Gift City Faces Talent Shortage as Bank Executives Depart for New Roles

Talent Exodus Hits India's International Finance Hub

India's international finance hub, Gujarat International Finance Tec-City (GIFT City), is facing intensified competition for talent as the local heads of two foreign lenders resign in quick succession for new opportunities in the low-tax center.

According to people familiar with the matter, two bank chiefs based in GIFT City have stepped down from their roles in the last few months. Taral Shah, who headed Singapore's DBS Bank Ltd.'s GIFT City unit, handed in his resignation after a nearly 13-year stint that included three years in the hub. Saiju Gandhi, who led Standard Chartered Plc's branch in the center, quit after two decades with the lender, including six years in GIFT City.

DBS declined comment on Shah's resignation, while Standard Chartered did not respond to emails seeking comment. In a separate development, Bejoy Padamadan, head of Mashreq Bank PSC's branch, has resigned, the bank said in response to a query from Bloomberg News. Padamadan is leaving just about a year after joining the firm.

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GIFT City, based in western India, is home to global banks including HSBC Holdings Plc and Mitsubishi UFJ Financial Group Inc., alongside local lenders and more than 200 asset managers, insurers, and other firms. The hub is experiencing a new phase of growth, with global banks expanding their presence in the area, lured by tax incentives and a lighter regulatory framework.

The moves come as Prime Minister Narendra Modi's flagship business-friendly project, nearly two decades in the making, enters a new phase of growth. GIFT City has increasingly drawn business from Asia's more established financial centers such as Hong Kong and Singapore. However, a lack of restaurants and entertainment venues has discouraged potential residents. Most of the 28,000 people working in GIFT City live in the nearby cities of Ahmedabad and Gandhinagar.