The Hindu Business Line : Exim Bank to raise more funds

Export Import Bank of India (Exim Bank) plans to raise Rs 6,000 crore in rupees and $800 million in foreign currencies by the end of the current fiscal. The bank, which had raised about Rs 4,300 crore and $785 million in rupees and foreign currency, respectively, in the past year, has set a higher resource-raising target for 2006-07, keeping in view its requirements, Mr T.C. Venkat Subramanian, Chairman and Managing Director, said.

Addressing a FICCI meeting here on Friday, Mr Venkat Subramanian said that in 2005-06, the bank had recorded disbursements of roughly Rs 15,000 crore, while its loan portfolio stood at Rs 18,000 crore or so. These represented growth of over 30 per cent in both cases, it was pointed out.

Emerging markets

Exim Bank, which funds Indian companies' efforts to start export-oriented activities (as well as specific transactions), sees considerable opportunities emerge in areas such as pharmaceuticals and textiles.

Textiles, for instance, is viewed as a potential sector, especially because of changes in quota norms. However, Chinese textiles companies are said to be ahead in the race because of major investments made in their upgradation.

On the pharma front, the bank is aware that a number of Indian drug companies have stepped up exports in recent times. Also, some of them have acquired foreign outfits (including leading player Dr Reddy's), a few of which were funded partly by Exim Bank.

More tie-ups

While on an average Indian investment abroad has topped $1 billion annually, data provided by Exim Bank suggests that over 180 projects currently have export contracts valued at $6.4 billion - under execution in 38 countries by more than 40 exporters.

Nearer home, the bank has decided to tie up with major NGOs and various other organisations with a view to provide small entrepreneurs a distinct global access. The aim is to enable grassroots outfits to secure export linkages, it is pointed out.

Its tie-ups include those with BASICS, the well-known Hyderabad-based institution. Among its plans, is a programme aimed at promoting Madhubani paintings.

Plans $100-m fund

Exim Bank has decided to form a $100-million fund in association with IL&FS and Orix, the Japanese institution. The fund, for which the bank will act as an "anchor investor" with a contribution of $10 million, will consider investments in various Asian countries.

The bank will help identify promising investment opportunities and work out project reports. The idea is to allow more Indian companies play strategic roles in such projects. Exim Bank will also look at taking small equity stakes in specific ventures, along with providing funds to the Indian companies involved. In a few cases, including in a few recent ones, it has already done so.

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