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Export-Import Bank of India (India Exim Bank) has raised ₹8,288 crore so far in the current financial year.
“During the period April-August 2023, the bank has raised an aggregate amount of ₹8,288 crore comprising foreign currency resources equivalent of approximately $600 million (₹4,940 crore) and rupee resources of ₹3,348 crore,’’ Harsha Bangari, Managing Director, Exim Bank told businessline.
“We have a resource plan for the full year but actual fundraising will depend on the market conditions,’’ she said. In FY24, Exim Bank plans to raise $4 billion via overseas debt and ₹40,000-45,000 crore in the domestic market.
EXPANSION
The bank has lined up expansion plans. “There are diverse expansion plans in terms of physical infrastructure as well offerings. There has already been a renewed focus on the trade side. With the opening of our subsidiary, India Exim Finserve IFSC Private Limited (Exim Finserve), at the Gujarat International Financial Tec-City (GIFT City) export factoring will also go up,’‘ she said.
Exim Finserve, which was inaugurated formally last month, will extend a comprehensive range of trade finance products to Indian exporters, with a primary focus on export factoring. The factoring services would be particularly beneficial for MSME exporters as it is primarily based on the quality of accounts receivable, rather than collateral.
The factoring market in India is still in its infancy, at around $500 million, and is expected to see significant growth going forward, as per industry estimates. The bank is also looking at financing Telugu movies on the lines of what it has already done in in Mumbai and some other States as “films are huge foreign exchange earners.’‘
“We are also looking at opening more offices in India and overseas, the details of which are being worked out,’‘ she added. The bank has 10 offices in India apart from its head office in Mumbai and the recently opened subsidiary at GIFT City. It has nine offices overseas.
On the market scenario, Bangari said, “In the current fiscal, we have fared reasonably well and fiscal prudence is maintained. While the inflation has now come down, we should wait till the end of September for a better understanding of inflation.” Things are “good” in terms of GDP and exports are lined up as per targets, the Exim Bank Chief added.
Exim Bank posted a net profit of ₹1,556 crore for FY23, compared to ₹738 crore in the previous year.
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