Kerala-based private banker Federal Bank will set up a centre for foreign currency transactions at the proposed GIFT city in Gujarat.
“We have signed an MoU with the authorities of GIFT city for setting up a centre for foreign currency transactions. It will be an equivalent to an overseas branch,” MD and CEO of Federal Bank Shyam Srinivasan told reporters here today.
He said the centre would require the approvals of International Financial Services Centre (IFSC) and Reserve Bank of India (RBI) as it would fulfil all the parameters needed for dealing in foreign currency transactions from a dedicated branch.
The centre would be India’s first international financial centre on the lines of Dubai and Hong Kong, he said.
Federal bank, which has a business of more than Rs 1.22 lakh crore, had also got the RBI approval for setting up a representative office in Dubai. The bank is waiting to get the regulatory approvals.
The bank is already operating a similar office in Abu Dhabi, he said.
Srinivasan said the bank has been able to reduce its NPA levels by more than 50 per cent due to stringent credit profiling and using credit analytics.
The bank is also contemplating to enter the CD market, he added.