Central Bank of India is preparing to start operations at its International Financial Services Centre banking branch in GIFT City next month as the lender strengthens its international and foreign currency banking business.
As per the PTI report, the lender has received approvals from the Reserve Bank of India and the International Financial Services Centres Authority to establish the branch in GIFT City.
Kalyan Kumar, Managing Director and Chief Executive Officer of Central Bank of India, said the bank has already appointed a branch head and completed groundwork for the launch.
“We would be in a position to open our IBU branch by first week of next month. The bank would certainly mobilise a good amount of forex business,” Kumar said.
He said the new branch would become “a significant milestone in the bank’s growth story” by helping expand international banking operations and specialised customer services.
According to Kumar, the new unit will provide the bank access to international financial markets and support corporate clients requiring foreign currency funding.
The bank plans to offer foreign currency loans, treasury products, trade finance solutions, risk management services, and other specialised banking facilities through the branch.
The lender expects the initiative to strengthen overseas banking capabilities and increase forex business opportunities.
Kumar also said the bank has been preparing for the Expected Credit Loss framework, which will become effective from April 1, 2027.
“We have been working since so many quarters and we have made additional provision of ₹1,575 crore for stage 1 and stage 2 assets. We have been making 100% provision for stage 3 assets. Therefore, there is no challenge in migrating to the ECL framework,” he said.
Under the framework, banks will estimate losses using probability of default, loss given default and exposure at default, allowing earlier recognition of credit deterioration and more proactive risk management.
The framework is expected to result in slightly higher provisioning requirements across several lending segments.
Kumar said Central Bank of India has improved both credit underwriting quality and post-disbursement monitoring standards while also developing stress-testing models to assess portfolio performance under changing macroeconomic conditions.
“We are developing the different models through which we can actually conduct stress testing and see how our portfolio behaves and in this dynamic process, we are prepared for migrating to ECL,” he said.
Read More: RBI Cancels Licence of Maharashtra’s Yashwant Co-operative Bank Over Capital Concerns!
As of 20 May 2026, at 9:25 AM, Central Bank of India share price is trading at ₹33.63 per share, reflecting a decline of 1.20% from the previous closing price.
The upcoming launch of the international banking branch at GIFT City marks a significant expansion step for Central Bank of India as the lender simultaneously prepares for the transition to the Expected Credit Loss-based provisioning framework.
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Published on: May 20, 2026, 10:12 AM IST
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