Bank of India Acquires 6.1% Stake in CCIL IFSC
OVERVIEW:
- The Bank of India (BoI) acquired a 6.125% stake in the Clearing Corporation of India Ltd. (IFSC).
- This move reflects BoI’s commitment to strengthening its presence in GIFT City, India’s international financial services centre.
TRANSACTIONAL DETAILS:
- Stake Acquired: Bank of India purchased a 6.125% equity stake in CCIL IFSC.
- Investment Value: The acquisition cost BoI ₹6.125 crore.
- Shares Purchased: BoI acquired 61.25 lakh equity shares at ₹10 per share
STRATICAL ACQUISITION:
- The announcement was made by Subrat Kumar, Executive Director (International Operations) of BoI, at an event celebrating the first anniversary of the bank’s IFSC Banking Unit in GIFT City.
- CCIL IFSC, promoted by Clearing Corporation of India Limited (CCIL), is designed to function as a real-time foreign currency settlement system and act as a clearing house within GIFT City.
FINANCIAL TARGETS AND GROWTH:
- Since inaugurating the IFSC Banking Unit last year, Bank of India set an ambitious target of reaching $1 billion in business within its first year, a milestone it achieved by March 2024.
- For the current fiscal year, the bank aims for a 50% increase in business over the previous year, highlighting its aggressive growth strategy
DIGITAL BANKING INITIATIVES:
- Aligned with IFSCA guidelines, the Bank of India plans to offer comprehensive digital banking services through transaction-based internet banking facilities to various clients.
- This initiative aims to enhance client convenience and support the digital transformation of banking services within GIFT City.
CCIL IFSC ROLE:
- Operational Focus: CCIL IFSC will operate as a clearing house and system operator, specifically managing the Foreign Currency Settlement System (FCSS).
- Financial Stability: By supporting the efficient and secure settlement of financial transactions, CCIL IFSC contributes to the overall stability and confidence in the financial markets
CONCLUSION:
- The acquisition of a 6.125% stake in CCIL IFSC by the Bank of India marks a strategic step towards enhancing its influence in GIFT City.
- This investment is expected to strengthen the financial infrastructure, attract global investments, and promote economic growth in the region.
- By supporting CCIL IFSC, BoI is contributing to the establishment of GIFT City as a leading international financial services hub in India.
