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Role & Functions of Exim Bank

Trivandrum, July 17, 2009

Roshanara Sardar
Manager
Exim Bank, Chennai
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Exim Bank of India


 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)
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Evolving Vision
Product Centric
Approach “To develop commercially viable
Export relationships with a target set of
Credits externally oriented companies by
1982-85 offering them a comprehensive range of
products and services, aimed at
enhancing their internationalisation
Export Capability efforts”
Creation
1986-94

Customer Centric Comprehensive Range of


Approach Products And Services
– All Stages of the Export Business Cycle –
Exim Bank TODAY

Leadership and Expertise in India’s Export Finance


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Organisation
BOARD OF DIRECTORS (16)* OFFICES

 Chairman and Managing Director Domestic Offices: 9 Overseas Offices:6

 5 Directors: Government of India  Ahmedabad  London


 Bangalore  Dakar
 3 Directors: Scheduled Banks
 Chennai  Durban
 4 Directors : Professionals/Experts
 Guwahati  Dubai
 1 Director nominated by RBI
 Hyderabad  Singapore
 1 Director nominated by IDBI
 Kolkata  Washington D.C.
 1 Director nominated by ECGC
 New Delhi
 Mumbai
Appointed
by  Pune
Govt. of India
* As per Exim Bank Act
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Operational Philosophy
International Trade

Financing Promoting Facilitating

Through

Variety of Financing Value Added Business Research &


Programmes Advisory Services Analysis

Catalyst for Financing

Projects Products Services


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Range of Products & Services


Presence Across All Stages of Business Cycle Value Based Services

Export Pre- Advisory


Marketing Shipment Services

Export Post-
Production Shipment Knowledge
Building
Export
Product Investment
Development Abroad
INFORMATION
Import Advisory
Finance Services
SUPPLEMENTS FINANCING PROGRAMMES
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Financing Programmes
Financing Programmes (Various Currencies)

Export Credit Import Credit Loans for Exporting Units

Medium / Long Term - Import Loan for - Term Loans for expansion/
diversification/ new projects/
- Lines of Credit capital goods export product development/
- Buyer’s Credit export marketing/ research &
- Bulk Import Loan for
development
- Supplier’s Credit Raw Materials
- Term Loans for overseas equity
investment
Short Term
- Direct equity stake in Indian/
- Pre/Post Shipment
Overseas ventures of exporting
Credit 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  Pharmaceuticals  Herbal Products


 Needles  Jute Products  Textiles
 Polyester Ropes  Printing Machinery  Software
 Home Appliances  Auto Components  Castings
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Lines of Credit

 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
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Enterprise Management Development Services

 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.
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Global Trade Finance under IFC

 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
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Export Marketing Services


 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 :

 Agricultural Equipments to Senegal  Processed foods to Singapore & Italy


 Ayurvedic Products to Hungary  Agarbathis to S. Africa and Singapore
 Tiger Prawns to a leading restaurant chain in S.Africa
 Natural Sandstone and Tiles to Hungary
 Cotton fabrics to S. Africa
 Lucknow Chikan Kurtas to Singapore
 Incense sticks to Singapore, S. Africa, USA
 Grapes and Pomegranates to Singapore
 Setting up of oil mill on turnkey basis in Senegal (pipeline)
 Seting up of Solar City in Senegal(pipeline)
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Seminars / Workshops

 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:
 International trade & investment  Quality
 Export marketing  Packaging
 Sector and country specific  Business opportunities in multilateral
programmes agencies funded projects
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Research Publications
 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:

 Sports Goods  Chemicals


 Indian Handicrafts  Leather
 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’,
Advantage’ a bimonthly publication in English, Hindi and 10 regional
languages
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Agri 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 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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Institutional Linkages
Multilateral Agencies Trade & Invt. Promotion Agencies Export Credit Agencies
 Board of Investment of  Afrexim Bank
 World Bank
Mauritius  National Bank of Egypt
 EBRD
 Netherlands Council for
 Czech Export
 ADB
Trade Promotion
Bank(CEB)
 African Development
 Board of Investment of
 Belvnesheconombank,
Bank Sri Lanka
Belarus
 MIGA  Sharjah Chamber of
 Czech Export Bank
 IFC Commerce & Industry
 Hungarian Exim Bank
 UNCTAD  Caribbean Association

of Industry & Commerce  Exim Bank of China


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Exim Bank: Partner in Globalisation


 Technology  Final Products
 Capital EX  Capital Goods
POR
(Foreign Investment)
T  Capital
 Raw Materials
(Overseas Ventures)
 Capital Goods

I
M  Product
P Development
O  Production
R
T  Marketing
O N
I  Pre shipment
DIT
VALU D  Post shipment
E A
THANK YOU
Website
www.eximbankindia.in