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Net
up 11 pc at Rs
333 crore
Exim Bank Posts
Overall Growth
in 2007-08
Export-Import
Bank of India
(Exim Bank) Chairman
and Managing Director
T.C. Venkat Subramanian
has announced
an the country's
premier financial
institution had
posted an overall
improvement in
its performance
in fiscal 2007-08
(April-March),
that included
an increase of
11 percent in
its net profit
at Rs 333 crore
during the year.
He told a press
conference in
Mumbai recently
that that the
loan approvals
and disbursals
had increased
by 23 percent
each and the loan
assets 25 percent
during the Bank's
26th year of operations.
Profit before
tax at Rs. 533
crore showed an
increase of 36
percent over the
previous year
and the Net Profit
(after tax) at
Rs. 333 crore,
an increase of
11 percent over
the previous year.
Capital Adequacy
(Capital to Risk
Assets Ratio)
stood at 15.13
percent.
Loan Approvals
Loan approvals
aggregated Rs.
32,805 crore during
2007-08 as compared
to Rs. 26,762
crore in the previous
year, an increase
of 23 percent.
Disbursements
aggregated Rs.
27,159 crore,
as compared to
Rs. 22,076 crore
during the previous
year, an increase
of 23 percent.
Loan Assets increased
by 25 percent
moving upwards
to Rs. 29,152
crore as on March
31, 2008 from
Rs. 23,274 crore
as on March 31,
2007.
Net NPAs decreased
to 0.29 percent
of net loan assets
as on March 31,
2008, as compared
to 0.50 percent
in the previous
year.
During the year,
the Bank extended
17 Lines of Credit
(LOCs), aggregating
US$ 704 million,
covering 39 countries
to support export
of projects, goods
and services from
India. 89 LOCs
covering 89 countries
in Africa, Asia,
CIS, Europe and
Latin America,
with credit commitments
aggregating US$
2.96 billion are
currently available
for utilisation,
while a number
of prospective
LOCs are at various
stages of negotiation.
The Bank lays
special emphasis
on extension of
LOCs as it is
an effective market
entry mechanism
especially for
small and medium
enterprises.
Project export
contracts supported
amounted to Rs.
26,926 crore and
were secured by
31 companies in
30 countries.
During the year,
41 corporate companies
were sanctioned
funded and non-funded
assistance aggregating
Rs. 5,029 crore
for part financing
their overseas
investments in
20 countries.
Exim Bank has
so far provided
finance to 223
ventures set up
by over 180 companies
in 61 countries
including Austria,
Canada, Germany,
Ireland, Indonesia,
Italy, Malaysia,
Mauritius, Morocco,
Netherlands, Romania,
Sharjah, Singapore,
Spain, Sri Lanka
and USA.
As on March 31,
2008, guarantees
on book were at
Rs. 3,456 crore.
Foreign Currency
Resources
The authorized
capital was increased
by the Central
Government from
Rs. 1,000 crore
to Rs. 2,000 crore.
During the year,
the Bank received
share capital
of Rs. 100 crore
from the Government
of India, increasing
the paid-up capital
to Rs. 1,100 crore
as on March 31,
2008.
During the year,
the Bank raised
borrowings of
varying maturities
aggregating to
Rs. 14,040 crore
comprising rupee
resources of Rs.
8,905 crore and
foreign currency
resources of US$
1,280 million
equivalent.
Foreign currency
resources of US$
1,083 million
equivalent were
raised through
bilateral/club
loans and US$
197 million by
way of FRNs. As
on March 31, 2008,
the Bank had a
pool of foreign
currency resources
equivalent to
US$ 3.53 billion
and outstanding
Rupee borrowings
including bonds
and commercial
papers of Rs.
18,890 crore.
The Bank introduced
Flexi Deposit
Scheme and added
6000 fresh depositors
to its investor
base and had mobilized
over Rs. 280 crore
as of March 31,
2008. Market borrowings
as on March 31,
2008 constituted
88 percent of
the total resources
of the Bank.
The Bank's domestic
debt instruments
continued to enjoy
the highest rating
viz. 'AAA' rating
from the rating
agencies, CRISIL
and ICRA.
During 2007-08,
Standard &
Poor's and Fitch
Ratings have upgraded
the Bank's credit
rating from BB+
to BBB-. The Japan
Credit Rating
Agency (JCRA)
enhanced the Bank's
credit rating
to BBB+ and enhanced
outlook from stable
to positive. Taken
together with
the Baa3 rating
from Moodys, the
Bank at present
holds investment
grade rating on
par with the India
sovereign from
four international
credit rating
agencies.
Focus on West
African Region
The Bank opened
a representative
office in Dakar,
Senegal. The Dakar
office of Exim
Bank is expected
to play a key,
catalytic role
in enhancing trade
and investment
between India
and the West African
Region. The Dakar
office has been
conferred with
special status
'Accord de Siege'
by Government
of Senegal on
par with multilateral
institutions located
in Senegal.
Global Trade Finance
Programme
Exim Bank signed
an agreement with
International
Finance Corporation
(IFC), Washington,
under the Global
Trade Finance
Program (GTFP).
Under this arrangement,
Exim Bank will
be able to confirm
Letters of Credit
(L/Cs), guarantees
and other trade
instruments issued
by approved banks
in more than 40
developing countries
of Central Asia,
Central and Eastern
Europe, Latin
America &
the Caribbean,
Middle East &
North Africa as
also other regions
of Asia and Africa,
and which constitute
an attractive
market for Indian
exporters. Some
of the countries
have a higher
risk profile due
to absence of
a proper credit
enhancement mechanism
for carrying out
documentary credit
trade. The role
of Exim Bank as
'Confirming Bank'
would enable Indian
exporters to access
such markets without
payment risks.
Rural Grassroots
Business Initiatives
The Bank has in
place an innovative
facility to support
globalisation
of rural industries
through its Grassroots
Business Initiative.
The programme
builds upon the
Bank's other support
programmes and
seeks to address
the needs of relatively
disadvantaged
sections of society
while creating
expanded opportunities
for traditional
crafts persons
and artisans,
and rural entrepreneurs
of the country.
The Bank has consciously
sought to establish,
nurture and foster
various institutional
linkages. Towards
this end, a Memorandum
of Cooperation
(MOC) was signed
between the Bank
and the Ministry
of Panchayati
Raj (MOPR) which
aims at enhancing
the export promoting
activities of
MOPR through the
Rural Business
Hub (RBH) initiative
and is in line
with Exim Bank's
initiatives in
supporting exports
from rural India.
Rural Technology
Export Development
Fund: The Bank
promotes rural
Indian technology
to other developing
countries in Asia,
Africa and CIS
under the umbrella
of South-South
cooperation. The
Bank has earmarked
funds for setting
up a Rural Technology
Export Development
Fund to promote
exports as also
enhance the export-worthiness
of rural grassroots
innovative technologies
from India. Thus,
Exim Bank's efforts
are not only aimed
at facilitating
the visibility
of rural products
in the international
market but also
to find alternative
channels through
partnership arrangements
with institutions
and corporates
in India. Corporate
Social Responsibility
Support for Rugby
Team
Exim Bank is supporting
the Rugby Team
of the Kalinga
Institute of Social
Sciences, which
won the Under-14
International
School Rugby Championship
held in London,
UK, in September
2007. The Kalinga
Institute of Social
Sciences (KISS)
provides a combination
of formal education
with vocational
education for
more than 5000
tribal children
of Orissa. The
mission of KISS
is to bring a
paradigm shift
from mere schooling
to innovative
learning for the
poorest tribal
children from
different parts
of Orissa, with
focus on formal
and livelihood
education and
scope for all-round
development. As
part of its endeavours
in supporting
social causes,
Exim Bank's support
to the Rugby Team
of KISS would
encompass training
facilities with
associated infrastructure,
participation
in select domestic/
international
tournaments.
Innovative Programme
for SMEs
The Bank has entered
into a cooperation
arrangement with
International
Trade Centre (ITC),
Geneva, for implementing
a unique Enterprise
Management Development
Services (EMDS)
program, which
is an IT based
solution provider
to enable small
enterprises to
prepare business
plans with international
market in focus.
This is a pioneering
initiative for
supporting SMEs
and for providing
term loans and
export finance
facilities to
the identified
units to help
them in their
globalisation
efforts. The Bank
has partnered
ITC in implementing
this project.
The Bank thus
supports small
enterprises through
capacity building
and assistance
in formulation
of viable proposals.
It is envisaged
that the learning
from this programme
would be transferred
to other developing
countries, and
thus assist in
capacity creation
and institution
building in the
global arena.
The Bank has partnered
the Commonwealth
Secretariat in
the Commonwealth-India
Small Business
Competitiveness
Development Programme.
The objective
of the programme
is to undertake
capacity development
initiative that
promotes economic
development (increased
employment, investment,
trade and economic
activity) in Commonwealth
member states
by providing competitive
strategies and
policies on SME
development to
practitioners
and policy makers,
and to build and
develop institutional
capacity. US Dollar
1 billion Medium
Term Note (MTN)
Facility.
During 2007-08,
5-year Floating
Rate Notes for
JPY 24 billion
(US$ 197 mn.)
were issued under
the Bank's US$
1 billion Medium
Term Notes (MTN)
programme.
Research and planning
Five Occasional
Papers were published
by the Bank during
the year, namely,
Trade and Environment:
A Theoretical
and Empirical
Analysis; Indian
Pharmaceutical
Industry: Surging
Globally; Regional
Trade Agreements:
Gateway to Global
Trade; Knowledge
Process Outsourcing:
Emerging Opportunities
for India; and
Indian Mineral
Sector and Export
Potential.
A publication
titled "Healthcare
Tourism: Opportunities
for India",
was brought out,
which highlights
opportunities
and challenges,
and delineates
strategies for
India to emerge
as a major healthcare
tourist destination.
Global Network
The Global Network
of Exim Banks
and Development
Financial Institutions
(G-NEXID), was
set up in Geneva
in March 2006
through the Bank's
initiative, under
the auspices of
UNCTAD. With the
active support
of a number of
other Exim Banks
and Development
Financial Institutions
from various developing
countries, the
network has endeavoured
to foster enhanced
South-South trade
and investment
cooperation, characterised
among others,
by the launching
of the G-NEXID's
website (www.gnexid.org)
and annual meetings
of the Forum.
'Observer Status'
in UNCTAD underscores
support for the
Forum, while acceptance
of the vision
of the Forum by
developing countries
can be assessed
from the fact
that the membership
of the Forum has
reached 23 by
March 2008.
ADFIAP Development
Award
The Association
of Development
Financing Institutions
in Asia and the
Pacific (ADFIAP)
Development Award
recognises and
honours ADFIAP
member institutions,
which have assisted
projects that
have created a
development impact
in their respective
countries. Awards
are given to member
institutions,
which have implemented
or enhanced outstanding
and innovative
development projects
during the year.
The Bank has been
conferred the
2008 "SME
Development Award".
The Award is in
recognition of
the Bank's "Enterprises
Management Development
Services (EMDS)"
programme, which
is an IT based
solution provider
to enable small
enterprises to
prepare business
plans with international
market in focus.
The Bank, through
this innovative
programme developed
through close
interaction with
the International
Trade Centre (ITC),
Geneva, has created
an enabling environment
for SME development,
and seeks to support
small enterprises
through capacity
building and assistance
in formulating
viable proposals.
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