Taiwan’s CTBC Bank to Set Up International Banking Unit at GIFT City

News Source: thehindubusinessline.com

CTBC Bank, the largest privately owned bank in Taiwan, has become the latest to apply to the International Financial Services Authority (IFSCA) to set up an IFSC Banking Unit (IBU) in GIFT City. The Taiwanese bank follows a series of banks from France and the UAE that have made similar applications in recent months.

In its application filed with the IFSCA a few days ago, CTBC Bank proposed to take up over 3,100 square feet of space in Brigade Towers, located within the GIFT SEZ area. CTBC Bank already has a presence in India, having established its first branch in New Delhi in 1996. In January 2025, Taiwan's Financial Supervisory Commission officially allowed CTBC Bank to apply to the authorities in India to open a branch in GIFT City.

CTBC Bank is not the only Taiwanese bank planning to expand in GIFT City. Earlier this month, Taipei Fubon Bank received formal approval from authorities in Taiwan to set up an IBU in GIFT City. The new branch in Gujarat will not only serve as a gateway to the Indian market but will also cater to Taiwanese businesses and local enterprises across South Asia. “The overall growth seen in sectors such as electronics and semiconductors could be a key reason why Taiwanese banks are setting up IBUs,” a senior IFSCA official said.

Earlier this month, Mashreq Bank became the first UAE-based bank to receive in-principle approval to open an IBU in GIFT City, offering services such as foreign currency loans, trade finance solutions, and treasury and risk management products. Another Middle Eastern bank, First Abu Dhabi Bank, has also formally applied to set up an IBU in GIFT City. 

Yes Bank was the first bank to set up an IBU in GIFT City in October 2015. As of March 2025, IBUs in GIFT City have a total asset base of about $88.5 billion, which includes investments, trade finance, loans to businesses and individuals, and interbank placements. The number of IBUs in GIFT City has more than doubled over the past three years, rising from 15 in March 2022 to 29 by the end of March 2025. With the recent approvals for Natixis and Crédit Agricole Corporate and Investment Bank, the total number of IBUs has now reached 31.

Several early entrants have also expanded their operations in GIFT City. For instance, Standard Chartered Bank, the first foreign bank to open an IBU, moved to a larger office in April 2025 to accommodate its growing operations. Similarly, domestic banks such as Axis Bank have expanded their presence in GIFT IFSC, moving to offices three times larger in November 2024.