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

Indian Overseas Bank has received official approval from the Reserve Bank of India (RBI) to establish an International Financial Services Centre (IFSC) banking unit in Gujarat International Finance Tec-City (GIFT City). The regulatory clearance was communicated through an official RBI letter dated December 29, 2025, marking a significant development for the public sector bank as it expands its footprint in India's premier international financial hub.

Official RBI Approval Details

The bank received formal permission through an RBI letter dated December 29, 2025. Indian Overseas Bank has notified stock exchanges BSE and NSE about this development through a regulatory filing under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations. The communication was issued from the bank's central office and signed by Ram Mohan K, Compliance Officer of Indian Overseas Bank.

Parameter:	Details
RBI Letter Date:	December 29, 2025
BSE Scrip Code:	532388
NSE Scrip Code:	IOB
Regulatory Compliance:	SEBI LODR Regulation 30
Compliance Officer:	Ram Mohan K

Strategic Expansion into GIFT City

The approval allows Indian Overseas Bank to set up specialized banking operations within the IFSC framework at GIFT City. This move positions the bank to capitalize on the growing opportunities in international financial services and enhances its ability to serve global clients from India's financial gateway. The bank requested both exchanges to take the information on record and make it available on their respective websites.

IFSC Banking Unit Benefits

The establishment of an IFSC banking unit will enable Indian Overseas Bank to offer international banking services under the IFSC regulatory framework, serve multinational corporations and international clients, access global financial markets more effectively, and expand revenue streams through specialized financial products. The setting up of this unit will enable the bank to expand its presence in international financial services within the regulatory framework of the IFSC.

Regulatory Milestone

The RBI approval represents a crucial regulatory milestone for Indian Overseas Bank's expansion strategy. GIFT City serves as India's first operational smart city and international financial services centre, providing a conducive environment for banks to offer world-class financial services to domestic and international clients. This development aligns with the government's vision of establishing India as a global financial hub and demonstrates Indian Overseas Bank's commitment to participating in the country's evolving financial services landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.32%	-3.33%	-4.80%	-10.60%	-30.90%	+216.04%

Indian Overseas Bank has received a significant interim distribution of USD 25,717,298.33 from the liquidation of its Malaysian subsidiary. The amount represents the bank's share from the Members Voluntary Liquidation (MVL) of India International Bank (Malaysia) Bhd, disclosed under Regulation 30 of SEBI (LODR) Regulations, 2015.

Joint Venture Structure

India International Bank (Malaysia) Bhd was established as a joint venture between three prominent Indian public sector banks. The ownership structure comprised Bank of Baroda, Indian Overseas Bank, and Union Bank of India, with Indian Overseas Bank holding a 35% stake in the Malaysian banking entity.

Liquidation Details

The interim distribution represents capital repatriation from the ongoing Members Voluntary Liquidation process of the Malaysian subsidiary. The following table summarizes the key details of the transaction:

Parameter	Details
Amount Received	USD 25,717,298.33
Distribution Type	Interim capital repatriation
IOB Stake	35%
Liquidation Process	Members Voluntary Liquidation (MVL)
Joint Venture Partners	Bank of Baroda, Union Bank of India

Regulatory Compliance

The bank has fulfilled its disclosure obligations by informing both major stock exchanges about this development. Indian Overseas Bank communicated the receipt of funds to the Department of Corporate Services at BSE Limited and the Vice President at National Stock Exchange Ltd, ensuring compliance with SEBI listing regulations.

Financial Impact

The interim distribution provides Indian Overseas Bank with substantial foreign currency inflows from its overseas investment. As the liquidation process continues, the bank may receive additional distributions based on the final settlement of the Malaysian entity's assets and liabilities, subject to the completion of the MVL proceedings.