Exim Bank net down 4% due to higher provisioning

Satyanarayan Iyer Mumbai | Updated on April 30, 2014 Published on April 30, 2014

Export-Import Bank of India’s net profit dropped four per cent to Rs 710 crore (Rs 742 crore) for the financial year 2013-14 on account of higher provisioning which the bank described as a “conservative” step.

The Mumbai-based development finance institution’s loan assets grew 16 per cent to Rs 75,900 crore for the year ended March 31, 2014.

According to Yaduvendra Mathur, Chairman & Managing Director, the Government (being a majority shareholder in the bank) sets out profit target for the bank.

Profit target

Mathur, the first bureaucrat to head the bank since its inception in 1982, said that if the Government brings down the profit target, the bank could lend at more concessional rates. He, however, cautioned that such a move would be like a double edged-sword as it will be perceived negatively by the rating institutions.

Mathur described the bank’s profit as “healthy''.

“A part of the profit will be ploughed back into the business and a part of it will be given to the Government… So, this year the Government will get back Rs 339 crore from the bank,” the IAS officer added.

The Government will infuse Rs 1,300 crore into the bank in FY'15. It had given Rs 700 crore to the bank in FY'14.

Stressed assets

The bank restructured assets worth Rs 1,400 crore in FY'14 and said that it has assets worth Rs 400 crore in the restructuring pipeline.

Gross non-performing assets improved to 2.1 per cent of total advances (2.31 per cent last year), while net non-performing assets went down to 0.43 per cent (0.47 per cent).

Mathur said that steel and shipping sectors witnessed more stress than others last year.

Published on April 30, 2014

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