By Aditya Shrivastava/ The Indo-Pacific Politics

Two major financial organizations of Taiwan, Taipei Fubon Commercial Bank and CTBC Bank, are planning to have a major presence in the Indian market by establishing  branches within Gujarat International Finance Tec-City (GIFT City). 

This is a significant development between India and Taiwan and it speaks of  increasing economic, financial activity between the two parties. It also  demonstrates the growing prominence of GIFT City as a favoured site for overseas banking centres.

GIFT City is an international financial center located in Gujarat and developed over the last few years. It is expected  to become a leading global financial center that will be able to attract foreign investments and become a leader in high-value cross-border funds and finance flows.

History of Taiwanese Banks in India

Taiwanese banks have had a long presence in India spanning decades but their operations have run on a modest level compared to other foreign players. This was followed by the opening of the first Indian branch by the CTBC bank [China Trust Commercial Bank] in New Delhi in 1996–the first Taiwan bank to be established in India.

In 2012, this was followed by the opening of a second branch in Sriperumbudur, a Tamil Nadu industrial center which was targeting manufacturers and exporters who operate in the area. The second branch was moved to Kattupakkam, about 20 kilometers from Chennai in 2025 to enhance accessibility and efficiency of operations with customers.

CTBC Bank remains the only Taiwanese bank with a physical network of branches in India, providing services in Mandarin, English, and Hindi, serving not only Taiwanese businesses but also Indian clients. The Bank of Taiwan and Mega International Commercial Bank also have representative offices in Mumbai alongside the CTBC Bank, but they are yet to establish full-scale branches in the country.

Taipei Fubon Commercial Bank intended to expand into India. Initially, its entry strategy was to open a branch in Mumbai,  the long established financial capital. It obtained the necessary permission of the Financial Supervisory Commission (FSC) of Taiwan in early 2024, and the Mumbai branch thus  commenced.

Mumbai, the home of corporate headquarters, stock exchanges, and international trade connections, seemed the logical destination for a foreign bank  seeking to gain a foothold in India. But around mid-2025, a massive policy nudge by the Indian government started to ease bank ownership rules for foreign banks with increasing interest in  India. 

GIFT City Emerges as an Alternate

The Indian government started making efforts to promote GIFT City as an international financial center as part of its strategy to create it as an alternative to conventional financial centers such as Mumbai. The city provides a set of incentives, through its International Financial Services Centre (IFSC), aimed at attracting foreign financial institutions.

These include favorable taxation regimes, single-window regulatory clearances to facilitate market entry, presence in state-of-art infrastructure, including plug-and-play office facilities, and a general business environment that promotes the growth of global finance and investment banking and technology-based services.

Understanding the competencies that their new hub provided, Taipei Fubon took the call to retract their temporary branch application in Mumbai and instead apply to launch their initial branch in India within the GIFT City. This change was approved in July 2025 by Taiwan’s Financial Supervisory Commission (FSC).

Hou Li-yang, the Deputy Director-General of Taiwan’s FSC Banking Bureau, said one of the driving reasons behind this decision is the highly internationalized banking and technological innovation focus of GIFT City, according to the Taipei Times. This is in line with strategic directions of the bank and the Taiwanese companies, the Indian industries, as well as their overseas client bases in South Asia.

At the same time, CTBC Bank was also gearing  to expand into GIFT City. In January 2025, the IFSC gave the bank official dispensation to file to get a license to set up an International Financial Services Centre Banking Unit. Its proposed branch will be in the Brigade Towers in the Special Economic Zone of GIFT City and will feature an area of over 3,100 square feet.

This facility is likely to offer a broad range of international financial services, the most notable among these are trade finance, foreign currency lending, and cross-border investment facilitation, as well as cross-border investment facilitation and treasury services to corporate clients once it goes into operation.

CTBC Bank will enter GIFT City in line with its external growth strategy to increase its presence in the region based on the GIFT City rapidly growing structural position as an international banking fintech hub. In the case of Taipei Fubon as well as CTBC Bank, GIFT City offers a more competitive environment than the traditional metropolitan branch setting.

According to the industry spectators, the tax systems favorable policies ease the cost of doing business and improve profitability, and the simplified regulatory procedures enable quicker setup of banking operations. Modern infrastructure, with great telecommunications, safe data facilities as well as access to skilled talent, are an operational advantage that does not exist in older financial districts.

In addition, the location of GIFT City in the vicinity of rapidly developing industries like electronics, semiconductors, fin-tech and advanced manufacturing set these banks in a good position to support the financing requirements of the high-growth industries that are increasingly considering GIFT City their India location.

Other International Banks in GIFT City

The entry of Taipei Fubon and CTBC Bank contributes to an increasingly impressive list of international banks to enter GIFT City. Over the last few years, financial institutions based in the United Arab Emirates, like Mashreq Bank and First Abu Dhabi Bank, and French banks like Natixis, Societe Generale and Credits Agricole, have opened or announced their plan to establish branches in the new hub.

Banks in the city provide a wide range of services covering trade finance, lending in foreign currency, investment bank, and treasury management, which indicates its rising significance in international financial networks.

Both Taipei Fubon Commercial Bank and CTBC Bank are currently awaiting completion of final clearance processes in India, after which they can officially open operations in GIFT City.

After receiving the required permissions, the branches are to specialize in trade finance, corporate banking and facilitating cross-border transactions, thus enhancing the financial bridge between Taiwan and India.

These analysts think that the arrival of these two large Taiwanese entities will further consolidate India as a rapidly developing financial market and make GIFT City as one of the leading offshore fin-tech and banking destinations in Asia.

These developments signify not only a new stage set for  Taiwan-India economic collaboration but also the gradual transformation of GIFT City into a competitive global financial hub that can attract some of the most high-profile banking actors in the world.

References

1. Economic Times. Taiwan’s banks eyeing to expand branches in India. https://economictimes.indiatimes.com/industry/banking/finance/banking/taiwans-banks-eyeing-to-expand-branches-in-india/articleshow/122626130.cms
2. Financial Supervisory Commission, Taiwan. FSC Approves Taipei Fubon Commercial Bank to Establish a Branch in Gujarat International Finance Tec-City (GIFT City), India. https://www.banking.gov.tw/en/home.jsp?id=87&parentpath=0,86&mcustomize=multimessage_view.jsp&dataserno=202507160001&aplistdn=ou=news,ou=multisite,ou=english,ou=ap_root,o=fsc,c=tw&dtable=News
3. Taipei Times. Taipei Fubon Bank gets approval to open India branch. https://www.taipeitimes.com/News/biz/archives/2025/07/03/2003839632
4. CTBC Bank. India Branch Information. https://www.ctbcbank.com/content/twcbo/zh_en/global/southeastasia/IN.html
5. The Hindu Business Line. Taiwan’s CTBC Bank to Open New Unit in GIFT City. https://www.thehindubusinessline.com/money-and-banking/taiwans-ctbc-bank-to-set-up-ibu-in-gift-city/article69804164.ece
6. Republic World. You Won’t Believe Why Taipei Fubon Just Ditched Mumbai for GIFT City Gold. https://www.republicworld.com/business/you-wont-believe-why-taipei-fubon-just-ditched-mumbai-for-gift-city-gold
7. Taiwan’s CTBC Bank to Set Up International Banking Unit at GIFT City. Kunvarji Realty, July 15, 2025. https://kunvarjirealty.com/blog/taiwans-ctbc-bank-to-set-up-international-banking-unit-at-gift-city