Top UAE and French Banks Set Up in GIFT City India’s Financial Hub

Photo : Reuters

India’s journey to becoming a key player in global finance took a big step forward as well-known banks from the United Arab Emirates (UAE) and France are preparing to open special banking branches in GIFT City, Gujarat. This move shows how fast India is becoming a top choice for international banking and financial services.

What’s Happening?
Two big French banks — Natixis and Credit Agricole — have received initial approval to open IFSC Banking Units (IBUs) in GIFT City. Other banks such as Societe Generale from France and First Abu Dhabi Bank PJSC and Mashreq Bank from the UAE have also applied to set up their branches soon.

With this, GIFT City is drawing global attention as a place where banks can do international business directly from India.

What is an IFSC Banking Unit (IBU)?
An IFSC Banking Unit, or IBU, is like an overseas branch of a bank. But instead of being abroad, it operates inside India in a special area — GIFT City — made for international finance.

These IBUs deal in US dollar-based services, such as:

• Taking deposits in US dollars
• Giving loans in foreign currency
• Handling trade finance
• External commercial borrowings (ECBs)
• Lending money to other banks

Why is This Important?
The International Financial Services Centres Authority (IFSCA), which regulates these international units, has allowed these foreign banks to start operations. Now, the total number of IBUs in GIFT City has gone up to 31, from just 15 in 2022.

Stay informed with the latest news. Follow DXB News Network on WhatsApp Channel

Out of these 31 IBUs, 14 are from foreign countries, showing that global trust in India’s financial sector is rising fast.

Which Banks Are Joining?

• From France
• Natixis (approved)
• Credit Agricole (approved)
• Societe Generale (applied)
• From the UAE
• First Abu Dhabi Bank PJSC (applied)
• Mashreq Bank PSC (applied)
• Others

Qatar National Bank became the first bank from West Asia to open an IBU in GIFT City last month.

Bank of Maharashtra, a public bank from India, has also applied to join.

Indian Banks in GIFT City
Yes Bank was the first Indian bank to open an IBU in 2015.

Recently, Axis Bank and Standard Chartered have grown their presence by expanding their branches there.

How Much Has GIFT City Grown?

Here’s how fast GIFT City is growing:

• 2022: 15 IBUs
• March 2025: 29 IBUs
• June 2025: 31 IBUs

Total assets handled by IBUs: Over $88.5 billion

Why GIFT City Matters
This shows the world’s growing trust in India’s economy and its reforms. The Indian government wants GIFT City to become one of the top global financial hubs.

GIFT City gives a safe, tax-friendly, and well-regulated environment where foreign banks and investors can do business easily. It helps attract global money, promote trade, and grow India’s economy.