Taipei [Taiwan], July 2 (ANI): Taipei Fubon Commercial Bank, the banking arm of Fubon Financial Holding Co., has received approval from Taiwan's Financial Supervisory Commission (FSC) to set up a branch in Gujarat International Finance Tec-City (GIFT City), India's emerging financial and technology hub, Focus Taiwan reported.

The bank has dropped its earlier plan to open a branch in Mumbai, believing GIFT City offers a more strategic location to serve Taiwanese businesses and other enterprises operating in India.

GIFT City, located in Gujarat, offers single-window clearances and approvals and provides plug-and-play infrastructure for businesses.

Quoted by the news platform, Hou Li-yang, Vice Director General of the FSC's Banking Bureau, said India's favourable tax incentives in GIFT City played a key role in Taipei Fubon's decision to pivot away from Mumbai, which had already received FSC approval in February this year.

Taipei Fubon Bank emphasised that GIFT City -- India's first greenfield smart city project -- aligns with its goals to tap into India's population advantage and rapid economic expansion. The city's emphasis on international finance and tech innovation is expected to bolster the bank's competitive edge in the region.

The final go-ahead now rests with Indian authorities, as Taipei Fubon awaits regulatory clearance to proceed.

If approved, it will become the second Taiwanese bank to set up in GIFT City after CTBC Bank, which secured FSC approval in January but has yet to operationalise its branch.

CTBC currently runs two branches in India -- in New Delhi and Kattupakkam -- while Bank of Taiwan and Mega International Commercial Bank operate representative offices in Mumbai.

Taipei Fubon Bank already has a strong regional footprint, with branches in Hong Kong, Ho Chi Minh City, Hanoi, Binh Duong, and Singapore, as well as representative offices in Jakarta, Sydney, and Seoul. It also runs a full-fledged subsidiary, Fubon Bank (China), based in Shanghai. (ANI)