HDFC Bank Completes First Gold Forward Deal at GIFT City

According to PTI reports, HDFC Bank has executed its first gold forward deal from Gujarat International Finance Tec-City (GIFT City), becoming the first Indian lender to do so. The transaction was carried out by the bank’s International Banking Unit (IBU) in partnership with Hindustan Platinum Pvt Ltd, a company known for its work with high-purity precious metals.

What Does This Mean for Gold Hedging?

The deal follows regulatory changes that now allow Indian businesses to hedge gold price risks through GIFT City. This development provides industries like jewellery and manufacturing with a platform to better manage price fluctuations in the precious metals market. HDFC Bank’s involvement is a step toward building a robust bullion ecosystem within the financial sector.

HDFC Bank’s Role in GIFT City

HDFC Bank’s IBU already functions as a trading and clearing member on the Indian International Bullion Exchange (IIBX), which operates from GIFT City. The bank has also announced plans to become a special category client on the exchange. In addition, it has started offering gold and silver forward contracts through its GIFT City operations, catering to businesses dealing with these commodities.

As of 1:35 PM, HDFC Bank shares were trading at ₹1,800.30, showcasing a 7.03% gain over the past year and a 7.67% increase in the last six months.

Why GIFT City Matters

Located in Gujarat, GIFT City serves as an international financial hub, enabling activities like banking, trading, and risk management. The Indian International Bullion Exchange provides a centralised platform for gold and silver transactions, making it easier for businesses to hedge price risks efficiently.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.