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The Export Import Bank of India (Exim Bank) reported a turnaround performance, posting a net profit of ₹82 crore in FY19, against a net loss of ₹2,924 crore in the year-ago period.
While the bank’s funded loan portfolio saw a de-growth of ₹13,915 crore to ₹93,617 crore during the financial year, non-funded portfolio, including project-related and financial guarantees, increased by ₹856 crore to ₹14,096 crore.
The bank, which is a Government of India-owned export finance institution, attributed the de-growth in loan portfolio to reorientation in its business, reducing refinance significantly to banks, and stepping up focus on direct finance to exporters, overseas importers, and sovereigns.
Gross non-performing assets (GNPAs) nudged down ₹298 crore during the financial year to ₹11,678 crore as of March-end 2019. Net NPAs declined by ₹1,740 crore to ₹2,288 crore due to loan-loss provisioning.
Recovery
Setting much in store by way of recoveries from large stressed accounts, which have been referred to the National Company Law Tribunal (NCLT) either singly or as part of a consortium, David Rasquinha, Managing Director, said the bank expects to recover up to ₹3,500 crore via this route in FY2020. Exim Bank, which has about ₹9,000 crore worth of stressed assets under the NCLT, expects accounts such as Essar Steel and Alok Industries to see resolution in the next few quarters.
The bank’s net NPAs declined to 2.44 per cent of the net loans and advances as on March 31, 2019, against 3.75 per cent as on March 31, 2018. The provision coverage ratio (PCR) improved to 84.72 per cent as on March 31, 2019, from 71.26 per cent as on March 31, 2018.
“In the loan and guaranteed portfolio, we expect a 10-12 per cent growth in FY2020. In profit, we are targeting at least 25 per cent growth because we have a lot of recoveries coming in,” said Rasquinha.
In order to support its operations, the Exim Bank chief said his bank will raise foreign currency resources aggregating $3 billion in FY2020, against $1.22 billion in the previous year.
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