The Hindu Business Line : Global Trade plans to raise over Rs 7,000 cr

MR ARVIND SONMALE (right), Managing Director & CEO, Global Trade Finance Ltd, with Mr K. A. Menon, COO, at a press conference in Mumbai on Wednesday. — Paul Noronha

Mumbai May 16 Global Trade Finance Ltd (GTF), a Mumbai-based trading finance company promoted by Exim Bank and other financial institutions, plans to raise more than Rs 7,000 crore in the current fiscal.

Mr Arvind Sonmale, Managing Director and Chief Executive Officer, Global Trade Finance, said that funds would be raised in a combination of rupee — Rs 2,350 crore and $120 million in foreign currency.

The company may go in for additional borrowing of about Rs 120 crore, he said.

The non-banking financial company plans to expand its operations in the Tier-II cities.

The NBFC has reported a 117 per cent growth in net profit to Rs 28.87 crore for the financial year ended March 31, 2007, against Rs 13.33 crore in the corresponding period last year. Its factored loan asset for the year grew by 119 per cent to Rs 1749.6 crore (Rs 799 crore).

The company's cost-income ratio stands at 31.07 per cent (38.18 per cent). The capital adequacy ratio is at 10.56 per cent (12.5 per cent) while the gross and net non-performing assets are at zero.

The company's average rate of borrowing was at 8 .5- 9 per cent while the rate of lending is 11 - 12 per cent. Nearly 62 per cent of its business comes from small and medium enterprises while the big corporates account for 38 per cent of the total business. Export Import Bank of India holds 40 per cent stake in the company. Other equity holders are FIM Bank, Malta (38.5 per cent), IFC, Washington (12.5 per cent) and Bank of Maharashtra (9 per cent).

Satellite offices

The NBFC plans to set up 40 satellite offices during the financial year 2007-08 to tap the key SME sectors across the country. GTF has offices at Mumbai, Delhi, Chennai, Kolkata, Ahmedabad, Hyderabad and Bangalore. "The satellite offices will be reporting to one of the seven main offices," Mr Sonmale added.

The company has launched an e-loan programme effective October 2006, whereby an SME customer can get export factoring facility sanctioned online. "The programme ensures availability of credit facility to SMEs in the remote parts of the country."

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