Exim Bank posts PAT of ` 82 crores in FY 2018-19

       
During the year, Exim Bank conducted 36 seminars and workshops to increase exporter awareness, on themes broadly classified into export capability creation, industry, country & region focus, and export potential of Indian states.

Mr. David Rasquinha, Managing Director and Mr. Debasish Mallick, Deputy Managing Director, Export-Import Bank of India (Exim Bank), announced the Bank’s results for the financial year 2018-19 at a press conference in Mumba.

Key highlights of the Bank’s performance during 2018-19 are as under:

FINANCIAL PERFORMANCE                                                                                                                                                                            (in` crore)

Loan Portfolio 93,617
Non-funded Portfolio  14,096
Operating Profit  2,068
Net worth  14,674
Profit after Tax  82
Balance of Profit transferred to Government of India  8.17
Business per Employee  571
Provision Coverage Ratio 84.72%
Capital to Risk Assets Ratio 19.07 %
Net NPAs 2.44 %

BUSINESS PERFORMANCE

  • Lines of Credit (LOCs):During 2018-2019, 18 LOCs amounting to US$ 2.31 billion were extended.Credit commitments touched US$ 24.28 billion during the year, through a total of 246 LOCs in place as on March 31, 2019, to 63 countries across Africa, Asia, Latin America and the CIS.
  • Project Exports:Towards supporting project exports from India under its commercial window, the Bank disbursed loans and issued guarantees aggregating ` 4,895 crore and the total value of contracts supported amounted to ` 23,500 crore. The Bank supported project exports in countries like Thailand, UAE, USA and 14 countries in Africa.
  • Buyers’ Credit under National Export Insurance Account (BC-NEIA): As on March 31, 2019, Exim Bank has sanctioned Buyers’ Credit of US$ 2.10 billion, under the National Export Insurance Account to finance 21 projects. Some key projects include a water treatment and distribution project in Sri Lanka; transmission line projects in Cameroon, Ethiopia, Mauritania, Senegal and Zambia; railway line project in Ghana; road projects in Maldives and Zambia; and an irrigation project in Suriname. The Bank has also given in-principle commitments for an aggregate amount of US$ 5.32 billion at the behest of several leading Indian project exporters to support 43 projects.
  • Overseas Investment Finance:During 2018-19, the Bank sanctioned funded and non-funded assistance aggregating ` 1,136 crore to Indian companies, to finance their overseas investments in 8 countries. So far, Exim Bank has funded 621 ventures set up by 467 companies in 78 countries, with the value of support aggregating ` 58,427 crore.
  • Profit after Tax (PAT) of the Bank stood at ` 82 crore for 2018-19.

RESOURCES & TREASURY

  • Government of India subscribed ` 5000 crore capitalstrengthening Exim Bank’s ability to raise resources and extend term credit to exporters. The Government also approved an increase in the authorised capital of the Bank, from ` 10,000 crore to ` 20,000 crore.
  • The Bank raised foreign currency resources aggregating US$ 1.22 billion equivalent through a variety of instruments, through a wider investor base and across various geographies.
  • In March 2019, the Bank successfully launched a Reg-S 5-year bond issue of US$ 500 million. The issue attracted a total order book in excess of
    US$ 1.7 billion, thereby achieving more than 3.4 times oversubscription of the issue size, from 117 high-quality investors.
  • Rupee borrowings of `11,092 crore and foreign currency borrowings of
    `7,054 crore equivalentwere raised during the year.
  • Rating: Exim Bank has the highest ratings (AAA)/(A1+) for Rupee debt instruments and its international ratings are at par with Sovereign—Moody’s: Baa2 (Stable); S&P: BBB-(Stable); Fitch: BBB-(Stable); JCRA: BBB+ (Stable).


Key highlights of the Bank’s performance during 2018-19 are as under:

EXPORT FACILITATION

  • During the year, Exim Bank conducted 36 seminars and workshops to increase exporter awareness, on themes broadly classified into export capability creation, industry, country & region focus, and export potential of Indian states.
  • The Bank organises training workshops to support rural artisans and craftsmen of handicraft products to widen their domestic as well as international presence. During the year, training programmes were organised for bamboo artisans in Barpeta, Assam; Kauna grass handicraft makers in Manipur; traditional weavers near Jodhpur in Rajasthan; amla (gooseberry) producers in Pratapgarh, Uttar Pradesh and the women artisans of the Looms of Ladakh Women’s Cooperative in Ladakh.
  • Exim Bank also promotes grassroots enterprises and craftsmen in India by organising a handicraft and handloom exhibition called Exim Bazaar. After the first exhibition in 2017, two more editions of Exim Bazaar were organised in 2018-19. An aggregate of 163 grassroots participants from over 25 Indian states have benefitted from the platform provided by Exim Bank.

ADVISORY AND CONSULTANCY SERVICES

  • During the year, Exim Bank successfully concluded a capacity building activity for the Ghana Export-Import Bank providing technical assistance across various operational areas. Exim Bank will also be guiding the Saudi Eximbank in achieving the Kingdom of Saudi Arabia’s Vision2030, which endeavours to raise the share of the country’s non-oil exports in non-oil GDP from 16 percent to 50 percent by 2030.
  • The Bank is working with the Ministry of Commerce, Government of Indiaand the NITI Aayog, for preparation of an index to rank Indian states on their readiness for exports, which would encourage healthy competition among states. The index will rank states on key parameters, including their policies, ease of doing business, infrastructure, access to finance, and output, amongst others, which will assess the overall export market and exports from each state.
  • Exim Bank is a part of the negotiating team led by the Department of Commerce, Government of India, under the International Working Group (IWG) on Export Credits. IWG is negotiating the guidelines for Officially Supported Export Credits, which is likely to become a ‘successor undertaking’ under the Agreement on Subsidies and Countervailing Measures (ASCM) of the WTO.
  • Exim Bank and the United Nations Development Programme (UNDP) have joined hands for the “Capacity Building of MSMEs in North East India for Export Competitiveness.” The initiative aims at creating stronger MSMEs in India’s north-east region to boost exports, generate employment and provide livelihood opportunities, especially for the youth and women.
  • The Bank has developed an in-house model to generate an Export Leading Index (ELI) to track and forecast the movement in total merchandise and non-oil exports of the country, on a quarterly basis. The model and the forecast result are reviewed periodically by a standing technical committee of domain experts. The forecasts, have been found to be fairly accurate in the past and have been close to the officially released data by the Government of India. As per the Bank’s recently released forecast (on March 06, 2019) (based on the ELI model and the Q4 forecasted value), India’s merchandise exports were forecast to grow at 9.4 per cent with exports amounting to US$ 331.8 billion in 2018-19. This compares well with the official estimates of 9.06 per cent growth and US$ 331.02 billion of exports for the year, released officially on April 15, 2019.
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