Bank of India opens GIFT City branch; aims $1 billion business by March 2024

New Delhi: State-owned Bank of India on Wednesday opened its branch in the GIFT City Special Economic Zone in Gandhinagar and expects to achieve a $1-billion business through it by March 2024, a senior official said.

Bank of India also aims to touch a business of $4 billion with equal distributions of advances and deposits in the subsequent three years by March 2027 through its IFSC banking unit at GIFT City, its Managing Director and CEO Rajneesh Karnatak said.

Bank of India already has its presence in 15 foreign countries through 21 branches and four subsidiaries, a joint venture and a representative office. Through its GIFT City branch it will provide a range of global banking solutions to the clients, he said.

"We are expecting a $1 billion (Rs 8,227.35 crore) business by March 2024, out of which $500 million will be on deposit side and $500 million on advances side. In the subsequent three years, we plan to touch a figure of $4 billion with equal distributions of advances and deposits by March 2027," Karnatak said.

"In order to reduce our cost of funds, the bank shall canvass foreign currency deposits through a wide network of our foreign branches," he said.

He further said that its branch abroad will continue to function and there is no need to close any of them as of now as the bank has already closed ten branches in the last five years.

The BOI IBU (IFSC banking unit) has the twin advantage of being situated in India providing the benefit of the time zone window for its counterparts located globally with competitive pricing and quick processing from an experienced team, Karnatak said, adding that the bank's businesses through its GIFT City and branches abroad will be different.

"Here at GIFT City we will cater to the business of the foreign corporates who are coming to India for business and also international corporates who want to do international business. Our overseas centres are meant for Indian corporates who have set up JVs and other subsidiaries abroad," he told reporters.

BOI has branches in New York, San Francisco, Paris, Singapore, etc. and subsidiaries in countries like New Zealand, Uganda, Tanzania, and Indonesia. Besides, the lender also has a joint venture with the government of Zambia.

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