GiftCity banks get off to a roaring start mopping up $650 million

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Mumbai | Published: August 21, 2016 2:34:00 PM

Country's maiden international finance centre, GiftCity in Ahmedabad, has got off to a good start with financial services players mopping up over $650 million in forex funds through the Centre as of June.

Indian rupee vs US dollar: Forex markets closedBanks, which have opened their offices in the GiftCity has raised 0 million as of end June. (Reuters)

Country’s maiden international finance centre, GiftCity in Ahmedabad, has got off to a good start with financial services players mopping up over $650 million in forex funds through the Centre as of June.

“Banks, which have opened their offices in the GiftCity has raised $650 million as of end June. Primarily, this has been mopped up by Yes Bank and Federal Bank, which have functional offices at the centre,” GiftCity chief executive and managing director Ajay Pandey told PTI here.

When contacted, an Yes Bank official said the lender’s IFSC branch has mopped up $400 million this fiscal year alone, but refused to share client details.

Apart from these two banks, other players include the nation’s largest lender SBI, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Bank of Baroda, IDBI Bank, Corporation Bank, Syndicate Bank, LIC, New India Assurance, Sidbi and Reliance Capital which are in the process of launching their operations from the centre.

Out of these, Yes Bank, Federal Bank, IDBI Bank and IndusInd Bank have already received RBI approval to open banking units at the centre, Pandey said, adding both the bourses (BSE and NSE) and commodity exchanges like NCDEX and ICEX have signed agreements with the centre to set up international exchanges.

Leading non-financial services players who have taken space include Oracle, Tata Communications, IL&FS, Prestige Group, taking the total numbers of its clients to over 50, he said adding the World Trade Centre is also a prized tenant.

While SBI has taken a space of 0.4 million sqft, LIC has taken 0.2 million sqft, taking the total alloted space to close to 1 million sqft.

According to a McKinsey estimate, the IFSC can add $425 billion to the GDP by 2020 – $250 billion by financial services players, $120 billion by financial services focused IT sector, BPOs around $35 billion and capital market trading can add another $10 billion.

It can also create around 6 lakh new direct and indirect jobs by 2020, Pandey said.

The IFSC, a joint venture between Gujarat Urban Development Corporation and IL&FS, was formally launched by finance minister Arun Jaitley in April 2015.

On completion, at an estimated cost of Rs 78,000 crore over the next 10 years, the centre will have 42 million sqft of commercial space, 14 million sqft of residential and 6 million sqft of social facilities.

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