Axis Bank consolidated its international activities, including business assets of companies and financial institution at Gift City Unit. | Photocredit: Every Scholiers
Large Indian lenders are increasingly in the Gateaustad of Gujarat to tap the bank needs of foreign customers, say senior bankers, where some banks even choose to close part of their foreign branches because of scalability and viable.
“We are busy closing Axis UK. We had a small company there and took a strategic call few years ago that the growth in that company is limited, the costs are quite high,” said Axis Bank MD Amitabh Chaudhry.
“We had set up with the intention to tackle the overseas activities of Indian companies, but because of our sovereign rating there were limitations to what we could do. The majority of the capital has been repatriated. We can do many international activities from Gift City ourselves. We have one of the largest activities in Gift City,” he said.
Business potential
AXIS has consolidated its international activities, including business assets for business and financial institution, at Gift City IFSC Banking Unit (IBU). The lender has developed a strategic unit that focuses on trading financing, business sofa, treasury, retail and capital markets. In FY25, the lender provided an aircraft financing transaction via Gadea City Branch and he carried out the first blue loan from India – $ 500 million mandate from IFC – to finance green and blue assets via Giftbest City Ibu.
“On March 31, 2025, the total assets of our Gift City Ibu was 2.1 percent of the total assets of the bank. Gift City Assets are more than 50 percent of the overseas assets that are kept in all overseas branches of the bank,” the MD said.
Bank of Baroda is now dealing with its gift -city branch as an offshore banking unit and has chosen it as a center for stimulating business growth, taking into account the immense business potential, tax benefit and government initiatives. The gift unit of the lender ‘State of the Art’ has the commercial space for international treasury orations of Global Standard, said it in the FY25 annual report.
“As on March 31, 2025, IFSC Branch’s TOTAL DEPOSITS (just or exaggerated and Loan Against Bank’s Own Deposits) Are ₹ 41.014.22 CRORE, Borrowings are ₹ 8.573.45 Crore and Outide Liabilities are ₹ 832.35 Crore).
Earlier this month, Mashreq Bank India received an in principle approval (IPA) to open a new unit in Gift City. Pand for the unit have been identified and recruitment for key roles are underway. The Gift City Branch offers a series of services, including loans in foreign currency, solutions for trade financing and treasury and risk management products.
“With the proximity of Indian customers and the benefits of operating within a single time zone, the Gift City Branch offers improved convenience and faster change for customers. Moreover, regulatory stimuli such as tax shifts at Bron (TDS) outputs will support competitive structuring of financial solutions in the first years,” said the Terender.
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Published on July 13, 2025
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