Gandhinagar: Sumitomo Mitsubishi Banking Corp gets nod to open branch in GIFT City
SMBC opens branch in GIFT City, easing Japanese investments. Special zone provides tax benefits for offshore borrowing. India's first smart city, GIFT City, caters to diverse client needs with international and domestic banks.
's . (SMBC) has obtained approval to open a branch in the in Gandhinagar, which would help it funnel Japanese investments into India with less regulatory hurdles.This city falls under the special economic zone and is created to encourage exports and foreign investments, especially from multinational corporations.
The Indian government has introduced tax incentives, such as a zero withholding tax, which in principle is applied to the offshore-foreign currency-denominated borrowing from outside India. As regulations prohibit extending foreign currency-denominated loans in India, the offshore-foreign currency-denominated borrowing from outside India has been well utilised.
"GIFT City presents an opportunity for the bank to manage linked to India from within the country, enabling us to cater to the diverse and growing needs of our clients," SMBC said in a statement.
GIFT City, where the banking asset size crossed $52 billion in January, is India's first including a financial offshore special economic zone in Gujarat. The city now has 11 international banks and 16 domestic banks.
Source: Stocks-Markets-Economic Times
