Bank of India (BoI) expects to conduct businesses worth USD 4 billion from the IFSC Banking Unit (IBU) inaugurated Wednesday at GIFT City in Gujarat. The bank also inaugurated an NRI Help Centre in the same campus.
“We are expecting USD 1 billion business by March 2024 out of which USD 500 million will be through deposits and another USD 500 million will be through advances. In the next three years, we plan to touch a figure of USD 4 billion. We will also need to raise resources for funding these advances. Some of these resources will be raised from GIFT City or inter-bank borrowings. Some of the resources will also be borrowed from our Japan, US or UK branches, while some will be through NRIs,” said Rajneesh Karnatak, Managing Director and CEO of Bank of India, about the newly launched IBU. The first IBU was set up in GIFT City by Yes Bank in 2015.
The IBU which will be initially manned by 10 employees will be BOI’s 22nd international branch. “We already have 21 foreign offices in 15 countries. We also have four foreign subsidiaries, one joint venture and one representative office. BoI’s overseas branches contribute nearly 15 per cent of our global deposits and 16 per cent of our global advances book. We will not be closing any of four foreign branches as of now. In the last five years, we have closed 10 branches and rationalised them. In GIFT City we will cater to the business of foreign corporations coming to India for business. Our overseas centres are meant for Indian corporates who have set up joint ventures and subsidiaries,” Karnatak added.
Through the IBU the bank will provide a range of global banking solutions. On the loan side, it will give External Commercial Borrowings, Trade Finance Facilities, Foreign Currency Loans and Syndication Loans. “We will also be raising Foreign Currency deposits through current and term deposit accounts, besides offering digital banking facilities through transaction-based internet banking facilities to various clients,” he added.
Speaking about the performance of the banking sector in India, the BoI MD said, “The banking system in India is in a sweet spot at present. Banks are doing well. Gross and net NPAs are at the lowest, if you compare with the previous five years,” he said.