HSBC, ICICI Bank Lead GIFT City Lending Drive As Lenders Attract Record NRI Forex Deposits

HSBC Holdings and ICICI Bank’s GIFT City operations have become the largest lenders under the Reserve Bank of India’s foreign-exchange swap programme for foreign-currency non-resident deposits, highlighting the growing importance of Gujarat International Finance Tec-City as a channel for global capital flows.

According to a report by Bloomberg, the two banks together provided $19.3 billion in loans through the RBI’s concessional swap facility, which operated from June to August, according to data from the International Financial Services Centres Authority (IFSCA).

GIFT City emerges as key hub for NRI funds

The RBI initiative triggered significant inflows of foreign-currency deposits into India, increasing activity at GIFT City. HSBC disbursed $10.9 billion, while ICICI Bank provided $8.4 billion. Other participating lenders included Bank of Baroda, State Bank of India and Canara Bank.

Overall, 20 banks operating from GIFT City extended loans worth $52.8 billion under the programme, according to IFSCA data.

The facility helped India attract a record $127 billion from overseas Indians through special schemes, providing additional support for managing external currency pressures. The RBI also absorbed currency-hedging risks linked to foreign-currency non-resident deposits, encouraging lenders to expand credit operations.

Banking assets and NRI participation rise

As per experts, banking assets at GIFT City are expected to cross $150 billion by September-end, compared with $120 billion at the end of August. The number of bank depositors in the financial hub has increased to around 32,000, nearly 50% higher than at the end of March.

The regulator said customer onboarding processes at GIFT City have improved, with retail customers being added at a pace comparable with global financial centres such as Singapore and Hong Kong.

Assisted video KYC facilities are already available for NRIs, while biometric-based unassisted face authentication is expected by the end of 2026.

Faster interbank transfers, simplified taxation and improved infrastructure are helping GIFT City strengthen its position as an international financial services centre.