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PROJECT ON

EXPORT IMPORT BANK OF INDIA

(EXIM BANK)

BACHELOR OF COMMERCE-

BANKING & INSURANCE

SEMESTER V

2008-2009

SUBMITTED BY

SHILPA SONAWANE

ROLL NO: 55

PROJECT ON

EXPORT IMPORT BANK OF INDIA
(EXIM BANK)

BACHELOR OF COMMERCE –
BANKING & INSURANCE
SEMESTER V

SUBMITTED
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE OF BACHELOR
OF COMMERCE – BANKING & INSURANCE.

BY
SHILPA SONAWANE
ROLL NO: 55

CERTIFICATE

DECLARATION
I Miss.Sneha Sundrani , student of B.Com – Banking &
Insurance Semester V (2008-2009), hereby declare that I
have completed the Project on Customer Relationship
Management in Banks (Private and Public Sector) in the
academic year 2008.
The information submitted is true and original to the
best of my knowledge.

Sign
ature of Student

…………………
SHILPA SONAWANE

Roll No-55

Mrs. I also thank our reverend principal Dr. It is said that “Gratitude is the hearts . I am especially thankful to my project guide Ms. whose names are too numerous to be mentioned here. guidance and constant motivation which served as a driving force in the successful completion of this project. Indu Shahani for giving me an opportunity to present a creative work in the form of project. my sister and all those people who have lent me a helping hand in finishing this project. I also take this opportunity to express my sincere gratitude to the library staff that has provided me right information and study material at the right time. I would like to thank all the five bank managers who provided me the primary information. Lastly I would like to thank my colleagues. Heena Thakkar for her encouragement. This project would just not have been complete without the valuable contributions from various people whom I have interacted with in the course of its completion. Sapna Malya and our course co-coordinator Mrs. ACKNOWLEDGEMEN T Any accomplishment requires the effort of many people and this work is no different. I would first and foremost thank the Mumbai University for designing such a specialized course. my parents.

the memory of all help and assistance acquired during the course of this project will remain in my heart as gratitude forever………………….memory”. . well.

With effect from the date i. History: This Act extends to the whole of India. a corporation Known as the Export Import Bank of India was established for the purposes of this Act. . commenced operations in March 1982. Exim Bank acts as the apex financial institution relating to financing for foreign trade. as the Central Government by notification. and for functioning as the principal financial institution for co-ordinating the working of financial institutions engaged in financing the export and import of goods and services with a view to promoting the country’s international trade and for matters connected therewith and incidental to. September 1981. It provides financial assistance by way of direct loans and advances for the purpose of export or import. 1981: An act to establish a corporation to be known as the Export-Import Bank of India for providing financial assistance to exporters and importers. appointed. It was set up so as to take over the operations relating to export finance which the IDBI (Industrial Development Bank of India) had been handling since the year 1970. The Export Import Bank of India. ORIGIN AND HISTORY The Export-Import Bank Act.e. commonly known as the EXIM Bank.

” Objective The objective of the bank is- “… for providing financial assistance to exporters and importers. through a diverse range of products and services. .1981. MISSION Exim Banks mission is to facilitate globalization of Indian Business. 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” as Stated In the Export-Import Bank Act. Exim Banks mission statement: “To develop commercially viable relationships with externally oriented companies by supporting their internationalization efforts.rediscounting of usance export bills for banks and finance for international trade activities.

• To forge close working relationships with other export development and financing agencies. OBJECTIVES • To translate national foreign trade policies into concrete action points. aiding him in his efforts to be internationally competitive. • To be responsive to export problems of Indian exporters and pursue policy resolutions. • To initiate and participate in debates on issues central to India’s international trade. multilateral funding agencies and national trade and investment promotion agencies. • To anticipate and absorb new developments in banking. . export financing and information technology. • To provide alternate financing solutions to the Indian exporter. • To develop mutually beneficial relationships with the international financial community.

The authorized capital of the Bank is Rs. It also reflects the aim of value addition to exports. 2000 Crores. 1000 Crores respectively. of which and Rs. The import arrow is thinner than the export arrow. The Bank .The Logo has a two-way significance. Vision & Functions The Exim Bank aims to promote India's international trade. The Organization: Objective. The Organization: Exim Bank is wholly owned by the Government of India. The Logo reflects this. has been fully subscribed by the Central Government.

is an underlying passion for professional excellence. The creative synergy produced by a brain trust composed of individuals with vastly different styles of thinking has helped the Bank to constantly innovate. information technology. and the business community. The bank has a total staff of 214 hailing from backgrounds as diverse as banking. business management. engineering. accountancy. . however.raises additional resources through borrowing from the Government of India. and come up with the original solutions – solutions beyond banking. economics and liberal arts. from the RBI and from the market through the issue of bonds and debentures. THE PEOPLE Exim bank is a virtual melting pot of thriving minds from a variety of disciplines. which has representatives from the Government. a financial institution. What they all have in common. Reserve Bank of India. It borrows foreign currency form other countries as well. Exim bank is managed by a Board of Directors. public sector banks. Export Credit Guarantee Corporation (ECGC) of India.

oriented. The Banks believes that its people are its key resource. As a model corporate citizen. and recognizing professional excellence. CORPORATE PHILOSOPHY Exim banks corporate philosophy is built on two pillars: People orientation and customer focus.the Banks high level of office automation. non-hierarchical work culture and open office plan facilitating a free flow of interaction between and within groups. Therefore. the Banks seeks to develop its human resource by motivating them through challenging assignments. upgrading their skills through training programmes. We follow an office. and a lean and multi-skilled staff enables optimum efficiency and profitability. . the Bank maintains an equal ratio of men and women (1:1) .

C.Our five overseas offices-at Dubai. and • Trade and industry association in India. London. supported by the Indian missions abroad makes it uniquely capable of offering advisory services to Indian companies looking for marketing opportunities. Asian development Bank. and thereby minimize response time and maximize customer equity. Further. The Bank constantly seeks to innovate and improve its products. Singapore and Washington D. buyer information.-have forged strategic institutional linkages for the bank with: • Multilateral agencies such as World Bank. Johannesburg. our overseas . technology suppliers and partners for overseas and domestic joint ventures. through multi disciplinary cross-functional groups ensures that the best possible business solution is offered to the customer. Our interactive mode of analysis and decision-making. processes and delivery mechanisms. The banks extensive global network. Customer-responsiveness is germane to the Banks philosophy. • Export credit agencies. • Trade and investment promotion agencies abroad. GLOBAL NETWORKING Exim bank is quite unique in its global and national network of institutional and professional linkages .

They identify special needs of the export business through close interaction with existing and prospective clients and suggest innovative instruments appropriate to the regions potential. office enables us to garner economic and commercial intelligence on countries. SOURCES OF FUNDS… . companies and projects. inspection of assets charged to the bank and overall monitoring of the performance of the companies are also done at domestic offices. review competitive export practices and provide alerts on new export opportunities. assess credit risks. They also regularly interact with commercial development /government agencies. including site visits. The Nine Domestic Offices of the Bank Helps to respond to regional development activities in the export sector. Detailed appraisals. legal documentation. and strengthen the banks policy mechanism with their critical inputs on market perceptions and the export environment. initial processing of loan disbursement requests. and monitoring of loans.

public sector Banks.  Project finance/trade finance group which handles the entire range of export credit services such as suppliers credit. forfeiting. Export Credit Guarantee Corporation of India. importers.5 billion. pre-shipment credit. The banks functions are segmented into several operating groups including  Corporate banking group which handles a variety of financing programmes for. ORGANISATIONAL SET-UP Exim bank is managed by a Board of Directors. guarantees. . Reserve Bank of India. buyers credit.20 billion.As at March 31.the bank had a paid up capital of Rs 9.2006. They also raise funds from domestic and international markets. academia and business community. and its net worth was rs27. Export Oriented Units (EOUs). With its headquarters in Mumbai. which has high level representatives from the Government. and investment by Indian companies. the bank has nine regional offices overseas. finance for export of projects and consultancy services.

. especially to SMEs.  Small and medium enterprises group has been established to cater to the specific financing requirements of export oriented SMEs. Legal. to import equipment.The group handles credit proposals from SMEs under various leading programmes of the bank. which has been put in place to spearhead the initiative to promote and support Agri –exports. Loan recovery. overseas financial institutions and other entities overseas. goods and services from India. Internal Audit. there are Support Services Groups. Management Information Services. Corporate Finance. to enable buyers in those countries. and serves and an effective market entry tool. Risk Management. Exim banks extends LOCs to sovereign governments. Export services group offers a variety of advisory and value- added information services aimed at trade and investment promotion. Apart from these. The Group handles projects and export transactions in the agricultural sector for financing. Human Resources Management and Corporate Affairs. regional development banks. on deferred credit terms. Lines of credit group.  Agri business group. which include: Research and Planning.lines of credit (LOC) is a financing mechanism that provides a safe mode of non –recourse financing option to Indian exporters. central banks. Information Technology.

. 2) Financing of exports and imports of machinery and equipment on lease basis. not only of India but also of third world countries.Evolving Vision Functions: 1) Financing of exports and imports of goods and services.

consultant and promoter. . and Reserve Bank of India. a source of finance. 3) Financing of joint ventures in foreign countries. Commerce. Government of India Representatives (Ministries of Finance. and 6) Provide technical administrative and financial assistance to parties in connection with export and import. 4) Providing loans to Indian parties to enable them to contribute to the share capital of joint ventures in foreign countries. shares. External Affairs). 5) Undertake limited merchant banking functions such as underwriting of stocks. export credit Guarantee Corporation of India limited and commercial banks that are authorized foreign exchange dealers. bonds or debentures of companies engaged in export or import. The working group comprises Exim bank. COORDINATION ROLE Exim bank is the coordinator of the working group mechanism for clearance of projects and services exports and deferred payment exports (for amounts above a certain value-currently US$ 100 million). THE ROLE… Exim bank plays a four-pronged role with regard to India’s foreign trade: those of a coordinator.

.This inter-institutional Working Group accords clearance to contracts (at the post award stage) sponsored by commercial banks or Exim Bank. On its own Exim bank can now accord clearance to project export proposals up to US $100million in value.window mechanism for clearance of term export proposals. and operates as one.

EXPORT CREDIT. commercial banks and international entities. FOR INDIAN COMPANIES EXECUTING CONTACTS OVERSEAS… . Exim bank offers the following export credit facilities. which can be availed of by Indian companies.

so that they can. Exim banks pre-shipment credit facility. Exim Bank's facility helps them meet these expenses. Indian project exporters incur Rupee expenditure while executing overseas project export contracts i. personnel and equipment etc. FOR PROJECTS EXPORTERS. in turn. extend term credit to overseas importers. • SUPPLIERS CREDIT This facility enables Indian exporters to extend term credit to importers (overseas) of the eligible goods at the post shipment stage.e. in Indian rupees and foreign currencies. For Exporters of Consultancy and Technological Services. . provides access to finance at a manufacturing stage. Exim Bank offers a special credit facility to Indian exporters of consultancy and technology services. costs of mobilization/acquisition of materials. • PRESHIPMENT CREDIT. Indian companies can avail of these to furnish requisite guarantees to facilitate execution and export contracts and import transactions. enabling exporters to purchase raw materials and other inputs. Guarantee facilities.

FINANCE FOR EXPORT ORIENTED UNITS. Forfeiting is a financing mechanism that enables a company to convert credit sale to cash sale.Forfeiting. Exim bank acts as facilitator for the Indian exporter. enabling him to access the services of an overseas forfeiting agency. on “without recourse” basis. TERM FINANCE FOR EXPORTING COMPANIES .

• Funded o Working Capital Term Loans [< 2 years] o Long Term Working Capital [up to 5 years] o Export Bills Discounting o Export Packing Credit o Cash Flow financing. • Pre-shipment Credit . • Import of Equipment Export Finance.Exporting Companies. • Non-funded o Letter of credit limits o Guarantee limits Working Capital Finance For Non. • Bulk Import of Raw Material. • Project Finance • Equipment Finance • Import of Technology & Related Services • Domestic Acquisitions of businesses/companies/brands • Export Product Development/ Research & Development • General corporate finance. WORKING CAPITAL FINANCE FOR EXPORTING COMPANIES. Exporting Companies. Term Finance For Non.

includes new project/ expansion/ acquisition of business/company/ brands/research & development). To part finance project expenditure (Project. inter alias. • Post Shipment Credit • Buyers' Credit • Suppliers' Credit [including deferred payment credit] • Bills Discounting • Export Receivables Financing • Warehousing Finance • Export Lines of Credit (Non-recourse finance) Equity Participation In Indian Exporting Companies. Overseas Investment Finance .

Export Import Bank of India . The internal group set up by the Reserve Bank of India has recently recommended that the units with investment in plant and machinery in excess of SSI limit and upto Rs.Small & Medium Enterprises & Agricultural finance Definition of SMEs in India and World: In India the small and medium enterprises are not well defined. 10 crores may be treated as medium enterprises. volume of output . SMEs have been defined against various criteria such as the number of workers employed. The definitions of ‘small’ and ‘medium’ sized enterprises differ from one country to another. • Finance for Indian Company's equity participation in the overseas Joint Venture (JV)/ Wholly Owned Subsidiary (WOS) • Direct Finance (Term & Working Capital) to the overseas JV / WOS • Finance (for equity/debt component) for acquisition of overseas businesses / companies including leveraged buy-outs including structured financing options. Direct Equity by Exim Bank in the overseas JV/ WOS of an Indian Company.

Thus the definition of SME varies from country to country and from region to region. contribution to national output and exports. The European Union defines SMEs that have employees of less than 250. with a turnover not exceeding Euro 50 million. generating employment and creating new entrepreneurship in India. from 100 to 499 employees as medium and over 500 employees as large enterprises. increasing trade.or sales. Organization for Economic Cooperation and Development (OECD) defines establishments with upto 19 employees as ‘very small’. India has a vibrant SME sector that plays an important role in sustaining economic growth. such as employment generation. Importance of the SME sector: The SSI sector in India employs around 26 million people and is involved with the production of over 7500 industrial items with the product range varying from very . Multilateral Investment Guarantee Agency (MIGA) has recently developed a guarantee programme. The importance of SME sector is well-recognized world over owing to its significant contribution in achieving various socio-economic objectives. between 20 and 99 employees as ‘small. value of assets not exceeding US $ 15 million and annual sales not exceeding US $ 15 million. for coverage under this programme. fostering new entrepreneurship and to provide depth to the industrial base of the economy. many establishments in some developing countries with 100 to 499 employees are regarded as relatively ‘large’ firms. and the use of energy. value of assets employed. called the Small Investment Programme (SIP) that is specifically designed for SMEs. as firms with not more than 300 employees. MIGA defines SMEs. However.

Major sectors contributing to SSI exports include readymade garments (27%). chemicals & pharmaceuticals.simple items produced with traditional technology to high tech products. engineering goods (14. and processed foods (11% each). the SSI sector accounts for over 90% of industrial units in the country. At present. electronics & computers. 40% of value addition in the manufacturing output and approximately 35% of India’s exports.5%). exports have grown double digit in the last 10 years. . Barring few years. SSI sector in India has been exhibiting a striking export performance.

Exim Bank and SMEs:

Indian SMEs require business advisory services to enhance their
international competitiveness in a highly competitive globalising world. The
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 endeavouring to provide a suite
of services to its SME clients. These include providing business leads,
handholding during the process of winning an export contract and thus
assisting the generation of export business on success fee basis, countries/
sector information dissemination, capacity building in niche areas such as
quality, safety, export marketing, etc. and financial advisory services such as
loan syndication, etc.

In the past, Exim Bank has implemented a number of innovative programmes
focusing primarily on SMEs. The Bank, in the past, has operated an Agency Line
of Credit for IFC and an Export Marketing Programme for the World Bank, which
are targeted towards SME sector. The Bank proactively assists SME units in
establishing their products in international markets. Exim Bank’s Lines of Credit
help SMEs to offer competitive credit term to the buyers and to explore newer
geographical markets. Recently, the Bank has signed a Memorandum of
Cooperation with the International Trade Centre (ITC), Geneva, to implement the
Enterprise Management Development Services (EMDS) programme, for

supporting SMEs in their globalisation efforts. This initiative is being launched by
ITC for the first time in any country.

AGRI FINANCE

The globalization and post-WTO scenario offers considerable scope for exports
of Indian agricultural products. 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, guarantees etc. Term loans
with varying maturities are provided for setting up processing facilities, expansion,
modernization, purchase of equipment, import of equipment/technology, financing
overseas joint ventures and acquisitions etc.

The Bank has strong linkages with other stakeholders in Agri sector such as
Ministry of Food Processing Industries, GoI, NABARD, APEDA, Small Farmers'
Agri-Business Consortium (SFAC), and National Horticultural Board etc. Apart
from financing, the Bank also provides a range of advisory services to Agri
exporters. Term loans with varying maturities are provided for setting up
processing facilities, expansion, modernization, purchase of equipment,
import of equipment/technology, financing overseas joint ventures and
acquisitions etc. The Bank has strong linkages with other stakeholders in Agri
sector such as Ministry of Food Processing Industries, Government of India,
NABARD, APEDA, Small Farmers' Agri-Business Consortium (SFAC), and
National Horticultural Board etc. Apart from financing, the Bank also
provides a range of advisory services to Agri-exporters. The Bank also
publishes a number of Occasional Papers, Working Papers on export potential
of various sub-sectors in agriculture and a bi-monthly publication in different
languages on global scenario in agri-business and opportunities therein.

Initiatives by Exim Bank for both Small and Medium Enterprises & Agri
finance:

• Exim Bank has signed a Memorandum of Cooperation with DHAN
Foundation, Madurai (a leading NGO covering 3 lakh families in 4
states) for advisory and financial support for export related activities
for their grass root enterprises
• Set up units to produce value-added products from organic tamarind
grown in the area
• Steps are on to set up an export oriented coco-peat projects
• To market products made out of palm leaves and handmade papers in
Europe through our overseas offices.

1) To devise marketing strategy for marketing local handicrafts to foreign
tourists through 5 star hotels.

2) Exim Bank has signed Memorandum Of Cooperation with BASIX,
Hyderabad. BASIX promotes development for the rural poor and
women, mainly through Micro-credit and Micro Finance. Highlights of
MoC:-
a) joint consultancy studies,
b) productivity enhancement,
c) market linkages, capacity building,
d) entrepreneurship development,
e) commercialization of India's rural sector in overseas market

f) technical assistance to micro and small-enterprises in the farm and non- farm sectors in other developing countries. . Kerala) to provide larger visibility to bamboo-based handicraft products. Dausa and Pottery Cluster in Basawa. of Rajasthan and UNDP is engaged in discussions for developing export clusters in Rajasthan including Stone Carving and Dari Cluster in Lawan. b) Exim Bank’s Dubai ( formerly Budapest ) office helped in exporting sandstone slabs to Hungary 5) Exim Bank has signed a Memorandum of Cooperation with Uravu (an NGO involved in employment generation programs in the bamboo sector for tribal & poor families in Waynad. organizing workshops and training programs for skill upgradation of rural artisans. Highlights of MoC:- a) Facilitate promotion of Uravu's or its associates' products in overseas market. Andhra Pradesh 4) BASIX in association with Govt. 3) Exim Bank along with BASIX to organise skill upgradation workshop for handloom weavers in Mahabubnagar Mandal & for tussar silk weavers in Kosgi. a) Exim Bank is engaged in helping the clusters in product development and establishing export market linkages.

Recent Developments : . Govt. trade. of West Bengal participated in the discussions at Exim’s office in Kolkata 8) One suggestion under discussion is to form a marketing company with equity participation by the weavers co-op. b) Identification of suitable buyers / partners by Exim Bank for facilitating export business of Uravu and its associates. d) Conducting joint studies and research in areas of mutual interest 6) Exim Bank has initiated discussion with handloom weavers cooperative societies in Fulia (West Bengal) for marketing their products overseas 7) National Institute of Fashion Design. business and investing opportunities to facilitate increased co-operation for commercial exploitation in overseas markets. Handloom & Handicraft Export Promotion Council and Directorate of Handloom.S. c) Exchange of information on international markets for various products. West Bengal Govt. Kolkata 10) Exim Bank is also associated with rural knowledge centre of M. and Exim Bank which will take up marketing of the products 9) Feasibility report under preparation by Indian Institute of Social Welfare & Business Management. Swaminathan Research Foundation for providing technology inputs to rural areas. technology.

It is envisaged that the learning from this programme would be transferred to other developing countries. Geneva. and thus assist in capacity creation and institution building in the global arena. The objective of the programme is to undertake capacity development initiative that promotes economic development (increased employment. Innovative Programme for SMEs The Bank has entered into a cooperation arrangement with International Trade Centre (ITC).EXIM’s focus on SMEs Special Line of Credit from ADB: The Bank is negotiating a long term Line of Credit of US$ 250 mn. for extending loans to SMEs . The Bank will have an option to draw the funds in different currencies. as per the needs of its customers. trade and economic activity) in Commonwealth member states by providing . This is a pioneering initiative for supporting SMEs and for providing term loans and export finance facilities to the identified units to help them in their globalisation efforts. The Bank thus supports small enterprises through capacity building and assistance in formulation of viable proposals. investment. without Central Government guarantee. From the Asian Development Bank. for implementing a unique Enterprise Management Development Services (EMDS) program. The Bank has partnered ITC in implementing this project. which is an IT based solution provider to enable small enterprises to prepare business plans with international market in focus. The Bank has partnered the Commonwealth Secretariat in the Commonwealth – India Small Business Competitiveness Development Programme.

which have assisted projects that have created a development impact in their respective countries. Awardsare given to member institutions. The Award is in recognition of the Bank’s “Enterprises Management Development Services (EMDS)” programme. an IT based solution provider to enable small enterprises to prepare business plans with international market in focus Debt restructuring scheme for small and medium enterprises Publications • Export Performance of Small and Medium Enterprises in India in research brief. . and to build and develop institutional capacity.competitive strategies and policies on SME development to practitioners and policy makers. which have implemented or enhanced outstanding and innovative development projects during the year. ADFIAP Development Award The Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) Development Award recognises and honours ADFIAP member institutions. The Bank has been conferred the 2008 “SME Development Award”.

.15 crores for film production . • Occasional Paper: Institutional Support to SMEs A Study of Trade and Investment Potential • Occasional Paper: Institutional Support Systems for SMEs in India and International Experiences FILM FINANCE The bank has till date-sanctioned loans more than Rs 33.the first three films financed by Exim bank has been commercially successful across India and overseas market.

• Honeymoon Travels Pvt. Ltd. • Kabul Express • Dhoom -2 • Don .The Chase Begins Again • Fanaa • Bunty Aur Babli • Salaam Namaste • Veer Zaara .FILMS FINANCED BY EXIM BANK.

. which can be availed of by Indian companies. EXPORT CREDITS Exim bank offers the following Export Credit facilities. commercial banks and overseas entities. enabling them to rediscount export bills of their SSI customers. FOR COMMERCIAL BANKS: Exim bank offers Rediscounting facility to commercial banks. with usance not exceeding 90 days.

aimed at helping them meet cash flow deficits. for import of eligible goods from India on deferred payment terms.We also offer Refinance of Suppliers Credit. who in turn extend them credit over 180 days to importers overseas. to enable buyers in those countries. FOR OVERSEAS ENTITIES Buyer’s credit: Overseas buyers can avail of Buyers Credit from Exim bank. sovereign governments and other entities overseas. enabling commercial banks to offer credit to Indian exporters of eligible goods. can avail of credit under our finance for deemed exports facility. regional development banks. but which are financed by multilateral finance agencies. OTHER FACILITIES FOR INDIAN COMPANIES: Indian companies executing contracts within India. Line Of Credit Introduction Exim Bank extends Lines of Credit (LOCs) to overseas financial institutions. to import goods and services from India on .

which states that the contract is covered under Exim . as well as. against negotiation of shipping documents. approves the contract and refers to Exim Bank for concurrence for inclusion of contract for being financed under the LOC. 2. 5. available amount under the LOC and quantum of service fee payable to Exim Bank. Exim Bank conveys contract approval to the exporter and the Borrower. The Indian exporters can obtain payment of eligible value from Exim Bank. Exim Bank accords approval to the contract.deferred credit terms. Borrower appraises the proposal. 6. on its own. Exporter checks with Exim Bank. 4. if any. and serves as an effective market entry tool. Exim Bank signs LOC Agreement with overseas Borrower Institution (Borrower) and announces the availability of LOC for utilization. How does it work? 1. at the behest of Government of India. when the Agreement becomes effective. if in conformity with the terms of LOC. Exim Bank extends LOCs. and negotiates contract with Importer. If satisfied. 3. especially to SMEs. LOC is a financing mechanism that provides a safe mode of non- recourse financing option to Indian exporters. The Importer arranges remittance of advance payment to the Exporter and also opening of a Letter of Credit. Importer approaches the Borrower for approval of the contract. without recourse to them.

Exim Bank reimburses the Negotiating Bank. Borrower repays Exim Bank on due dates. Exporter executes the contract/ships the goods/provides services. upon compliance with stipulated conditions therein. on receipt of valid claim and service fee. 7. Exim Bank/commercial bank in India. 9. as applicable. Procedural flow chart .Bank's LOC to the Borrower and reimbursement will be by Exim Bank for the Eligible Value of Credit. 8. designated as the Negotiating Bank negotiates shipping documents and pays the exporter. 10. by debit to the LOC account of the Borrower.

The Indian exporter does not carry any credit risk either on the importer or the importer's country. without recourse to them. against negotiation of shipping documents. Thus. the Indian exporters can obtain payment of eligible value from Exim Bank. LOC is a safe mode of non-recourse financing option to the Indian exporter and serves as a .Benefits to the Indian Exporter: Under Exim Bank's LOCs. whilst the overseas importer enjoys deferred credit facility.

industrial manufactures. the risk perception of the importer and the interest rate structure prevalent in the country. market entry tool for India's exports. As the LOC is extended by Exim Bank on internationally competitive terms. which need deferred credit for buying Indian machinery. plant and machinery. Credit period allowed under the LOC Eligible Goods: Capital goods. the overseas importer of Indian goods is allowed access to the credit facility at competitive interest rates. for approval of his proposal for import of Indian goods on deferred credit terms. tenor of credit. security offered by the importer. where required. the currency of credit. The Indian exporter can also increase his export volumes by offering deferred credit. It may however be mentioned that Exim Bank's . will depend on various factors such as the cost of fund. The interest rate that the importer will need to pay to the recipient of Exim Bank's LOC. Benefits to Overseas Importer of goods and services: Exim Bank has been using the LOC mechanism for promoting India's exports to the traditional as well as new markets in developing countries. Interest rate the overseas importer of Indian goods has to pay The overseas importer of Indian goods has to approach the overseas borrower financial institution/recipient of Exim Bank's LOC. The overseas importer and the Indian exporter do not have to negotiate credit terms separately as the credit arrangement between Exim Bank and the overseas borrower financial institution is already in place. goods and services. consumer durables and any other items eligible for being exported under the 'Exim Policy' of the Government of India.

the importer would normally have to pay interest rate lower than what he would otherwise pay to his Bank on similar credits. export of capital goods and plant and machinery is allowed on credit terms of upto 5 years. the minimum value of contract could be different. whereas the export of industrial manufactures. Exporters would be well advised to check the particulars of the individual LOC with Exim Bank. The exporter should check in advance with Exim Bank the quantum/percentage of service fee payable.interest rates on LOCs being competitive. at the behest of Government of India. under certain LOCs. Minimum value of contract for being eligible for coverage under the LOC Most of the LOCs stipulate a minimum contract value as US$ 50000. In respect of LOCs extended by Exim Bank. However. Charges payable by the Indian exporter to Exim Bank In respect of certain LOCs. In respect of LOCs . the Indian exporter has to pay a service fee to Exim Bank. Exporters are advised to check the details with Exim Bank. However. There are certain short-term LOCs which provide for credit period of 1 year. and there are certain LOCs which permit credit period beyond 5 years. consumer durables. raw materials and commodities is allowed on credit terms of upto 2 years. Generally. the credit period allowed under each LOC could be different. no service fee is normally payable by the exporter to Exim Bank. in advance.

The stage at which the Indian exporter should contact Exim Bank The Indian exporter should contact Exim Bank before finalizing the price negotiation with his prospective importer. he does not have to obtain any ECGC cover. ECGC cover As the LOC is a non-recourse financing option to the Indian exporter. . at the behest of Government of India. the payment procedure involved and the contact person/department in the overseas borrower institution/recipient of LOC.extended by Exim Bank. if the transaction is intended to be covered under Exim Bank's LOC. The exporter should ascertain details such as the service fee payable to Exim Bank. the credit period permissible under the LOC. based on their levels of incomes and external debt. at the behest of Government of India. In respect of certain LOCs especially those extended by Exim Bank. sectors/projects could be pre-identified. credit period ranges from 8 years to 20 years depending on the caegories of countries.

Exim Bank Of India And Lao Pdr Ink Credit Agreement . Exim Bank is a non-regional shareholder of Afreximbank which represents 38 member-states across Africa. Chairman and Managing Director of Exim Bank and Jean- Louis Ekra. T C Venkat Subramanian. The Line of Credit affords a risk free. The agreement was signed by Mr.2008: Exim Bank of India has signed an agreement with the African Export-Import Bank or Afreximbank for a Line of Credit to the tune of $30 million to be provided for financing India’s exports to Africa. President of Afreximbank.Recent Developments And News Highlights : Exim bank signs agreement with African counterpart New Delhi. non-recourse export financing option to Indian exporters. This agreement will facilitate and boost India’s exports to member states of Afreximbank. The agreement was signed at the 4th CII-Exim Bank conclave on India-Africa Project Partnership 2008 in New Delhi on. March 20.

Exim Bank's LOCs afford a risk-free. This Facility. S. Europe and the CIS. by Mr.32 bn. Minister of Finance. 2008. Executive Director. Manmohan Singh. and the President of Lao PDR. Besides promoting India's exports. is the first ever Line of Credit by Exim Bank to Lao PDR.5 MW Hydropower project and equipment for Rural Electrification Phase 2 project in Lao PDR. The LOC will be utilised to finance the Paksong S/S-Jiangxai 115 kV double circuit Transmission Line project. Exim Bank will reimburse 100% of contract value the Indian exporter. The LOC Agreement was signed in New Delhi.Export-Import Bank of India (Exim Bank) and the Government of Lao People's Democratic Republic have signed a Line of Credit (LOC) Agreement for US$ 33 mn during the State Visit of the President of Lao PDR to India. H. Rao. upfront upon the shipment of goods. with credit commitments amounting to US$ 3. in the presence of Hon'ble Prime Minister of India. non-recourse export financing option to Indian exporters. on behalf of Exim Bank of India. available for utilization for financing exports from India. Mr. . Somdy Douangdy. Nam Song 7. Asia. Latin America. Dr. Exim Bank has now in place 101 Lines of Credit. on behalf of Lao PDR. covering over 90 countries in Africa. August 27. Mr.R. and H. With the signing of this LOC Agreement. Exim Bank's LOCs enable demonstration of Indian expertise and project execution capabilities in emerging markets. on Wednesday.E. Under the LOC.E. Choummaly Sayasone. extended at the behest of Government of India.

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The bank also . or annual export sales of Rs 5 crores. PROJECT FINANCE For setting up of EOUs: Exim bank offers term loans for setting up of new projects. and acquisition of assets for modernization/upgradation/exansion of existing units. an export oriented company is defined as any company with a minimum export orientation of 10% of net sales.FINANCE FOR EXPORT ORIENTED UNITS (EOUs) For the purpose of our financing. whichever is lower.

These include project/equipment finance. the bank also facilitates setting up of software technology parks (STPs). and overseas investment finance. For textile and jute industries: The bank also extends finance to eligible units in textile and jute industries under The Technology Up gradation Fund Scheme. Further. for term loan sanctioned by the lending bank to an EOU. to enable them to upgrade their manufacturing facilities. besides support for obtaining product/process certification.extends 100% refinance to commercial banks. To address the perceived constraint in the availability of trained software professionals. For Indian companies involved in port development and related activities: . Exim Bank extends term loans to software exporters for establishment/expansion of software training institutes. working capital finance. For software industry: The bank offers a comprehensive financing /services package for the software industry. export marketing and export product development.

for development of new technology to satisfy domestic and international environment and standards.Exim Bank extends term loans to Indian companies involved in construction of ports/jetties. Finance for service sector: Services sectors financed by Exim Bank include entertainment. and to help them develop and/or commercialize new product/process applications. and for acquisition of fixed assets for stevedoring. OTHER FACILITIES Finance for R & D and Export Product Development: Exim bank offers term loans to EOUs. cargo handling.and up to 5 years tenor) to eligible EOUs. hospitality and shipping. Exim Bank has entered into the business of film financing on a very selective basis to cover. 1-2years. WORKING CAPITAL FINANCE. inter alia. film production and finance for distribution in overseas markets. Exim Bank provides term loans (of 1year. storage and related activities like dry docks and ship breaking. The banks approach towards film . health care. to help them meet their working capital requirements.

particularly in developed countries. Underwriting: Exim bank extends underwriting commitment to Indian exporters.financing is to focus on films produced specifically for international audiences and/or film projects. which have foreign exchange earning potential. finance will be available to Indian companies for acquisitions of such rights either on its own or in joint venture with an overseas partner. Exim. subject to a reasonable proportion of the resources being destined for India. . Natural resources: Exim bank selectively provides term loans to Indian companies in their endeavor to acquire overseas natural resources in terms of acquiring mining/exploration rights in overseas locations. to aid them in their efforts to penetrate and retain their presence in overseas markets. Export Marketing Finance: Exim bank offers term loans to Indian companies. The banks film finance is targeted to select production and distribution houses with proven track record. to help them raise finance from capital markets through public/rights issues of equity shares /debentures.

. FINANCE FOR VENTURE OVERSEAS. b) deferred payment guarantees.These include: a) export obligation guarantees.Import loans: Exim bank finances bulk imports of consumable inputs and canalized items undertaken by manufacturing companies. c) guarantees in favor of commercial banks/lending institutions abroad on behalf of Indian exporters. Guarantee facility: Exim bank issues different kinds of guarantees for EOUs.

loans. guarantees and advisory services to support Indian outward investment. Exim Bank also undertakes Direct Equity Stake in Indian Ventures Abroad. to enable Indian companies to supplement their equity with Exim Banks equity contribution. Besides. .The bank has a comprehensive programme in terms of equity finance. both for equity investment in their ventures overseas as well as for on lending purposes. Exim bank offers term loans to Indian companies.

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Services offered include: • Identification of business opportunities in funded projects. • Details on specific project of interest. advisory. policies and practices of multilateral agencies. with regard to bid evaluation. Asian Development Bank. exploit export opportunities and improve competitiveness.EXPORT SERVICES Exim bank offers a diverse range of information. • Information on procurement guidelines. review of bid documents. Profile etc. Capability. • Advice on preparation of Expression of Interest. European Bank for Reconstruction and Development. For Multilateral Agencies Funded Projects Overseas (MFPO): Exim bank offers value added information and support services to Indian companies seeking business in business funded by multilateral agencies such as World Bank. • Advice on bids. which enable exporters to evaluate international risks. African Development Bank. etc. and other official Development Agencies like the Japan Bank for International Cooperation. . and support services.

. trade finance alternatives. in areas such as establishing market potentials. and specifying distribution channels.Apart from these we also offer support services. currency and credit risks involved. along with the export opportunities in the country concerned. defining marketing arrangements. assistance in prequalification etc. Commercial services: Exim bank undertakes customized research on behalf of interested companies. such as liaising with Indian missions. political. which assess the economic. We also assist companies in developing export market entry plans. Country profiles: Exim bank also undertakes country profiles. monitoring bid performance. obtaining quality certifications and display of their products in our overseas offices. Financial counseling: Exim bank offer advice on how to access foreign currency finance from multilateral institutions and import lines of credit.

and facilitate tying-up finance for equity and working capital. through its network of alliances and its overseas offices. . which it publishes in the form of Occasional Papers and Working Papers. as well on the credit worthiness of business entities and banks. Information access: Exim bank issues business opportunities alerts. often on sector-specific issues. are conducted buy international experts from trade promotion organizations and multinational companies. It also advice companies on regulatory clearances. and in consummation of domestic and overseas joint ventures. Ahmedabad and Pune organize training programmes. The bank also carries out research on issues related to international trade. partners. which communicate business leads. industry trends as well as collaboration opportunities.collection/payment systems. acquisition opportunities. These programmes. Building export capability: Our Eximius Learning Centers in Banglore. Internationalization support: Exim bank helps in identifying technology suppliers. economics and sector/product/country studies. workshop and seminars for exporters.

Hindi and 10 regional languages.The bank disseminates information on export opportunities and highlights development that has a bearing on Indian exports. The bank also brings out a bi-monthly publication titled “Agri Export Advantage” in English. Eximius: Export Advantage. country scan. International merchant banking services: Exim bank provides advisory services to Indian exporters to enable them to offer competitive financial packages when they bid for exports. The bank supports three quarterly publications viz ‘Indo –African business”. Besides. LAC CIS regions. which gives update on the trade/investment climate in various countries. “Indo-LAC business” and “Indo-CIS Business”. . this publication also carries a regular feature. Exim Banks commitment to promoting and supporting trade with the African. through its quarterly bulletin.

with countries endeavoring to set up institutional infrastructure for international trade. Our activities in this regard includes: . EXIM BANK AS AN INTERNATIONAL CONSULTANT. Exim bank shares its expertise in the creation and operation of a financial institution in a developing country.

for “projecting Mauritius as an investment hub for Indian firms. • Designing and operational sing of export financing programmes in turkey and South Africa. . undertaken on the behalf of the government of Mauritius. • Setting up the Afriexim Bank. • Inputs regarding export marketing/export development for Armenia. Exim Bank in Malaysia.• Feasibility study for establishment of an export credit and guarantee facility for Gulf Co-operation Council (GCC) countries. Vietnam and Ukraine. • Feasibility study. and the export credit guarantee company in Zimbabwe.

JOINT VENTURES Global procurement consultants limited (GPCL) is a successful consultancy company. promoted by Exim bank in 1996.in partnership with leading private and public sector consultancy firms in India. GPCL provides procurement related .

services particularly related to multilateral agencies such as World Bank. The focus of GTF’S activities is on market driven export-financing solutions for small and medium sized Indian firms. FIM bank. . Malta. Global trade finance limited (GTF). Washington and bank of Maharashtra commenced its business in September 2001. and international finance corporation. Asian development bank and African development bank. a joint venture which had its shareholders. Exim bank.GTF offers factoring for export and domestic receivables with credit protection.

countries. These include your. .PROMOTIONAL PROGRAMMES Promotional activities: Exim Bank conducts Research Studies on products. macro economic issues relevant to international trade and investment. sectors.

Indo – Latin America Business. Its Eximius: Export advantage publication also carries a regular feature. Organic Products. which gives updates on the trade/investment climate in various countries. Eximius: export advantage. Latin America and CIS regions. The Bank supports three quarterly publications viz. Medicinal Plants. Steel. Jute.An Analysis. Floriculture. Sri Lanka. Business Practices of Successful Indian Exporters The Bank disseminates on export opportunities and highlights developments that have a bearing on Indian exports. b) Bilateral trade and investment studies: Kazakhstan. Chemical and Pharma. Country Scan.CIS business. Indo-Africa Business. Award for Business Excellence:- .Trade Potential. The bank supports three quarterly publications viz. Israel. through its quarterly bulletin. Machine Tools. a) Sector studies assessing export potential: the sectors covered are Computer Software. Support with these magazines demonstrates Exim Bank’s commitment to promoting and supporting the trade with Africa. Sports Goods. The Bank also brings out a bi-monthly publication titled Agri-Export Advantage in English. Kyrgyz Republic. Hindi and 10 regional languages. and Indo. Uzbekistan. Australia & New Zealand -Trade & Investment Potential c) International trade related studies: Transaction Costs of Indian Exports.

The objective is to promote research in International Economics. 2008 :- In commemoration of Jawaharlal Nehru Birth Centenary (1889-1989) THE AWARD Export-Import Bank of India has instituted an Annual Award for research in International Economics. The high performance standards set down in order to qualify for the Award serve to foster strong commitments to the TQM in the company’s journey towards Business Excellence. presents as Annual Award for Business excellence for the best TQM practices adopted by an Indian company. The Award was initiated in commemoration of Jawaharlal Nehru Birth Centenary (1889- 1989). Trade & Development and Related Financing. EXIM BANK INTERNATIONAL ECONOMIC DEVELOPMENT RESEARCH ANNUAL (IEDRA) AWARD. in association with the Confederation of Indian Industry (CII). Trade & Development and Related Financing by Indian nationals at universities and academic institutions in India and abroad.Exim Bank. Trade & Development and Related Financing (either awarded a Doctorate or accepted . The Award will consist of a sum of Indian Rupees One Hundred Thousand and a Citation. THE ENTRY Research work by Indian nationals in International Economics.

and the Mekong Delta region. and in the latter case must be accompanied by a version in English. Washington. as entry. 2004 and September 30. Indian consultants can avail of its support for undertaking specific assignment in select countries. Thesis can be submitted either in English or Hindi. thesis by which doctorate has been obtained/ accepted for award of Doctorate between January 1. As a result of this arrangement. China. .for award of Doctorate) from a university or equivalent academic institution in India or abroad is a prerequisite for eligibility of Award. South Asia. Exim Bank is a participant in the trust funds set up by the IFC in different parts of the world. Eastern Europe. Support to Indian Consultants for undertaking services abroad:- Under an agreement with the International Finance Corporation (IFC). 2008. Exim Bank will accept. CIS countries. The Award will be made to a person eligible to receive an award in Indian Rupees. including Africa.

Minimum size of each deposit is Rs.000/-. 10. Applicable rates .RUPEE RESOURCES OF EXIM BANK ● Term Deposits: Issued for tenors 1 to 5 years.

On the deposits for different tenors is published from time to time. and non- resident Indians (NRIs) ● Commercial Papers (CPs) Issued at a discount to the face-value at mutually agreed rates. companies. other corporate bodies registered or incorporated in India . ● Certificates of Deposit (CD) Issued for tenors 1-3 years at mutually agreed rates in multiples of Rs 1 lakh with minimum amount of a CD from a single subscriber at Rs. for maturities of 15 days .one year in denomination of Rs. trusts. corporations. 1 lakh. associations etc. Eligible investors Include individuals. banking companies. Eligible investors include individuals (other than minors). The deposits are non-transferable. An incentive in the form of a higher rate is available to senior citizens. ● Term Money: Bank can borrow term money for 3-6 months from scheduled commercial banks and cooperative Banks at mutually agreed rates. 5 lakh (face-value) or multiples thereof. funds.

ICRA and Fitch.And unincorporated bodies. Distributors with proven track record can empanel with the Bank for arrangement of term deposits. Non.Resident Indians (NRIs) and Foreign Institutional Investors (FIIs) (investment By FIIs would be within the limit set for their investments by the Securities and Exchange Board of India (SEBI)). In respect of bonds having call / put or both options. the same would not be exercisable before the expiry of one year from the date of issue of bonds. ● Bonds Issued for a minimum maturity of 3 years. All the above instruments currently enjoy the highest safety rating from CRISIL. The coupon on the bond may be fixed or floating (linked to a mutually acceptable 'reference rate'). .

Summary The Exim Bank Letter of Credit policy can reduce a bank’s risks on confirmations and negotiations of irrevocable letters of credit issued by overseas financial institutions for the financing of U. exports. to make payment or reimbursement to the insured bank on an irrevocable letter of credit. . whether sovereign or private.S. This policy affords commercial and political coverage against the failure of an overseas financial institution (issuing bank).

S. Documented interest is covered up to 180 days after the date of the issuing bank's default (or fewer days when the . Coverage applies to irrevocable letter of credit sales for goods produced in and shipped from the United States during the policy period. fertilizer and capital equipment may be insured on terms up to 360 days. Receivables for products. which are less than 50% U. red clause or conditional letters of credit. agricultural commodities. On a case-by-case basis. content. are not eligible for cover.S. publication number 500 of the International Chamber of Commerce where the insured has a relationship with the foreign issuing bank. and for services Performed by U. or in a host country. Terms up to 180 days from the date of first presentation of documents may be extended for consumer goods.Coverage is also provided for the insured bank's refinancing of payments under a sight irrevocable letter of credit of the issuing bank. What is covered? The policy applies to irrevocable letters of credit which conform with the Uniform Customs and Practice for Documentary Credits (UCP). 1993 revision. back-to-back. and certain defense products.S. The policy is not applicable to revocable. spare parts and raw materials. Principal amounts are covered up to the maximum insured percentages stated below or as specified in the policy declarations. personnel either in the U. excluding mark-up.

PERCENTAGES OF COVER .5% or the rate stated in the credit agreement." The policy specifically excludes coverage for those transactions in which there is an unresolved documentary dispute between the insured and the issuing bank. form EIB92-34. Exim Bank uses the prime rate published in the Wall Street Journal. the insured interest rate is generally prime rate minus 0.claim is settled earlier). whichever is less. coverage is specifically excluded in situations in which the issuing bank refuses documents at the time of presentation and seeks a refund from the insured bank to which a reimbursement has already been made. accepting. Additionally. dollars. is required. An application. under the table "Money Rates. ELIGIBLE INSURED BANKS The policy may be issued to any bank doing business in the United States in accordance with applicable federal or state banking laws and regulations. On letters of credit that are payable in U.S. or negotiating bank for the insured transaction. The insured bank must act under the terms of the UCP as the paying.

Once issued. or political only coverage is available at the following maximum percentages HOW THE POLICY WORKS The policy affords coverage for eligible issuing banks in 2 ways: 1) As determined by Ex-Im Bank based on the insured's submission of an issuing bank credit limit (IBCL) application. the IBCL becomes a revolving credit approval limited only to the approved issuing bank with specified terms and tenor. Equalized coverage for commercial and political risks (comprehensive cover). which generally remains valid for a maximum period of 12 months. for Letter of Credit Transactions that may be consulted to determine the likelihood of approval of the confirming bank and the issuing bank. and commercial losses caused by events such as insolvency of the foreign issuing bank. for the overseas financial institution and issuance by Ex-I Bank of a written credit approval in form of a policy endorsement. Exim Bank has published its Short-Term Credit Standards (EIB99-09) . form EIB92-36.Buyers. High credits may be extended up to the amount specified in the IBCL. cancellation of import or export licenses. .The Bank Letter of Credit policy provides coverage against losses caused by events such as war. The application requires disclosure of all relevant financial information on the issuing bank. and foreign exchange inconvertibility. revolution. expropriation or confiscation by a governmental authority. and failure to reimburse or to pay for other reasons.

forms EIB92-37. such as a short-term debt rating or minimum net worth and profitability. . Alternately. a Beneficiary Certificate. when different from the country of the issuing bank’s head office. is required. Under the DCL. add. it must specifically apply for that cover (see IBCL above). among other things. or amend any policy condition. The insured bank is required to obtain an Exporter Certificate. the insured bank may evidence satisfactory experience with the issuing bank. that a letter of credit has been established in support of the described transaction and that the goods are manufactured or produced in and shipped from the United States. political risks coverage is provided against those of the country of the issuing bank’s head office. form EIB94-07. If the beneficiary of the letter of credit is an entity other than the exporter. credit limit or other limitation. If the insured bank wants coverage against the political risks of the country of the issuing bank. delete. certifying. The DCL requires the insured bank to have specified documentation of the issuing bank’s creditworthiness.2) By use of a Discretionary Credit Limit (DCL) given to the insured bank. PRE-PRESENTATION AGREEMENT Prior to the presentation of documents on the insured bank under a letter of credit and at the time an insured bank commits to finance or pay. the insured may obtain a pre-presentation agreement under which Ex-Im Bank agrees not to withdraw coverage. including the country limitation schedule for a period of up to 90 days.

Prior to claim submission. To exercise reasonable care to minimize or prevent loss. the insured is required. WHAT THE INSURED AGREES TO DO The insured agrees: • To submit reports to Ex-Im Bank. listing appropriate bank commitments and insured transactions. • To make written demands for payment on the foreign issuing bank within 30 days after default. • To obtain Ex-Im bank’s prior written approval for rescheduling or accelerating any insured transaction.The policy also sets forth a method by which this optional agreement may be used and extended for additional time under the Discretionary Credit Limit. to make written demand for payment on the issuing bank. form EIB92-27. from the foreign issuing bank. • To report all amounts past due (insured and uninsured). • To maintain evidence of the documents or experience used to exercise a Discretionary Credit Limit CLAIMS AND PAYMENTS • Claims may be filed no earlier than 60 days and no later than 120 days after the date of default. within 30 days of default. The insured is required to file a release and assignment form with Ex-Im . with payment of the corresponding premiums (which will vary from month to month with the level of activity). • Not to enter into an insured transaction with an issuing bank that is 30 days or more past due. form EIB92-30.

working capital finance. advances. but at every step was a higher learning & a better understanding of why the Export Import Bank of India is well established in the minds of many. With the advent of globalization. the Bank has been able to achieve international recognition & today it can be truly called a catalyst for India’s international trade. project finance and not to mention its Lines of Credits facility. consultancy. While working on this project I came to realize that the essence of Exim Bank lies with its ability to recognize the changing global scenario and move ahead with the world. Bank. • Ex-Im Bank will pay claims within 60 days of receiving a satisfactorily completed and documented proof of loss. rediscounting facilities. today. Towards facilitating . so that recovery may be attempted. transferring any rights to the defaulted receivables and any security when the claim is paid. THE LAST WORDS The journey. the barriers to trade are getting dismantled & the dividing lines between national & global markets are slowly disappearing. long with many hurdles along the way. by extending financial assistance to different countries in the form of loans. form EIB92-39. Because of its range of differentiated and tailor-made products and services.

Exim bank of India has grown exceptionally well in all those years and catered to the needs of all those thousands and millions of people in their export and import regulations. Throughout the entire project we have referred to all the various functions and duties that Exim bank has undertaken in all these years. This project has mainly put light on Exim bank of India. EXECUTIVE SUMMARY . which has been seen through its involvement in creating export capability in small & medium enterprises. It has been graded A+ + + by CRISIL. the purchasing power at the bottom of the pyramid can increase thus leading to a gradual effect in all other sectors and thus the overall development of the economy which was ultimately the aim of the Bank at the time of its incorporation and still is. support. Exim Bank recognizes that the these sectors have great potential & with the right assistance. grassroots business enterprises & agro industries. Lastly we can say that it is not just a bank. It is now India’s one of the largest financial institution and is acclaimed worldwide for all the functions it carries out. Exim bank has played the major role in fulfilling that expectation. investment & expertise.it has taken various functions apart from export and import duties. but an enormous financial institution. which is leaving no stone unturned in making its mark globally.inclusive globalization is the banks new initiative. It is the backbone of Indians foreign trade and today that India’s foreign trade is touching heights.

duties and regulations relating to the export and import of all the various goods and services. but it has grown over the years and as the time passed it now stands as a large financial institution which has adopted all the basic requirements and has gained enormous fame and has made a mark in the entire globe. Today India has emerged as a developing country and has faced many challenges and hurdles and has successfully overcome the tag of underdeveloped to developing and is soon going to be felicitated with the tag of developing country. Exim bank is a sole government organization authorized to carry on all the functions.with the objective of promoting India’s international trade and to function as the principal financial institution for co-coordinating the working of institutions engaged in financing imports and exports of goods and service. Established in 1982. With large infrastructure of various projects lined up and the industrial sector which has attained a boom in the recent past has led India to climb another milestone and Exim bank is one of the tools to develop India’s foreign trade. This has played a major role in supporting India for becoming one of the successful countries in the world. . which has not only undertaken import and export duties but is also catering to the various needs of other sectors of the industry. Today Exim bank is not only an import and export bank. Exim banks mission is to facilitate globalization of Indian business. Today Exim bank has emerged as a huge financial institution in the world.

• Brochure.S.W.Eximius. June 2008.Books: • Banking Theory and Practice by Sundaram and Varshney.Scheider Publications: • Export-Import Act of India 1981 • News letters. • Annual Report 2007-2008 – Exim Bank. Khubchandani.Exim Bank Of India . March 2008. • Practice and law of Banking by B. • Export Import Financing by Gerhard.

• Economic Times • Hindu Business Line • DNA .

eximbankindia.org.com  www.in  www.com  www.com .nic.in  www.rbi.WEB SITES:  www.eximbankagro.commerce.eximcomm.