ib- exim bank functions

8/8/2019 Ib- Exim Bank Functions

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EXIM BANKPresented by

Anuja Kingar (0911061)

Monica Khothari (0911064)Poornima Nair (0911065)Sonal Agarwal (0911067)



EXPORT IMPORT BANK OF INDIA Is the premier export finance institution of the country, set up in 1982

under the Export-Import Bank of India Act 1981. Set up by an act of theparliament

Wholly owned by the government of India.

Commenced operations in the year 1982.

Government of India launched the institution with a mandate, not just to

enhance exports fromIndia, but to integrate the country foreign trade andinvestment with the overall economic growth

Exim Bank of India has been both a catalyst and a key player in thepromotion of cross border trade and investment.



Initiatives of Exim O ver the period, evolved into an institution that plays a major role

in partnering Indian industries, particularly the Small and Medium

Enterprises, in their globalization efforts, through a wide range of

products and services offered at all stages of the business cycle,starting from import of technology and export product development

to export production, export marketing, pre-shipment and post-

shipment and overseas investment.

The bank offers wide-ranging services for enhancing the prospect of

Indian project exports.

The bank offers support to small and medium enterprises in their

export marketing efforts consisting of financing the soft expenditure

linking to completion of tactical and systematic export market

development plans.



Objectives O ver the period, evolved into an institution that plays a major role in

partnering Indian industries, particularly the Small and MediumEnterprises, in their globalization efforts, through a wide range of productsand services offered at all stages of the business cycle, starting from importof technology and export product development to export production, exportmarketing, pre-shipment and post-shipment and overseas investment.

The bank offers wide-ranging services for enhancing the prospect of Indianproject exports.

The bank offers support to small and medium enterprises in their exportmarketing efforts consisting of financing the soft expenditure linking tocompletion of tactical and systematic export market development plans.



Roles of EXIM Bank

Export-Import Bank of India plays the role of source of finance, promoter,coordinator and consultation to India's Foreign Trade.

The bank is the coordinator of the Working Group Mechanism for theclearance of projects, service exports and deferred payment exports. Thisgroup comprises of Exim Bank and Government of India representativesfrom the Ministries of Finance, Commerce and external Affairs, ExportCredit Guarantee Corporation of India Ltd, commercial banks that arecertified foreign exchange dealers and the Reserve Bank of India.

This working group gives clearance to contracts sponsored by Exim Bank orcommercial banks and operates as a single window mechanism forclearance of export proposal terms.



Catalytic Role of EXIM

First institution to finance & promote computer software exports(1986)

Set up global trade finance ltd. As a joint venture with IFC in 2001for providing export factoring facility as an alternative tradefinancing instrument.

Introduced programmes for financing R&D, export productdevelopment, qualify certification, export oriented film financingetc.

Launched the Asian EXIM Banks Forum in 1996 and brought

together 8 EXIM Banks operating in Asia to promote intra- regionaltrade and reduce transaction cost.



Organisation Chart

Chairman and managing director 5 directors : Government of India

4 directors : professionals/ experts

1 director nominated by RBI1 director : nominated by IDBI

1 director : nominated by ECGCType Title Here

Government of India



Financing Programmes

THERE ARE 3 TY PES OF FINACING PR OGRAMMES ADOPTED B Y EXIM

EXPOR T CREDIT

IMPOR T CREDIT

LO ANS FOR EXPOR TING UNITS



FUNCTIONS OFEXIM BANK



Finance for Export Oriented Units Term Finance:

a) For Exporting Companies: Project finance, equipment finance, import of technology & related services, domestic acquisitions of businesses, exportproduct development/ R & D, General Corporate Finance

b) For Non-Exporting Companies: Import of Equipment

Working Capital Finance:a) For Exporting Companies:

Funded:

Working CapitalT

erm Loans [< 2 years], LongT

erm WorkingCapital [up to 5 years], Export Bills Discounting, Export Packing Credit,Cash Flow financing.Non Funded: Letter of Credit Limits, Guarantee Limits

b) For Non-Exporting Companies: Bulk Import of Raw Material.



Export Finance: Pre-shipment Credit, Post Shipment Credit, Buyers'Credit, Suppliers' Credit [including deferred payment credit], BillsDiscounting, Export Receivables Financing, Warehousing Finance, Export

Lines of Credit (Non-recourse finance) Equity Participation:

For Exporting Companies: To part finance project expenditure(Project, inter alia, includes new project/expansion/ acquisition of business/company/brands/r & d)



Export Credits Can be availed of by Indian companies, commercial banks and overseas

entities.

For Indian Companies executing contracts ov erseas :

Pre-shipment creditExim Bank's Pre-shipment Credit facility, in Indian Rupees and foreigncurrency, provides access to finance at the manufacturing stage - enablingexporters to purchase raw materials and other inputs.

Supplier's CreditThis facility enables Indian exporters to extend term credit to importers

(overseas) of eligible goods at the post-shipment stage.

For Project ExportersIndian project exporters incur Rupee expenditure while executing overseasproject export contracts i.e. costs of mobilisation/acquisition of materials,personnel and equipment etc. Exim Bank's facility helps them meet these

expenses.



For Exporters of Consultancy and Technological Ser v icesExim Bank offers a special credit facility to Indian exporters of

consultancy and technology services, so that they can, in turn, extendterm credit to overseas importers.

Guarantee FacilitiesIndian companies can avail of these to furnish requisite guarantees tofacilitate execution of export contracts and import transactions.



Small and Medium Enterprises Finance

Contributes in achieving various socio-economic objectives, such asemployment generation, contribution to national output and exports,fostering new entrepreneurship and to provide depth to the industrial baseof the economy.

providing business leads, handholding during the process of winning anexport contract and thus assisting the generation of export business onsuccess fee basis, countries/ sector information dissemination, capacity building in niche areas such as quality, safety, export marketing, etc. andfinancial advisory services such as loan syndication, etc.



Agri Finance Exim Bank has a dedicated Agri Business Group to cater to the financing

needs of export oriented companies dealing in agricultural products.

Financial assistance is provided by way of term loans, pre-shipment/post-shipment credit, overseas buyers' credit, bulk import finance, guaranteesetc.

The Bank has strong linkages with other stakeholders in agri sector such asMinistry of Food Processing Industries, GoI, NABARD, APEDA, SmallFarmers' Agri-Business Consortium (SFAC), NationalHorticultural Boardetc. Apart from financing, the Bank also provides a range of advisory

services to agri exporters.



Overseas Investment Finance

Finance for Indian Company's equity participation in the overseas Joint Venture (JV)/ Wholly O wned Subsidiary (W OS)

Direct Finance (Term & Working Capital) to the overseas JV / W OS

Finance (for equity/debt component) for acquisition of overseas businesses / companies including leveraged buy-outs includingstructured financing options

Direct Equity by Exim Bank in the overseas JV/ W OS of an IndianCompany



Lines of Credit

Exim Bank extends Lines of Credit (LOCs) to overseas financial institutions,regional development banks, sovereign governments and other entitiesoverseas, to enable buyers in those countries, to import goods and servicesfrom India on deferred credit terms.

The Indian exporters can obtain payment of eligible value from Exim Bank, without recourse to them, against negotiation of shipping documents.

LOC is a financing mechanism that provides a safe mode of non-recoursefinancing option to Indian exporters, especially to SMEs, and serves as aneffective market entry tool.



LOC·s Procedural

Flowchart

1. Exim Bank signs agreement with Borrow er and announces when effective.

2. Exporter checks procedures and Service fee with Exim Bank and negotiatescontract with Importer.

3. Importer consults borrow er and signs contract with exporter.4. Borrow er approves contract.

5.

Exim Bank approves contract and advises borrow er andalso exporter and commercial bank .6. Exporter ships goods.7. Commercial bank negotiates shipping documents and pays exporter.8. Exim Bank reimburses Commercial bank on receipt of claim by debit

to borrow er.

9.

Borrow er repays Exim Bank on due date.



Export Services A d v isory Ser v ices

Multilateral Agencies Funded Projects O verseas (MAFPO)Promoting Indian Consultancy Exim Bank as a Consultant

Know ledge BuildingEXIMUS Centres for Learning ± Ahmedabad, Bangalore and PuneResearch StudiesSector StudiesBilateralTrade and Investment StudiesMacro Economic Environment

InformationExporters/Importers, Industry/Market Reports, Trade Regulations & Laws,Country Reports, International Quality Standards, Partner Identification,Product Display



Promotional ProgrammesProject Preparatory ServicesO verseas Programme

Export Marketing Ser v icesProvides assistance to Indian companies, to enable them establish their

products in overseas markets through its Export Marketing Services,starting from identification of prospective business partners to facilitatingplacement of final orders.Leverages the Bank¶s high international standing, in-depth knowledge andunderstanding of the international markets and well establishedinstitutional linkages, coupled with its physical presence, to support Indiancompanies in their overseas marketing efforts on a success fee basis. S ervices offered across sectors: Marine Products, Textiles, Food Processing,Office Stationery, Ayurveda Cosemetics/Medicines.



Rural Initiative

Exim Bank believes that there is a strong linkage between exportdevelopment and poverty reduction. For a country like India, with a large(70%) rural population, creation of export capability in rural grassrootenterprise is a must.

Rural enterprises suffer from various handicaps including image, quality,capacity, packaging, delivery, etc. NGOs and SHGs are the front for ruralenterprises.



Film Finance Cashflow financing for film production

Cashflow financing for film distribution/exhibition in overseas markets

Term loans for fixed assets finance

Term financing for export market development

The Indian film industry is an integral part of the Indian socio-economicpsyche and the most popular source of entertainment in the country.

The Indian film industry comprises of a cluster of regional film industries,like Hindi, Telugu, Tamil, Kannada, Malayalam, Bengali etc. This makes itone of the most complex and fragmented national film industries in the

world.

ib- exim bank functions

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