State-owned Punjab & Sind Bank has received the licence from the International Financial Services Centres Authority (IFSCA) to establish an IFSC Banking Unit (IBU) as a branch at GIFT City, Gandhinagar. According to the latest exchange filing, IFSCA vide their letter no IFSCA-FMPP0IBUR/6/2026-Banking/2 dated 07th July 2026 has granted the licence to the bank. The bank announced the approval on Wednesday, as reported by PTI, marking the formal commencement of its international banking operations. This regulatory approval follows the Reserve Bank of India's earlier permission granted on January 28, 2026, completing the dual-regulatory requirement for operationalising the IFSC Banking Unit.
Punjab & Sind Bank shares rose 0.32% to ₹24.80 on Wednesday, 8 July 2026, following the regulatory approval announcement. The stock touched an intraday high of ₹25.10 and a low of ₹24.47 during the trading session. As reported by multiple market sources, the positive market reaction reflects investor confidence in the bank's strategic expansion into international banking. The bank is a public sector undertaking under the Ministry of Finance and is headquartered in New Delhi, with the Government of India holding the majority stake (over 98%) in the institution.
The establishment of the IBU represents a key component of Punjab & Sind Bank's journey towards expanding its international banking presence and offering world-class offshore banking services. As reported by The Economic Times, this development aligns with the bank's commitment to strengthening its international business capabilities. The bank stated that this move enhances its international banking services and supports India's vision for a global financial hub. GIFT IFSC serves as India's dedicated international financial services centre, designed to facilitate cross-border financial transactions, allowing the bank to conduct international banking activities including foreign currency lending and trade finance from within the GIFT City jurisdiction.
The IFSC Banking Unit will cater to the financing needs of corporate entities, financial institutions, importers and global investors through a comprehensive range of services. According to the bank's statement reported by The Economic Times, these services will include foreign currency banking, trade finance, and other international financial services. The unit is specifically designed to serve the international banking requirements of various corporate and institutional clients, with the receipt of the IFSCA licence completing the prerequisite conditions for the bank to expand its footprint into global financial markets. For a PSU bank like Punjab & Sind Bank, this licence opens a new avenue for fee and interest income from international banking activities.
Punjab & Sind Bank remains committed to supporting the Government of India's vision of developing GIFT IFSC into a leading global financial centre. As reported by The Economic Times, this strategic positioning reflects the bank's alignment with national financial infrastructure development goals. The bank's participation in the GIFT City initiative demonstrates its commitment to contributing to India's broader financial sector development. Several Indian banks, both private and public sector, have expanded their presence at GIFT IFSC in recent years as the hub has grown in prominence, and this licence positions Punjab & Sind Bank to participate in that broader trend.
