Exim Bank posts robust business growth in 2015-16

BANKING / FINANCE

Loan Portfolio of the Bank crosses Rs. 1 lakh crore milestone

Exim Bank’s Chairman and Managing Director, Mr. Yaduvendra Mathur announced the Bank’s results for the year 2015-16. 

BUSINESS & FINANCIAL PERFORMANCE

Lines of Credit: As on March 31, 2016, the Bank had in place 203 LOCs, covering 63 countries with credit commitments of over US$ 14.26 billion. During FY 2016, 9 LOCs amounting to US$ 2.61 billion were extended to Bangladesh, Cote d’Ivoire, Congo, Guyana, Guinea, Tanzania, Zimbabwe, and Myanmar.

Project Export Contracts: During FY 2015-16, 95 Project Export contracts were secured in 39 countries by 50 exporters, aggregating ` 22,551 crore.  

Buyer’s Credit – National Export Insurance Account (BC-NEIA): The Bank had till March 31, 2016, sanctioned US$ 2.19 billion for 22 projects valued US$ 2.49 billion under the 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 36 proposals aggregating US$ 5.11 billion under BC-NEIA.

 FINANCIAL PERFORMANCE

· Loan Portfolio : Up 18% to Rs. 1,02, 537 crore.

· Net worth of the Bank :  Up 16% to Rs. 11,486 crore.

· Non Funded Portfolio :   Up 6.5 % to Rs. 11,555 crore

· Total Business         :    Up 17% to Rs. 2,07,409 crore.

·Capital to Risk Assets Ratio :  14.55%

· Net NPAs                           :  0.86%

Overseas Investment: During the year ended March 31, 2016, the Bank’s approvals under the Overseas Investment Finance Programme amounted to Rs. 5,264 crore, comprising Rs. 5,217 crore towards acquisition/setting up of 26 overseas ventures; and Rs. 47 crore towards renewal of existing facilities

Profit before tax (PBT) and profit after tax (PAT) of the Bank were at Rs. 453 crore and Rs. 316 crore     respectively during the year 2015-16.

RESOURCES/TREASURY

During the year, the Bank raised borrowings of varying maturities comprising rupee resources of  Rs. 23,183 crore and foreign currency resources of Rs. 13,781 crore equivalent. The Bank is rated investment grade, on par with the country’s Sovereign rating. As on March 31,  2016, 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.

BENCHMARKS IN THE INTERNATIONAL CAPITAL MARKETS

Successfully launched a 5 year Reg S Green Bond issue of US$ 500 million. The 1st ever USD-denominated Green bond offering out of India - 1st benchmark-sized Green bond out of Asia in 2015 - and the 3rd ever Green bond issuance out of Asia. Attracted subscription of around 3.2 times the issue size, led by strong demand, across 140 accounts, with significant participation from green investors and real money accounts, upsized from $ 250 million. Launched a 5.5 year Reg S Bond issue of US$ 500 million. Issue attracted a total order book in excess of US$ 1.25 bn. thereby achieving 2.5x oversubscription of the issue size from over 110 investors.

The Bank raised US$ 162.26 million equivalent by way of Uridashi Bonds in two different currencies viz., Australian Dollar and United States Dollars thereby achieving diversification of investor base. The USD swapped price of the Bonds was inside the fair value of the Bank’s outstanding public USD bonds for similar tenor. The Bank has now tapped the Uridashi Bond market on four occasions and continues to be the only Indian entity in this market.

ADVISORY & CONSULTANCY SERVICES

Special Purpose Facility for Financing Strategic Infrastructure Projects in Neighbouring Countries: Exim Bank with the support of GoI, has extended commitment to finance the strategic Maitree Power Project in Bangladesh valued US$ 1.8 billion. BHEL has emerged as the lowest bidder, against global competition. The project known as Bangladesh India Friendship Power Company Ltd. is a 50:50 JV between NTPC and the Bangladesh Power Development Board. Once commissioned, it is expected to be the largest power plant in Bangladesh. The project saw many firsts – it was the first super-critical overseas power project in which BHEL has been involved – and the first being developed by NTPC overseas.

Initiatives for Renewable Energy: Exim Bank has been partnering the Ministry of New and Renewable Energy, GoI, in its plan towards establishing the International Solar Alliance drawn as a part of the COP21 initiative in Paris, to boost solar energy in developing countries. Exim Bank is also a part of the Advisory Committee of ISA, and had given a presentation at the 2nd Steering Committee of the ISA, in Abu Dhabi in January 2016, towards promoting 10,000 MW of solar projects. Bank has also conducted a Study entitled “International Solar Alliance: Nurturing Possibilities.”

Export Development Fund: In terms of the Exim Bank Act, the Export Development Fund is a distinct Fund with an independent balance sheet and earnings statement. The fund can be utilized only for specified activities as may be approved by GoI. GoI has approved an amount of upto ` 3,000 crore of Buyer’s Credit facility to seven Iranian banks for utilisation towards import of steel rails from India and Development of Chabahar Port Project. The credit facility will also be guaranteed by GoI.

Kukuza Project Development Company: Exim Bank, IL&FS, AfDB and SBI have floated the Kukuza Project ·Development Company (PDC) for Africa, based out of Nairobi. A few projects in Africa are currently under consideration by the PDC.