New Delhi, July 13 (PTI) The Hongkong and Shanghai Banking Corporation (HSBC) has got in-principle approval from the GIFT SEZ Authority to set up an IFSC Banking Unit at GIFT City, subject to other regulatory approvals, a release said.

The proposed commencement of the banking unit by HSBC marks a significant development in India's IFSC business and proves GIFT's mettle as a globally competitive international financial centre, the joint release by HSBC and GIFT City said.

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"Our proposed IFSC Banking Unit (IBU) at GIFT IFSC, subject to other regulatory approvals, will complement our domestic business in India and flows with our global financial centres," said Surendra Rosha, Group General Manager and CEO HSBC India.

Tapan Ray, MD and Group CEO, GIFT City said the Indian government has envisaged GIFT IFSC as a hub to bring offshore financial transactions onshore and "the presence of HSBC Bank has further strengthened the IFSC ecosystem of India".

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Gandhinagar-based GIFT City is India's first operational smart city and International Financial Services Centre (IFSC).

The banking business at GIFT IFSC has seen a quantum jump in last few years and 13 banks have set up their IBUs at GIFT IFSC.

The cumulative business in banking vertical has crossed USD 28 billion.

GIFT IFSC Banking Units have played a pivotal role in the development of IFSC in India by providing dollar financing to Indian corporates, the release said.

Apart from banking, insurance and international exchanges in GIFT IFSC have also seen an upward trajectory in their business, it added.

Headquartered in UK, HSBC serves customers worldwide from offices in 64 countries.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)