unit 2 7 world bank exim bank of india

8/23/2019 Unit 2 7 World Bank Exim Bank of India

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INTERNATIONAL BUSINESS

MANAGEMENT

4/1/2013 a.velsamy, sona school of management 1

EXIM BANK OF INDIA,

WORLD BANK,



,

Exim Bank

SET UP BY AN ACT OF PARLIAMENT IN

SEPTEMBER, 1981

WHOLLY OWNED BY GOVERNMENT OF INDIA

COMMENCED OPERATIONS IN MARCH, 1982

COMPLETING 23 YEARS OF OPERATIONS IN

END - MARCH 2005



Established “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…”

Source : Export-Import Bank of India Act, 1981

Objectives



Leadership and Expertise in India‟s Export Finance

Comprehensive Range of Products And Services

– All Stages of the Business Cycle –

1982-85

1986-94

ExportCredits

Exim Bank TODAY

Export CapabilityCreation

Product CentricApproach

Customer CentricApproach

“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 internationalisationefforts”

Evolving Vision



We are at All Stages of theExport Business

Pre-shipment

ExportMarketing

Export

Production

ExportProduct

Development

ImportFinance

AdvisoryServices

InvestmentAbroad

Post-

shipment



Network of 14 Offices in India & Overseas

Delhi

Chennai

Bangalore

Pune

Mumbai

KolkataAhmedabad

Head Office

+

9 Domestic Offices

Hyderabad

Guwahati



Network of 14 Offices in India and Overseas

Washington D.C.Milan

Budapest

Singapore

Johannesburg



Role of Exim Bank

Principal financial institution in India for

coordinating working of institutions engaged in

financing exports and imports

Range of Financing Programmes

Export Services

Support Programmes

Export Credits

Finance for Export Oriented Companies



Export Credits

Pre-shipment creditForeign Currency Pre-shipment CreditPost-shipment Supplier‟s

CreditFinance for deemed exportsFinancing RupeeExpenditure for ProjectExportsFinance for Consultancyand Technology ServicesGuarantee FacilitiesForfaiting

For Indian Companies

Export BillsRediscountingRefinance of

Supplier‟s Credit

Foreign Currency Pre-shipment Credit

Buyer‟s Credit

Lines of Credit

Commercial Banks

Overseas Entities



Lines of Credit

Overseas Governments

Parastatal Organisations/ Govt. Agencies

Commercial Banks

Regional Financial Institutions

Particularly relevant for SMEs

Eligible items – all items permissible under Exim Policy

Engineering Goods

Consumer Durables

Commodities

C i d d LOC



AFRICA ASIA EUROPE

Countries covered under LOCsof Exim Bank

ALGERIA

GHANA

KENYA

MALAWI

MAURITIUS

NAMIBIA

SEYCHELLES

SOUTH AFRICASUDAN

TANZANIA

TUNISIA

UGANDA

ZAMBIA

ANGOLA DR. CONGO

BOAD covering BENIN BURKINA FASO

COTE D’IVOIRE

MALI

NIGER

SENEGAL

GUINEA BISSAUTOGO

BANGLADESH INDONESIA

IRAQ

KOREA

MALAYSIA

THAILAND

VIETNAM

IRAN

PHILIPPINES

SRI LANKA

MYANMAR

CAMBODIA

BULGARIA

ROMANIA

RUSSIA

POLAND

KAZAKHSTAN

HUNGARY

JAMAICA

TIRINIDAD &TOBAGOMEXICO

CAF covering

BOLIVIA

COLOMBIA

ECUADOR

PERU

VENEZUELA

Central & South AMERICA

PTA BANK covering

BURUNDI MOROCCO

COMOROS

DJIBOUTI

EGYPT

ERITREA

ETHIOPIA

KENYA

MALAWI

MAURITIUS

RWANDA

SOMALIA

SUDAN

TANZANIA

UGANDAZAMBIAZIMBABWE EADB covering

KENYA

TANZANIA

UGANDA

VENEZUELA

BRAZILCOLOMBIA

BCIE coveringHONDURAS NICARAGUAGUATEMALAEL SALVADOR COSTA RICA



Software Training

Institutes

Minor Ports

Technology Parks

EOU Projects &

TUFS

Financing of Export-Oriented Companies

Term Loans

Project

Finance

Equipment

Finance

Working

Capital

Overseas

Investment Finance

Long Term

upto 5 years

Term Loans

for 1-2 years

Loans to Indian

companies for Equity

Investment in their

ventures overseas

Loans to Indiancompanies to onlend

to their overseas

ventures

Other

Programmes

Export

Marketing

Finance

Export Product

Development

Finance for

R&D

Short Term

< 1 year

Direct Equity stake



INFORMATION

Markets, Products, Countries

KNOWLEDGE BUILDING

- Eximius Centre for Learning- Research Studies

ADVISORY

SERVICES

- Multilateral Agencies-

Funded Projects Overseas- Exim Bank as Consultant

SUPPLEMENTS FINANCING PROGRAMMES

Value Based Services



Servicesthrough

Bank’s Network Head Office

Overseas Offices - 5

Domestic Offices - 9

Institutional Linkages

Export Credit Agencies

Trade & Investment Promotion Agencies Abroad

Trade & Industry Associations in India Multilateral Agencies

Supported by Indian Missions Abroad



Exim Bank : Partner in Globalisation

Technology

Capital (Foreign Investment)

Raw Materials

Capital Goods

Final Products

Capital Goods

Capital(OverseasVentures)

ProductDevelopment

Production

Marketing

Pre shipment

Post shipment

I

T



THANK YOU

www.eximbankindia.com



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

Appointed

by

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.



Financing Programmes

Financing Programmes (VariousCurrencies)

Export Credit Import Credit Loans 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 overseasequity investment

- Direct equity stake in Indian/

Overseas ventures of

exporting companies



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



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



• 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 andexport 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 exportfinance facilities, using the tool kit

THIS INITIATIVE HAS BEEN LAUNCHED BY ITC FOR THE FIRST TIME WITH

EXIM BANK AS A PARTNER.

Enterprise ManagementDevelopment Services



Agreement between Exim Bank and International FinanceCorporation (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



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



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

Afrexim Bank

National Bank of

Egypt

Czech Export

Bank(CEB)

Belvnesheconomba

nk, Belarus

Czech Export Bank

Hungarian Exim

Bank

Institutional Linkages

unit 2 7 world bank exim bank of india

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