YES Bank, India’s 5th largest private sector Bank, received approval from the Reserve Bank of India to set up International Financial Services Centre Banking Units (IBUs) in Gujarat International Finance Tec City (GIFT).
“Establishing the IBU will propel YES BANK’s growth plans further by providing it access to International financial markets, as well as provide a comprehensive product suite to its corporate clients requiring Foreign Currency (FCY) funding,” the bank said.
The license will also allow YES BANK to raise FCY funding through MTNs & other routes as appropriate, the bank said.
Reserve Bank of India on had issued regulations relating to setting up International Financial Services Centres (IFSC) in March.
“This is a significant development in the overall augmentation of YES BANK’s business model and will help in further diversification and expansion of cross border asset products as well as widen the scope and depth of our liabilities base,” said Rana Kapoor, Managing Director & CEO, YES BANK.
The opening of an IBU will also boost YES BANK’s Cross Border Trade offerings, External Commercial Borrowings, Foreign Currency syndications and offshore M&A, funding business additionally.
YES BANK has already made preliminary efforts towards identifying premises for commencing operations at GIFT City.
YES BANK had recently opened its First International Representative office in Abu Dhabi, UAE in April 2015.