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Exim Bank Final
Exim Bank Final
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FINANCE
9 PERFORMANCE 20
10 BIBLIOGRAPHY 28
INTRODUCTION
1981.
internationalization efforts.
4. There are apex institutions in the country, which deal with major economic
5. The Industrial Development Bank of India extends term industrial loans; the
National Bank for Agricultural loans; and the Exim Bank extends term loans for
foreign trade.
6. All these institutions are wholesale banks. They, therefore work closely
with commercial banks and other state level financial institutions that operate the
international trade……”
• Domestic Offices:
Introduction:
overseas, to enable buyers in those countries, to import goods and services from
India on deferred credit terms. The Indian exporters can obtain payment of
eligible value from Exim Bank, without recourse to them, against negotiation of
(Borrower) and announces the availability of LOC for utilization, when the
2. Exporter checks with Exim Bank, available amount under the LOC and
quantum of service fee payable to Exim Bank and negotiates contract with
Importer.
refers to Exim Bank for concurrence for inclusion of contract for being financed
terms of LOC. Exim Bank conveys contract approval to the exporter and the
Borrower.
also opening of a Letter of Credit, which states that the contract is covered under
Exim Bank's LOC to the Borrower and reimbursement will be by Exim Bank for
9. Exim Bank reimburses the Negotiating Bank, on receipt of valid claim and
durables and any other items eligible for being exported under the 'Exim Policy'
General
• Exporters are advised to check with Exim Bank before finalizing the
contracts with the buyers, details of service fee and other charges, if any,
payable by the exporters on the contracts to be covered under the relative LOC.
General Verification:
Exporters are advised to check with Exim Bank before finalizing the contracts
with the buyers, details of service fee and other charges, if any, payable by the
Indian companies.
indigenous, can be financed, thus obviating the need to arrange finance for
time of disbursement.
Under this program finance equity loan to Indian companies for setting up
& companies from Asian countries through four facilities that address
assistance.
trade.
eligible exporters for financing inputs for export production such as raw
Bank are exempt from Cash Reserve Ratio, Statutory Liquidity Ratio and
(xi) Working Capital Term Loan Programme For Export Oriented Units
(WCTL) :
companies.
(xiv) Long Term Working Capital Programme For Export Oriented Units :
technology/know-how
export proposals vide it's A.D (M.A. Series) Circular No. 9 dated May 5, 2000,
RBI has advised exporters to ensure, in their own interest, that conditions as
laid down in Memorandum PEM for submission of bids are compiled with.
Bank and other banks for post-award facilities at to ensure proper tie-up of
facilities.
• Exporter can directly approach Exim Bank for proposals of value limits
EXIM Bank approves the proposal if the same falls within its delegated powers
final terms and conditions of the contract including various fund based and non-
Bank/Working Group, final approvals for fund based and non-fund based
facilities and requisite exchange control approvals are issued by the concerned
economy. India has a vibrant SME sector that plays an important role in
Dried Flowers
SMEs find the services of reputed national and international consultants as not
cost effective and often, not adequately focused. Recognizing this knowledge
gap, Exim Bank of India has been endeavoring to provide a suite of services to
its SME clients. These include providing business leads, handholding during the
dissemination etc. and financial advisory services such as loan syndication, etc.
services that Exim Bank offers. Broadly, these can be classified into three
categories:
Export Credit:
Exim Bank provides pre shipment and post shipment credit in Indian
rupees and foreign currency. Finance is extended for short term i.e. upto 6
months as also for medium/long term i.e. beyond 6 months for eligible products
and projects. Certain RBI guidelines apply for such medium/long term export
credit.
• Project Finance
• Finance for new projects, expansion, modernization projects.
linkages) :
development, etc.
Exim Bank also provides lending for Research & Development activities
Advisory Services:
forward linkage for agri exports. Exim Bank's international network comprising
overseas office, co-operation partners, correspondent banks and financial
Business Performance
Financial Performance
• Net worth of the Bank increased to Rs. 2512 crores from Rs. 2143
crores.
3. New initiatives
With the advent of globalisation, the barriers to trade are getting dismantled and
the dividing line between national and global markets is slowly disappearing.
products and services, it has also made certain sections in developing countries
more vulnerable to market vagaries. Thus, the objectives of Exim Bank's rural
programme as the core to its operations, as depicted in this diagram. While the
other financing programmes will give Exim Bank the volume and the return
(topline and bottomline), the rural initiatives will enable the Bank to break new
ground in the operations of export credit agencies and leverage its expertise in
if these initiatives prove successful and give desired results, it has the potential to
enhance the purchasing power of the 'bottom of the pyramid' and will have
• The Bank has been focusing on Small and Medium Enterprise (SME)
telecom equipment.
• During the year, eleven corporates were sanctioned funded and non-
funded assistance aggregating Rs. 548 crores for part financing their overseas
• Exim bank has provided finance to 122 ventures set up by over 100
1888 crores.
o acquisition of an auto ancillaries unit in the USA, with both and equity
support.
Agri Business Group
• Sanctions and disbursements of the Agri Business Group during the year
• Bank’s finance to the agri sector during the year included term finance
farming sectors.
basmati rice, wheat, sugar, coffee, maize, cattle feed, groundnut kernels,
• Exim bank has strengthen its linkages with relevant organisation in the
• The bank has been conferred with the 2005 ‘trade development award’.
institutional and trade linkages, its reach, access and credibility to serve
banks overseas offices. The bank had been conferred with this award in
• The ADFIAP Awards Board this year has also bestowed upon the
the world.
Contracts secured
• During the year, the Bank extended sixteen LOCs, aggregating US$ 423
utilization.
programme.
• Bank sanctioned and issue guarantees aggregating Rs. 1589 crores and
• Profit before Tax stood at Rs. 314 crores as compared to Rs. 304 crores
• The profit after Tax amounted to Rs. 258 crores as compared to Rs. 229
• Net wroth of the Bank increased to Rs. 2512 crores from Rs. 2143
crores.
Dividend
• Rs. 65.44 crores will be paid to the Central Government as dividend for
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Name: - Shraddha k. Khandhadia
Roll no: - 4
Services
(Management of Banks)
of management studies