3 years, we plan to reach the figure of 4 billion US dollars. We will also need to raise resources to fund these developments. Some of these resources will be collected from GIFT City or borrowed between banks. Speaking about the newly launched IBU, Rajneesh Karnatak, Managing Director and CEO of Bank of India said: The first IBU was set up at GIFT City by Yes Bank in 2015.
The IBU, which will initially be staffed by 10 people, will be the 22nd international branch of BOI. We already have 21 foreign offices in 15 countries. We also have four foreign subsidiaries, a joint venture and one representative office. The investment bank’s overseas branches contribute approximately 15 percent of our global deposits and 16 percent of our global advance book. We will not close any of the four foreign branches yet. In the past 5 years, we have closed and rationalized 10 branches. At GIFT City, we will cater to the business of foreign companies coming to India for business. Karnatak added that our offshore centers are for Indian companies that have set up joint ventures and subsidiaries.
Through the IBU, the bank will offer a range of global banking solutions. On the loan side, it will grant foreign trade loans, trade finance facilities, foreign currency loans, and syndicated loans. He added, “We will also work to increase deposits in foreign currencies through current and term deposit accounts, in addition to providing digital banking facilities through transaction-based online banking facilities for various customers.”
Speaking about the performance of the banking sector in India, the Managing Director at BoI said, “The banking system in India is in a good place at the moment. Banks are doing well. Gross and net NPAs are at their lowest levels, when compared to the previous five years.
[ad_2]
