The Hindu Business Line : Exim Bank plans to raise Rs 13,000 cr in 2007-08

Mumbai April 30 Export Import Bank of India plans to raise about Rs 13,000 crore in 2007-08. "Of the total amount, around Rs 6,000 crore will be raised in foreign currency with the rest being in rupees," said Mr T.C. Venkat Subramanian, Chairman and Managing Director, Exim Bank.

During 2006-07, the bank had raised Rs 10,621 crore, comprising rupee resources of Rs 6,461 crore and foreign currency resources of $957 million. Market borrowings as on March 31, 2007 formed 85 per cent of the total resources.

The bank's weighted average costs of funds increased to 7.05 per cent in 2006-07 against 6.25 per cent last year. However, Mr Subramanian admitted to costs stabilising.

SME Loan plans

During 2006-07, a medium term notes programme of $1 billion has been established by the bank to facilitate raising of resources in the international debt capital market on a regular basis.

"The bank is also negotiating a long term line of credit of $250 million from Asian Development Bank without Central Government guarantee, for extending loans to small and medium enterprises," said Mr Subramanian.

The bank will have an option to draw funds in different currencies to meet the needs of its customers.

On the rising rupee against the dollar, Mr Subramanian said it will not affect manufactured goods, which forms 80 per cent of Indian exports. But the exports of services and agri products have been hurt and it is a temporary phase, he said.

In 2006-07, Exim Bank's net profit increased 10.6 per cent to Rs 299 crore. The bank's authorised capital at Rs 1,000 crore is to go up to Rs 2,000 crore with the Government's permission.

Loan approvals increased 31 per cent to Rs 26,762 crore during 2006-07 against Rs 20,489 crore in the previous year while disbursements rose by 47 per cent to Rs 22,076 crore.

During the year, the bank extended 16 lines of credit of $542 million, covering 42 countries to support export projects, goods and services from India. "Project export contracts supported by Exim Bank amounted to Rs 14,000 crore," said a statement by the bank.

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