Bank of India Acquires 6.125% Stake in CCIL IFSC

State-owned Bank of India, on Monday, announced its acquisition of a 6.125% stake in CCIL IFSC, present in the GIFT SEZ. The announcement was made on the bank’s first-year anniversary of its IFSC Banking Unit in GIFT City. BOI’s Executive Director of International Operations, Subrat Kumar, on that occasion announced its plan to develop and grow GIFT City IFSC.

GIFT City

The Gujarat International Finance Technology City is a project of national importance and an integral part of India’s growth. It’s India’s first operational greenfield smart city located on the banks of the Sabarmati River. This special economic zone is home to 23 multinational banks, 35 fintech entities, 2 international stock exchanges, and India’s first International Bullion Exchange. 

CCIL IFSC in GIFT CITY

CCIL IFSC is an entity that operates with real-time foreign currency settlements. It is operational at GIFT City, Gujarat, and is the country’s only operational international financial services centre. It acts as a clearing house and a system operator. The foreign currency settlement system is handled by the Clearing Corporation of India (CCIL) in GIFT City, whose aim is to enable and promote members and users within the IFSC.

BOI’s History with IFSC

BOI first inaugurated its ISFC banking Unit (IBU) on 10 June 2023. Through this Business Unit, it offers several global banking solutions through transaction-based Internet banking facilities. It had, then, set a target of touching $1 Billion business in the first of its operations with equal distribution of advances. As of March 2024, BOI surpassed its $1 Billion target. Based on these promising financials, the Bank has, now, shown its commitment further by acquiring a 6.125% stake in the project. Thus, for this fiscal, the International Banking Unit has set a target of achieving 50% business growth over the previous year.

Conclusion

GIFT IFSC plays a prominent role in the finance industry. After SBI’s acquisition of a 6.125% stake in CCIL IFSC Ltd. Bank of India, with its investment of Rs. 6.125 Cr acquired a stake of 6.125% with the intention to expand its business in GIFT City and its emergence as a global finance services provider.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.