Money & Banking

Exim bank eyes to raise $3 billion in FY22

Our Bureau Mumbai | Updated on May 22, 2021

Posts a 105% jump in net profit at ₹254 crore in FY21

Export-Import Bank of India may raise about $3 billion in FY22, as against $2 billion in FY21, to support Indian exports, as the global trade is gradually opening up.

David Rasquinha, MD & CEO of the bank, said that he sees demand for pharmaceuticals, chemicals, home textiles, among others, gaining traction as advanced economies are gradually coming out of the Covid-19 pandemic. “This opens up an opportunity for Indian exporters,” said Rasquinha.

Exim Bank expects credit growth in the 7-12 per cent range in FY22 (against 7 per cent in FY21), depending on how quickly the economy revives and how the exchange rate moves.

Harsha Bangari, Deputy Managing Director, observed that the borrowings by Exim Bank will be cautiously calibrated to match credit growth in FY22. In January 2021, the bank had raised $1 billion for a 10-year tenor at a coupon rate of 2.25 per cent in the 144A/Reg-S format.

Meanwhile, Exim Bank, which is a wholly owned government of India subsidiary, reported a 105 per cent jump in net profit at ₹254 crore in FY21 as against ₹124 crore in the year ago period.

Loan portfolio edged up 4.43 per cent year-on-year to ₹1,03,851 crore as at March-end 2021 against ₹99,447 crore in FY20. Non-fund portfolio declined about 10 per cent year-on-year to ₹14,229 crore (₹15,869 crore).

Rasquinha emphasised that Exim Bank gives almost 80 per cent of its loans in foreign currency. So, when rupee appreciates against dollar, the loan portfolio in rupee terms comes down. However, in dollar terms, the loan growth was 7 per cent in FY21.

Published on May 21, 2021

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