The Hindu Business Line : Exim Bank funding for buys overseas may touch Rs 800 cr

EXPORT Import Bank of India is keen on funding overseas acquisitions by Indian companies. It is assessing about half a dozen proposals, which, if financed, will take its exposure to about Rs 800 crore by the end of this fiscal.

Exim Bank, which funded several deals last year worth about Rs 550 crore, hopes to support domestic companies' efforts at acquiring assets in other markets.

The proposals under consideration relate to sectors such as auto components, textiles and pharmaceuticals, said Mr S. Sridhar, Executive Director of Exim Bank, adding that the most prominent among the recent deals was the acquisition by Crompton Greaves of a Belgain transformer company. There are also plans to finance acquisitions in the local market, provided the companies involved have a significant export potential.

Exim Bank, whose funded facilities stood at roughly Rs 11,500 crore, is looking at a 25-per cent increase on this front this year. Non-fund portfolio, at about Rs 2,500 crore, is also set to grow by 25 per cent. Export lines of credit — 50-plus lines in operation involving $1.26 billion — are being negotiated; the amount involved here is $1 billion, Mr Sridhar said, referring particularly to a transaction in Mauritius.

Exim Bank also plans to partner with domestic banks, especially those with overseas branches, in markets that can absorb Indian exports.

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