HSBC, ICICI Bank Lead GIFT City Lending Drive As Lenders Attract Record NRI Forex Deposits
HSBC Holdings and ICICI Bank’s GIFT City operations have become the largest lenders under the Reserve Bank of India’s foreign-exchange swap programme for foreign-currency non-resident deposits, highlighting the growing importance of Gujarat International Finance Tec-City as a channel for global capital flows. According to a report by Bloomberg, the two banks together provided $19.3 billion in…
HSBC and ICICI Bank lead lending in Gujarat International Finance Tec-City (GIFT City) as foreign-currency non-resident deposits surge. According to Bloomberg, the two banks jointly provided $19.3 billion in loans through the RBI's concessional swap facility between June and August, data from the International Financial Services Centres Authority (IFSCA) revealed.
GIFT City has become a major hub for NRI funds, attracting record inflows of foreign-currency deposits into India. HSBC disbursed $10.9 billion, while ICICI Bank contributed $8.4 billion. The RBI's programme helped India attract a record $127 billion from overseas Indians, addressing external currency pressures. As per experts, banking assets in GIFT City are expected to surpass $150 billion by September, with the number of bank depositors increasing to around 32,000, marking a nearly 50% rise from the end of March.
The regulator noted that customer onboarding processes at GIFT City have improved, with NRIs experiencing assisted video KYC facilities, and biometric-based unassisted face authentication expected by the end of 2026. Faster interbank transfers, simplified taxation, and enhanced infrastructure are bolstering GIFT City's status as a leading international financial services center.
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