Gandhinagar: The Hongkong and Shanghai Banking Corporation Limited (HSBC), one of the world’s largest financial services organizations has got in-principle approval from the GIFT SEZ Authority to set up an IFSC Banking Unit (IBU) at GIFT City, subject to other Regulatory approvals. The proposed commencement of the IBU by HSBC, marks a significant development in India’s IFSC business and proves GIFT’s mettle as a globally competitive international financial centre that is at par with other well established global financial centres across the world. This also marks a major milestone for HSBC in India, which has been present in the country for more than 160 years and its fourth branch globally was in India.

Commenting on the Bank’s proposed operations at GIFT IFSC, Mr.Surendra Rosha, Group General Manager and CEO HSBC India said, “We have been closely partnering the development of GIFT City and are pleased with the rapid progress it has made, offering a great value proposition to global financial institutions. Our proposed IBU at GIFT IFSC, subject to other Regulatory approvals, will complement our domestic business in India and flows with our global financial centres. This would help expand the options available to our customers to seamlessly conduct international business transactions, in particular financing, trade and global markets. This reiterates HSBC’s commitment to India as a core top 5 global contributor, and our second largest employment base globally.”

Welcoming HSBC at GIFT IFSC, Mr. Tapan Ray, MD & Group CEO, GIFT City said, “It is a momentous occasion for us to host HSBC at GIFT IFSC. Government of India has envisaged GIFT IFSC as a hub to bring offshore financial transactions onshore and the presence of HSBC Bank has further strengthened the IFSC ecosystem of India.”

The banking business at GIFT IFSC has seen a quantum jump in last few years. 13 banks have set up their IBUs in GIFT IFSC. The cumulative business in banking vertical have crossed $28bn. GIFT IFSC Banking Units have played a pivotal role in the development of IFSC in India by providing dollar financing to Indian corporates. As per available data, GIFT IFSC have contributed around 11% of total financial services exports of India. Apart from banking, insurance and international exchanges in GIFT IFSC have also seen an upward trajectory in their business.