On Wednesday, Rajneesh Karnatak, MD & CEO of Bank of India (BoI), officially launched the International Financial Services Banking Unit (IBU) of the bank in the GIFT SEZ area in Gandhinagar.
Bank of India, a government-owned institution, aims to achieve an international business volume of $1 billion by March of the upcoming year, with $500 million in deposits and $500 million in advances. Looking ahead, the bank has set an ambitious target of $4 billion for the following three years, with an equal distribution between deposits and advances.
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Rajneesh Karnatak, MD & CEO of Bank of India, inaugurated the IBU of the bank situated in the GIFT SEZ area in Gandhinagar on Wednesday.
During the event, Karnatak expressed, "Bank of India already has a strong international presence, and the addition of this IBU at Gift City is another achievement for us. With this new branch, Bank of India now operates in 15 foreign countries, comprising 21 foreign branches, 4 foreign subsidiaries, one joint venture, and one representative office."
The BOI-IBU will offer a wide range of global banking solutions, including external commercial borrowing (ECBs), trade finance facilities, foreign currency loans, syndication loans (origination, underwriting & distribution), and foreign currency deposit accounts such as current and term deposits. Additionally, the IBU will provide digital banking services through a transaction-based internet banking facility, in accordance with IFSCA guidelines, catering to eligible clients.
The bank's primary focus will be to meet the financial service requirements of Indian corporations that have operations in foreign countries or engage in joint ventures with foreign companies. Additionally, it will offer services to international banks, financial institutions, and foreign corporations conducting business in India. Currently, the unit has a team of 10 banking professionals with expertise in forex and international business. As the business of the IBU grows, the number of employees will be increased accordingly.
Karnatak also mentioned that the bank has set a target of achieving a 10% growth in deposits and a 12% growth in advances. He stated, "As per our guidelines from March 24, we aim to achieve a 10% growth in deposits and a 12% growth in advances. To ensure smooth progress towards these targets, the bank has closed 10 of its foreign branches and rationalized several other branches."
Additionally, the bank unveiled an NRI call centre at Gift City, which will operate from 7 am to 10 pm. NRI customers who hold accounts with the bank can contact the helpline to address their concerns and grievances.
Commenting on the share and growth of international business, he mentioned, "Currently, the international business constitutes approximately 15% of the bank's total business."
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