After Mitsubishi UFJ Financial Group (MUFG) recently announced that it had received the nod to open a branch at Gujarat International Finance Tec (GIFT) City, yet another Japanese lender, Mizuho Bank, is preparing to enter GIFT City in Gandhinagar, according to industry sources privy to the development. Sources said that bilateral terms are being finalized for which state approvals are required, and the launch will be formalized thereafter.

MUFG Bank’s branch will soon open for foreigncurrency-denominated lending business. Industry sources said that as India’s first international financial services centre (IFSC) is gaining traction across the globe, more foreign banks are foraying into it.

“Mizuho will offer retail banking services to Japanese corporate clients. Gujarat is home to at least 40 companies from Japan operating in segments such as automobiles, finance management, chemicals, trading, pharmaceuticals, ceramics, and infrastructure,” a well-placed source said. “Other Japanese banks are also eyeing opportunities at GIFT-IFSC.”

With GIFT City offering opportunities to foreign banks to book India-linked offshore businesses, more players are setting up a base here, industry sources said.

Mizuho Bank is among the largest banks in Japan and has long-standing presence in Gujarat with its branch operating in Ahmedabad since 2015.

Times of India