Indian Overseas Bank Gets RBI Nod to Set Up IFSC Banking Unit at GIFT City

Indian Overseas Bank has secured regulatory clearance from the Reserve Bank of India to establish an International Financial Services Centre (IFSC) Banking Unit at GIFT City, marking a key step in the bank’s overseas and offshore banking strategy. 

Key Development 

In a regulatory filing dated December 29, 2025, the bank informed stock exchanges that the RBI, through a letter issued on the same date, has permitted Indian Overseas Bank to set up an IFSC Banking Unit (IBU) at GIFT City, Gujarat. 

The intimation was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was addressed to both the BSE Limited and the National Stock Exchange of India. 

Strategic Implications 

The establishment of an IBU at GIFT City enables Indian Overseas Bank to offer a range of international banking services, including foreign currency lending, trade finance and treasury operations, within India’s designated offshore financial hub. GIFT City has emerged as a focal point for global banking, capital markets and financial services activities, supported by a dedicated regulatory and tax framework. 

Read More: Top 5 Performing Public Sector Banks in 2025 Returns up to 50%: Indian Bank, Canara Bank & Others on YTD Basis! 

IOB Share Price Performance  

As of December 30, 2025, at 9:50 AM, IOB  share price is trading at ₹33.85 per share, reflecting a surge of 0.03% from the previous closing price. 

Conclusion 

RBI’s approval for an IFSC Banking Unit at GIFT City strengthens Indian Overseas Bank’s presence in international finance and positions it to tap cross-border business opportunities from within India’s global financial hub. 

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