EXPORT-IMPORT BANK OF INDIA SHOWS STRONG BUSINESS GROWTH IN 2014-15

BANKING

Exim Bank posts strong business growth in 2014-15

Loan Portfolio of 

the Bank grows 15% to 86,953 crore

Exim Bank announced the Bank’s results 

for the year 2014-15 

by Shrutee Kate/DNS

BUSINESS & FINANCIAL PERFORMANCE

Lines of Credit aggregating US$ 1,669.46 million (17 new LOCs during the year) were extended to support export of projects, goods and services from India. 194 LOCs, covering 63 countries across continents, with credit commitments aggregating US$ 11.68 billion are currently available for utilisation, while a number of prospective LOCs are at various stages of negotiation.

Project Export Contracts: During FY 2014-15, 105 Project Export contracts were secured in 40 countries by 56 exporters, aggregating ` 49,781 crore.  As on March 31, 2015, 414 project export contracts valued at ` 1,89,736 crore (approx.  US$ 30.45 billion), supported by the Bank, were under execution, in 81 countries across Asia, Africa and CIS by 139 Indian companies.

Buyer’s Credit – National Export Insurance Account (BC-NEIA): The Bank has till date sanctioned an aggregate amount of US$ 2.68 billion for 18 projects valued US$ 4.40 billion under Buyer’s Credit – National Export Insurance Account (BC-NEIA). The Bank has also given in-principle commitments for supporting several projects and the current active pipeline includes 25 projects aggregating US$ 3 billion under BC-NEIA.

Overseas Investment assistance was sanctioned to 35 corporates aggregating ` 5,544 crore for financing their overseas investments in 11 countries. So far, Exim Bank has provided finance to 533 ventures set up by 530 companies in 91 countries. Till date, aggregate assistance for overseas investments amounts to ` 43,210 crore.

Profit before tax (PBT) and profit after tax (PAT) of the Bank were at ` 1,135 crore and ` 726 crore     respectively during the year 2014-15.

RESOURCES/TREASURY

During the year, the Bank raised borrowings of varying maturities comprising rupee resources of 18,343 crore and foreign currency resources of ` 13,012 crore equivalent. The Bank is rated investment grade, on par with the country’s Sovereign rating. As on March 31,  2015, the Bank was rated Baa3 (Positive) by Moody's, BBB- (Stable) by Standard & Poor’s, BBB- (Stable) by Fitch Ratings and BBB+ (Stable) by Japan Credit Rating Agency (JCRA). The Bank's Rupee debt instruments continued to enjoy the highest rating viz. AAA rating from the rating agencies, CRISIL and ICRA.

NEW BENCHMARKS IN 

THE INTERNATIONAL CAPITAL MARKETS

During the year, the Bank issued India’s first USD denominated Green bonds. The benchmark sized US$500 million bond issue, with a tenor of 5 years was oversubscribed 3.2 times. Net proceeds from the sale of the notes will fund eligible Green Projects in countries including Bangladesh and Sri Lanka.

The Bank raised JPY 20 billion by way of issue of Samurai bonds. Bank achieved the tightest spread and the lowest coupon, the first sub-one percent, in the history of the JBIC’s GATE facility. The proceeds of the Bond will be to fund Indian project exports to Sri Lanka for financing Railway Projects.

 FINANCIAL PERFORMANCE

·  Loan Portfolio                                       Up 15%         to ` 86,953 cr.

·  Non Funded Portfolio                    :        Up 15 %        to ` 10, 847 cr.

·  Net worth of the Bank                   :        Up 19%         to ` 9,902 cr.

·  Return on Capital to the Central  Government   : Up 28%         to `   433 cr.

·  Total Business                             :        Up 13%      to ` 1,76,511 cr.

·  Capital to Risk Assets Ratio            :        15.34%

·   Net NPAs                                     :        0.60%           (80% provision cover)

NEW INITIATIVES :

Export Development Fund [EDF] facility extended to Iran: The EDF is the special fund, established by GoI under the Exim Bank Act and administered by Exim Bank, to extend loans in the interest of international trade towards meeting strategic objectives. The EDF has recently extended its first loan by way of a Buyer’s Credit Facility of ` 900 crore to Iranian banks, backed by sovereign guarantee from Iran, to finance the export of goods and services from India to Iran.

Special Purpose Facility for Financing Infrastructure Projects in Neighbouring Countries: The Facility would have two windows, viz., concessional window, and commercial window, and undertake financing and support projects. Preliminary announcement by Prime Minister in Kathmandu in November 2014 now being operationalised.

Project Development Company for Promotion of Trade & Investments in CLMV Countries: Exim Bank under the GoI’s ‘Act East Initiative’ had undertaken a Mission to CLMV countries, consequent to which a Project Development Company is being set up, to be followed by a Project Development and Facilitation Framework.

Project Development Company in Africa: Exim Bank, IL&FS, AfDB and SBI have floated a Project Development Company in Africa, based in Mauritius. Two projects in the energy sector, have been identified, one each in Tanzania and Nigeria.