Gandhinagar: MUFG Bank today announced that it has become the first Japanese bank to obtain approval to open a branch (GIFT Branch) in the Gujarat International Financial Tec-City (GIFT City) from the International Financial Services Centres Authority in India and the Financial Services Agency in Japan. The bank will now proceed with preparations to open the GIFT Branch.

Presently, MUFG Bank has five branches in India (New Delhi, Mumbai, Chennai, Bengaluru and Neemrana), making the GIFT Branch our sixth branch.

As part of the Indian government’s vision to make India a hub for international financial services, it established GIFT City in Gujarat State, western India, as a financial and IT special zone with an international financial service centre for offshore transactions. GIFT City encourages banks and investors to return to India. The government has rolled out tax incentives, such as a zero withholding tax and a 10 year corporate tax holiday, which have led many foreign financial institutions to open offices in GIFT City.

Tapan Ray, MD & Group CEO GIFT City said – “The announcement of MUFG Bank becoming the first Japanese bank to open a branch in GIFT City is indeed a positive one. With this important addition, the international banking ecosystem in GIFT City will further strengthen, showcasing the rising significance of GIFT IFSC. We are confident that other Japanese financial institutions would also consider marking their presence in GIFT City.”

In India, regulations in principle prohibit extending foreign currency-denominated loans, but GIFT City provides an opportunity to book India-linked offshore business within India which enables to meet diverse funding needs of customers in a market where future growth is expected. In addition, foreign currency lending operations, hitherto mainly conducted from outside India, can now be processed within the country. This, together with an expected simplification of procedures, will improve diversity and mobility in financing in India, enabling clients to benefit from improved financial services

MUFG Bank in a release said it strives to provide financial services to its clients in India, doing so ever since the establishment of the current Mumbai Branch in 1953. In March 2022, the bank announced the establishment of the MUFG Ganesha Fund[1] , an investment fund totaling USD300 million for startups in India with the aim of further contributing to the development of clients operating in India and of India itself. The bank said it will make the most of this network, the largest of any Japanese bank in India, and work to provide even more extensive enriched financial services so as to live up to clients’ needs better than ever before. DeshGujarat