Indian Overseas Bank on Tuesday said the International Financial Services Centres Authority (IFSCA) via a letter dated June 1, granted license to the PSU bank to set up its branch at GIFT City, Gujarat. This will enable the bank to participate in global offshore banking and foreign currency operations.

“The validity of the license is perpetual and subject to such terms and conditions as may be specified by IFSCA,” IOB said in a filing to the exchanges.

In December 2025, IOB received approval from the Reserve Bank of India to establish an International Financial Services Centre Banking Unit at GIFT City in Gujarat

This development comes on the heels of IOB’s board-approved plan to raise ₹5,000 crore in fresh capital. The bank’s Board, in a meeting in May, approved the raising of equity capital to the extent of ₹5000 Crores (including premium, if any) by way of Follow-on Public offer (FPO) or Rights issue or Qualified Institutional Placement (QIPs) or any other mode or combination thereof.

Published on June 2, 2026