Role & Functions of Exim Bank

Trivandrum, July 17, 2009

Roshanara Sardar Manager

Exim Bank, Chennai

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SET UP BY AN ACT OF PARLIAMENT IN SEPTEMBER 1981

WHOLLY OWNED BY GOVERNMENT OF INDIA

COMMENCED OPERATIONS IN MARCH 1982

APEX FINANCIAL INSTITUTION

OBJECTIVES:

“… for providing financial assistance to exporters and importers, and for

functioning as the principal financial institution for coordinating the working

of institutions engaged in financing export and import of goods and services

with a view to promoting the country’s international trade…”

“… shall act on business principles with due regard to public interest”

(Export-Import Bank of India Act, 1981)

Exim Bank of IndiaExim Bank of India

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Leadership and Expertise in India’s Export Finance

Comprehensive Range of Products And Services

– All Stages of the Export Business Cycle –

1982-85

1986-94

ExportCredits

Exim Bank TODAY

Export Capability Creation

Product Centric Approach

Customer Centric Approach

“To develop commercially viable relationships with a target set of externally oriented companies by

offering them a comprehensive range of products and services, aimed at

enhancing their internationalisation efforts”

Evolving VisionEvolving Vision

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Organisation

Chairman and Managing Director

5 Directors: Government of India

3 Directors: Scheduled Banks

4 Directors : Professionals/Experts

1 Director nominated by RBI

1 Director nominated by IDBI

1 Director nominated by ECGC

Appointedby

Govt. of India

* As per Exim Bank Act

BOARD OF DIRECTORS (16)* OFFICES

Domestic Offices: 9

Ahmedabad

Bangalore

Chennai

Guwahati

Hyderabad

Kolkata

New Delhi

Mumbai

Pune

Overseas Offices:6

London

Dakar

Durban

Dubai

Singapore

Washington D.C.

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Operational PhilosophyOperational Philosophy

International Trade

FinancingFinancing PromotingPromoting FacilitatingFacilitating

Through

Variety of Financing Variety of Financing ProgrammesProgrammes

Value Added Business Value Added Business Advisory ServicesAdvisory Services

Research & Research & AnalysisAnalysis

Catalyst for Financing

ProjectsProjects ProductsProducts ServicesServices

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Range of Products & ServicesRange of Products & Services

Presence Across All Stages of Business Cycle

INFORMATION

Advisory Services

Knowledge Building

SUPPLEMENTS FINANCING PROGRAMMES

Value Based Services

Pre-Shipment

Export Marketing

Export Production

Export Product

Development

Import Finance

Advisory Services

Investment Abroad

Post-Shipment

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Financing Programmes

Financing Programmes (Various Currencies)

Export CreditExport Credit Import CreditImport Credit Loans for Exporting UnitsLoans for Exporting Units

Medium / Long Term

- Lines of Credit

- Buyer’s Credit

- Supplier’s Credit

Short Term

- Pre/Post Shipment Credit

- Import Loan for

capital goods

-Bulk Import Loan for

Raw Materials

- Term Loans for expansion/ diversification/ new projects/ export product development/ export marketing/ research & development

- Term Loans for overseas equity investment

- Direct equity stake in Indian/ Overseas ventures of exporting companies

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Export Marketing Finance

Administered an Export Marketing Fund from World Bank

SMEs extended export marketing finance to implement strategic export marketing plans aimed at entry into developed country markets and term loans for supply side upgradation

Exim Bank’s assistance resulted in generation of significant exports to developed country markets

Many of these companies have become large companies with high export orientation

Based on the successes achieved in the programme implemented by Exim Bank in India, the Bank has shared its experience with other developing countries, with World Bank funding

Over 300 companies supported in variety sectors:

Knitting

Needles

Polyester Ropes

Home Appliances

Herbal Products

Textiles

Software

Castings

Pharmaceuticals

Jute Products

Printing Machinery

Auto Components

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Exim Bank’s extends export Lines of Credit (LOC) to overseas financial

institutions, regional development banks and foreign governments and their

agencies and Buyers’ Credits (BC) to foreign corporates

LOCs also extended at the behest of Government of India

LOCs serve as a market entry mechanism to Indian exporters and provide a

safe mode of non-recourse financing option to Indian exporters

LOCs/BCs are particularly relevant for Indian SME exporters as the payment

risk is borne by Exim Bank

Bank has in place 117 operative LOCs covering more than 94 countries of

value of over US$ 3.85 billion

Lines of Credit

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Competency as Collateral :

Development of Loan.Com an IT tool kit which will enable SMEs to develop bankable business plans thereby enhancing their access to finance

Tool kit will also enable lending institutions to screen viable projects

Pioneering initiative for supporting SMEs and for providing term loans and export finance facilities to identified units to help them in their globalisation efforts.

Learning from the programme to be transferred to other developing countries; capacity creation and institution building in the global arena.

Exim Bank has already financed select firms by way of term loans and export finance facilities, using the tool kit

THIS INITIATIVE HAS BEEN LAUNCHED BY ITC FOR THE FIRST TIME WITH EXIM BANK AS A PARTNER.

Enterprise Management Development Services

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Agreement between Exim Bank and International Finance Corporation

(IFC)

Envisages confirmation of Letters of Credit (L/Cs), Standby letters of

Credit, demand guarantees, promissory notes or bills of exchange

received by Indian exporters

From 105 pre-approved banks in more than fifty countries of IFC’s

operation

Covers the risk of non-payment by Issuing Bank to Negotiating / Paying

banks

Global Trade Finance under IFC

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Exim Bank has launched an ‘Export Marketing Services’ programme

Seeks to help Indian SME sector to establish their products overseas and enter new markets through Exim’s overseas

offices and institutional partner network

Helps Indian SMEs in their export efforts by proactively assisting in locating overseas buyers/partners for their

products/services

No upfront fees, but operates on success-fee basis

Some of the sectors assisted include :

Export Marketing Services

Agricultural Equipments to Senegal

Ayurvedic Products to Hungary

Tiger Prawns to a leading restaurant chain in S.Africa

Cotton fabrics to S. Africa

Incense sticks to Singapore, S. Africa, USA

Setting up of oil mill on turnkey basis in Senegal (pipeline)

Seting up of Solar City in Senegal(pipeline)

Processed foods to Singapore & Italy

Agarbathis to S. Africa and Singapore

Natural Sandstone and Tiles to Hungary

Lucknow Chikan Kurtas to Singapore

Grapes and Pomegranates to Singapore

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Eximius Centres of Learning for knowledge building & capacity creation for SMEs

– Bangalore/Pune/ Ahmedabad

Set up to organise seminars and workshops for the benefit of exporting

companies, particularly SMEs

Subjects include:

Seminars / Workshops

International trade & investment

Export marketing

Sector and country specific

programmes

Quality

Packaging

Business opportunities in multilateral

agencies funded projects

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Exim Bank has brought out Research Papers pertaining to SMEs on policies,

institutional support and infrastructure

Institutional Support to SMEs: A Study of Select Sectors

Institutional Support Systems for SMEs in India and International Experiences

Export Performance of Small and Medium Enterprises in India

Others research papers on sectors that are predominated by SMEs include:

Research Publications

The Bank has also brought out a publication on ‘Business Practices of Successful Indian Exporters’, outlining the internationalisation strategies adopted by successful Indian firms including SMEs

‘Agri Export Advantage’Agri Export Advantage’, a bimonthly publication in English, Hindi and 10 regional languages

Sports Goods Indian Handicrafts

Chemicals Leather

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Agri Business GroupAgri Business Group

The Bank has put in place an ‘Agri Business Group’

The Group looks for viable projects and export transactions in agriculture sector.

The Bank has set up an agro-portal, in-house, which is an IT initiative to promote

knowledge-based agriculture enterprise. www.eximbankagro.in

The Bank brings out a bi-monthly newsletter ‘Agri Export Advantage’ to facilitate

information dissemination in 10 regional languages.

Brought out following study reports;

Organic Farming

Plantation Sector

Agro & Processed foods –Export Opportunities

Assisted a number of Small and Medium exporters in the Agro Sector covering

following products;

Honey, Mango pulp, mushrooms, gherkins,fresh & processed fruits & Vegetables

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Promoting InvestmentPromoting Investment

Supporting two-way investment

Comprehensive assistance:

Pre investment advisory services

Finance through debt and equity

Finance available for:

Greenfield projects;

Brownfield expansion;

Overseas acquisitions directly or through special purpose vehicles

Direct equity participation in Indian ventures abroad

Joint investments by Indian and overseas company in third country markets in addition

to facilitating investments into India.

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World Bank

EBRD

ADB

African Development

Bank

MIGA

IFC

UNCTAD

Multilateral Agencies Trade & Invt. Promotion Agencies Export Credit Agencies

Board of Investment of

Mauritius

Netherlands Council for

Trade Promotion

Board of Investment of

Sri Lanka

Sharjah Chamber of

Commerce & Industry

Caribbean Association

of Industry & Commerce

Afrexim Bank

National Bank of Egypt

Czech Export

Bank(CEB)

Belvnesheconombank,

Belarus

Czech Export Bank

Hungarian Exim Bank

Exim Bank of China

Institutional Linkages

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Exim Bank: Partner in GlobalisationExim Bank: Partner in Globalisation

Technology

Capital

(Foreign Investment)

Raw Materials

Capital Goods

Final Products

Capital Goods

Capital

(Overseas Ventures)

Product

Development

Production

Marketing

Pre shipment

Post shipmentVALUEVALUE ADDITIO

N

ADDITION

EXPORT

EXPORT

MMII

TTRR

OOPP

THANK YOUTHANK YOUTHANK YOUTHANK YOU

WebsiteWebsite

www.eximbankindia.inwww.eximbankindia.in