Commencing offshore banking operations from India, RBL Bank, on Thursday, announced the opening of its IFSC Banking Unit (IBU) at Gujarat International Finance Tec-City (GIFT City) here.

The leading private sector bank had received an in-principle approval from RBI for setting up IBU in November, 2016. This will give RBL Bank access to international financial markets. RBL Bank will raise foreign currency funds to meet its requirements in IBU and fund offshore subsidiaries of Indian companies, other foreign firms, and eligible Indian companies (via ECBs, bonds etc.), said Vishwavir Ahuja, Managing Director and CEO.

“IBU will give us strategic access to offer a range of financial services including foreign currency funding to resident and overseas entities. It will also help our clients tap into potential growth opportunities globally,” he added.

Ajay Pandey, MD and Group CEO, GIFT Company Ltd., said an estimated around USD 50 billion worth of international business is conducted outside of India in the absence of an IFSC in India. “In the next few years, the global financial hub at GIFT City would be able to retain a lot of this business which is now going out. Collectively, business of IBUs, at present, at GIFT IFSC has already crossed the $ 2.5 billion mark”