Taipei Fubon Bank secures FSC approval to open branch in India

Taipei, July 2 (CNA) Taipei Fubon Commercial Bank, the banking arm of Fubon Financial Holding Co., has secured Financial Supervisory Commission (FSC) approval to open a branch in the Gujarat International Finance Tec-City (Gift City), a business center in western India.

Taipei Fubon Bank said Tuesday it canceled a plan to set up a branch in Mumbai and is now eyeing Gift City, believing that location will allow the bank to be more effective in serving Taiwanese businesses and other enterprises located in the South Asian country.

On its website, Gift City said it is a global financial and technology hub that offers single-window clearances and approvals and provides plug-and-play infrastructure for businesses hoping for fast growth.

Hou Li-yang (侯立洋), vice director general of the FSC's Banking Bureau, said India's government has pledged preferential tax measures to encourage enterprises to go to Gift City, leading Taipei Fubon Bank to scrap its Mumbai plan and set up its first Indian branch in Gujarat.

According to Hou, Taipei Fubon Bank's Mumbai plan had received FSC approval in February.

The bank's plan to open a branch in Gift City still has to receive approval from authorities in India before it can proceed.

Prior to Taipei Fubon Bank, Hou said, CTBC Bank, the flagship banking subsidiary of CTBC Financial Holding Co., obtained the green light from the FSC in January to open a branch in Gift City, but the bank has not moved in yet.

Currently, CTBC Bank has two branches in India -- one in New Delhi and the other in Kattupakkam -- while Bank of Taiwan and Mega International Commercial Bank each have a representative office in Mumbai, Hou said.

Taipei Fubon Bank said Gift City is the Indian government's first green smart city initiative and an international service hub, making it a top choice for foreign financial institutions to enter the Indian market.

The bank said the shift to Gift City from Mumbai was due in part to the city's focus on international finance and technological innovation, which should help the branch strengthen its competitiveness and take advantage of India's population dividend and economic growth.

According to the FSC, Taipei Fubon Bank has set up overseas branches in Hong Kong, Ho Chi Minh City, Hanoi, Binh Duong and Singapore, and has representative offices in Jakarta, Sydney and Seoul as of the end of May.

It also has a subsidiary, Fubon Bank (China), headquartered in Shanghai.