Bank of Maharashtra Receives RBI Approval to Set Up IFSC Banking Unit in GIFT City

Bank of Maharashtra has received approval from the Reserve Bank of India (RBI) to set up an International Financial Services Centre (IFSC) Banking Unit (IBU) in GIFT City, Gandhinagar, Gujarat. The approval was communicated through an RBI letter dated February 13, 2025.

IFSC Banking Unit

An IFSC Banking Unit allows banks to conduct foreign currency transactions and offer financial services that are not available under domestic banking regulations. These units cater to global clients, including businesses, investors, and Non-Resident Indians (NRIs). Banks operating in GIFT City benefit from regulatory relaxations and tax incentives.

GIFT City 

GIFT City (Gujarat International Finance Tec-City) is India’s first operational IFSC. It is to provide a business-friendly environment for financial institutions. Several domestic and international banks have already established IFSC Banking Units here, leveraging its infrastructure for global banking and financial transactions.

Market Performance

On February 14, 2025, Bank of Maharashtra’s shares at 12:10 PM were trading at ₹47.99, showing a 2.34% decline during the day. Over the past month, the stock has dropped 9.01%, and over the past year, it has fallen by 19.95%. However, over the last five years, the stock has gained 300%.

Considerations

Banks setting up IFSC units must comply with RBI guidelines and IFSC regulations. These units operate under a separate regulatory framework and do not offer regular retail banking services. Instead, they focus on trade finance, external commercial borrowings, foreign currency lending, and wealth management services for international clients.

Market Presence

Bank of Maharashtra, headquartered in Pune, operates with a presence across India. The addition of an IFSC Banking Unit in GIFT City extends its operational scope beyond domestic banking, aligning with other financial institutions in recent years.

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