The Hindu Business Line : Exim Bank net rises 11%

Mumbai, April 28 Export-Import Bank of India recorded a net profit of Rs 333 crore for the fiscal 2006-07, an increase of 11 per cent from Rs 299 crore last fiscal. The bank saw its loan approvals and disbursements increase by 23 per cent over last year.

In the current fiscal, i.e. 2008-09, Exim Bank is planning to raise resources worth Rs 17,000 crore, of which $1.6 billion will be in foreign currency, said Mr T.C. Venkat Subramanian, Chairman and Managing Director.

“We are targeting a growth of 25 per cent this year, which would be more or less on par with exports. But we will have to look for new markets and look for diversification of trade given the slowdown in the global economy,” he said.

In the just ended fiscal, Exim Bank’s approvals increased to Rs 32,805 crore (Rs 26,762 crore) and disbursements increased to Rs 27,159 crore (Rs 22,076 crore).

The bank raised Rs 14,040 crore of resources, of which Rs 8,905 crore was in rupee and approximately $1.28 billion was in foreign currency.

The sanctioned funded and non-funded assistance for overseas investments of Indian corporates aggregated Rs 5,029 crore. These were loans given for acquisition of overseas companies, for setting up greenfield companies or for expansion of existing plants, said Mr S.R. Rao, Executive Director, Exim Bank.

Niche area

Acquisition financing is a growing area for the bank, which saw sanctions of about Rs 4,500 crore in this segment last year. This was against approximately Rs 2,500 crore sanctioned in 2006-07, said Mr N. Shankar, Executive Director. “This is a niche area for Exim Bank. We have seen a growth of about 70-75 per cent. If not for the global slowdown, acquisition financing would have grown even more,” he said.

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