Kochi: Federal Bank has become the second Bank to open an 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.
The IBU was opened today by the Executive Director of Federal Bank, Ashutosh Khajuria in the presence of Tomy John, Vice-President and Head of the IBU and members of staff.
With the opening of the IBU, the Bank will now 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 is now enabled to lend under External Commercial Borrowings (ECB) to meet foreign currency requirement of the Bank’s domestic clients.
Caption of photograph:
Ashutosh Khajuria, Executive Director & CFO, Federal Bank inaugurating the International Financial Services Centre (IFSC) Banking Unit (IBU) opened by Federal Bank in Gujarat International Finance Tec-City (GIFT City). Also seen in the picture are Tomy John, Vice-President, IBU, GIFT City & members of staff of the IBU.
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