EXIM_BANK......[11].ppt111 | Banks | Exports

EXIM BANK

Export-Import Bank of India.

Presented By:1. Anand Singh. 2. Chetan Patil. 3. Faylena Thomas. 4. Tejas Joshi. 5. Rounak H.

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Company profile
y Type: y Industry: y Founded: y Headquarters: y Products:

Public Banking and financial services 1982 Mumbai, India

Investment banking, Commercial banking, Retail banking, Private banking, mortgages Asset management, Credit cards
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 The Export-Import Bank of India, also known as Exim Bank of India, is the leading institution for financing exports and imports.  Set up in March1982 under the Export-Import Bank of India Act 1981.  Exim Bank is fully owned by the Government of India.  Launched with an aim to augment exports from India and also to combine the country's foreign trade and investment with the overall economic growth.  Began its operations as a supplier of export credit, over the period, evolved into an institution that helps Indian companies in their export and import activities by offering a broad variety of products and services.  The Exim Bank's focus is on export of manufactured goods, project exports, exports of technology services and exports of computers software.
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Introduction

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«´ ³« shall act on business principles with due regard to public interest´ : The Export-Import Bank of India Act.Objective The primary objective of the Export-Import Bank of India ³« for providing financial assistance to exporters and importers. 1981 y 4 .

Vision 5 .

access to the latest technology and a climate for innovation. Export Credit Guarantee Corporation of India(ECGC). and the business community. . with vast commercial and international banking experience first Chairman and Managing Director of Exim Bank during January 1982-January 1985. Reserve Bank of India.C. Shah.Exim Bank is managed by a Board of Directors. Shri R. public sector banks. a seasoned banker. multi-disciplinary approach to problem solving. His vision helped the setting up of the institution as a unique organizational model. has representatives from the Government. non-hierarchical culture. with a flat.

Go v e r n m e n t o f In d i a . Department of Commerce Dr. Government of India. M i n i s t r y o f C o m m e r c e & In d u s t r y. A . Ravneet Kaur Joint Secretary (IF). R a n g a n a t ha n C h a i r m a n A n d M a n a g in g D i re c t o r Directors D r. Ministry of Finance. C . Department of Financial Services . M i n i s t r y o f C o m m e r c e & In d u s t r y. D e p a r t m e n t o f In d u s t r i a l Policy & Promotion Smt. Kaushik Basu Chief Economic Adviser Government of India. Ministry of Finance S h r i R a j i n de r P a l S i n g h S e c r e t a r y. R a h u l K h u l l a r Secretary Go v e r n m e n t o f In d i a .S h r i T.

The Bank¶s Overseas Investment Finance programme offers a variety of facilities for Indian investments and acquisitions overseas.INITIATIVES Exim has been the prime mover in encouraging project exports from India. ‡ Loan to Indian companies. foreign governments and their agencies. 8 . ‡ Direct participation of Exim bank in equity. The Bank extends lines of credit to overseas financial institutions. ‡ Non funded facilities such as line of credit and guarantee.

Under its Export Marketing Finance programme. The bank provides financial assistance by way of term loans in Indian rupees/ foreign currency for setting up new production facility and for acquisition of production equipment/technology.Contd. Exim Bank supports Small and Medium Enterprises in their export marketing efforts including financing the soft expenditure. advisory and support services. Exim Bank supplements its financing programmes with a wide range of value-added information. The Bank has launched the Rural Initiatives Programme with the objective of linking Indian rural industry to the global market.. 9 ..

consultant and promoter.y Exim Bank plays four-pronged role with regard to India's foreign trade: those of a coordinator. a source of finance. 10 .

.Film Finance .Export Credits Indian companies executing .Rural Initiatives 11 .Finance for Export Oriented Units .Services: For projects overseas.Lines of Credit .Overseas Investment Finance .SME & Agri Finance .

in Indian Rupees and foreign currency. personnel and equipment etc. costs of mobilisation/acquisition of materials. extend term credit to overseas importers.Exim Bank's Pre-shipment Credit facility. with usance not exceeding 90 days. 12 . For commercial Banks:-Exim Bank offers Rediscounting Facility to commercial banks.e. so that they can. provides access to finance at the manufacturing stage. in turn.Export Credits Pre-shipment credit:. enabling them to rediscount export bills of their SSI customers. For Exporters of Consultancy and Technological Services:-Exim Bank offers a special credit facility to Indian exporters of consultancy and technology services. For Project Exporters:-Indian project exporters incur Rupee expenditure while executing overseas project export contracts i.

Overseas investment Finance Finance for Indian Company's equity participation in the overseas. Manufacturing facility of 'Advanta Semillas'. corn. Direct Equity by Exim Bank in the overseas JV/ WOS of an Indian Company . with support from Exim Bank. Argentina. Finance (for equity/debt component) for acquisition of overseas businesses / companies including leveraged buyouts including structured financing options . Mumbai based United Phosphorus. sorghum etc. has acquired Advanta which has similar facilities in Australia and Thailand. in addtion to Argentina 13 . a company producing hybrid seeds of sunflower.

preshipment/post-shipment credit. NABARD. The Bank has strong linkages with other stakeholders in agri sector such as Ministry of Food Processing.g. Tuna Export. bulk import finance. overseas buyers' credit. 2.1. Financial assistance is provided by way of term loans. (SFAC). National horticulture board. India's current export market for tuna comprises of more than 15 countries. 14 . E. L0w Cost Irrigation. guarantees etc.Agri Finance The globalization and post-WTO scenario offers considerable scope for exports of Indian agricultural products.:.

y Nature of Finance ‡ Cash flow financing for film production ‡ Cash flow financing for film distribution/exhibition in overseas markets y ‡ Term loans for fixed assets finance ‡ Term financing for export market development 15 .15 corers for film production.Film finance in export ‡ The Bank has till date sanctioned loans more than Rs 33.

there were 934 films certified across. 16 . y In 2004. with Hindi accounting for 245 of them.Film industry y The Indian film industry is an integral part of the Indian socio-economic psyche and the most popular source of entertainment in the country. y Film industry is the world's biggest film industry in terms of the number of movies produced and released in a year.

Films financed by Exim Bank: y Fanaa y Kabul Express y Dhoom -2 y Don. y And many more. 17 ...

capacity. y Exim Bank believes that there is a strong linkage between export development and poverty reduction. y Through proper guidance and support. etc. y Globalisation will be successful and acceptable only if benefits reach the rural population. 18 .Rural initiatives. quality. delivery. pack NGOs and SHGs are the front for rural enterprises. y Rural enterprises suffer from various handicaps including image. rural grass root enterprises can access the global market and realize better prices for their products thereby contributing to poverty reduction aging.

y Provides an internationally competitive duty free environment coupled with better infra-structural facilities for export production. 19 . y Have become dominant players in our export strategy with a share of about 10% in the country¶s export performance. y Need for higher level of technological and industrial progress made Government devise a series of export promotional schemes known as EOU scheme.Export Oriented Units (EOUs): y Units that export 100% of their production enjoy the status of Export Oriented Units and its benefits thereof.

FINANCE FOR EOUs: y Term Finance: Finances provided by EXIM bank for fixed tenures for various purposes. It includes : y Project Finance y Equipment Finance y Import of Technology & Related Services y Domestic Acquisitions of businesses/companies y Export Product Development/ Research & Development 20 .

Contd« y Working Capital Finance: Finances provided by EXIM bank to different EOUs for conducting its operations efficiently. It includes: y y y y Short term Working Capital loans (< 2 years) Long term Working Capital loans (upto 5 years) Export Bills Discounting Cash Flow financing 21 .

y Provides depth to the industrial base of the economy.SMEs: y Significant contribution in Indian economy. y Increases trade. y Generates employment. creating new entrepreneurship ventures. 22 . contributes to national output and exports.

not adequately focused. y SMEs require business advisory servicesy To enhance their international competitiveness in a highly competitive globalising world. y Services of reputed national and international consultants are not cost effective and also. 23 .But«.

y providing business leads.Thus«. safety. etc. y capacity building in niche areas such as quality. y information dissemination. y EXIM bank provide a suite of services to its SME clients. assisting in generation of export business. 24 . y financial advisory services. y handholding in winning an export contract. export marketing.

by a bank or other financial institution. regional development banks. 25 . to import goods and services from India on deferred credit terms. y Extends LOCs to overseas financial institutions. y Indian exporters can obtain payment of eligible value from Exim Bank. against negotiation of shipping documents. y Enable buyers in those countries. business or individual. sovereign governments and other entities overseas. without recourse to them.Lines of Credit (LOCs): y Any credit source extended to a government.

Importer consults borrower and signs contract with exporter. Exporter checks procedures and Service fee with Exim Bank and negotiates contract with Importer. Exporter ships goods. 7. 5.Procedural flow chart: 1. 6. Exim Bank approves contract and advises borrower and also exporter and commercial bank. 3. 9. Borrower repays Exim Bank on due date. Exim Bank reimburses Commercial bank on receipt of claim by debit to borrower. Exim Bank signs agreement with Borrower and announces when effective. 4. Commercial bank negotiates shipping documents and pays exporter. Borrower approves contract. 26 . 8. 2.

Government/ Private y Break-up of contract value . Externalisation undertaking of central bank y Foreign Exchange Outgo y Facilities required by the exporter 27 .Convertible Currency / Local Currency y Security : Letter of Credit.Indian / Third Country / Local Risk Assessment of Buyer's Country y Estimates of Cost and Profitability y Currency of Payment . Bank Guarantee. track record y Status of overseas client . Government Guarantee.Criteria for Consideration for Clearance of Export Proposals: y Exporter's financial position.

Salient Parameters of Appraisal for Clearance of Export Proposals: y Payment Terms : Advance Payment. 28 . 5. Government Guarantee. where necessary y Important Contractual Clauses : 1. Price Escalation. Externalisation undertaking of central bank y Availability of ECGC Cover. y Security : Letter of Credit. Progress / Down Payment. Bank Guarantee. Arbitration 3. Penalty / Liquidated Damages for delay in Contract Execution. Status of Exporter : Prime Contractor/Sub-contractor/ Consortium Member 4. Pre-shipment Inspection 2.

29 .y Source of Funding : Multilateral / Local y Facilities required by the exporter.

U Soe Tha. Chairman & Managing Director. y EXIM Bank has so far extended several lines of credit to Myanmar aggregating US$ 250 million for a variety of projects such as railways. T C A Ranganathan. Nyi Phyu Hla. Managing Director. y These projects will be executed by the India¶s state-owned RITES Ltd. EXIM Bank and Mr. refinery. Minister for National Planning & Economic development of Myanmar. This was announced by Mr. 30 . truck assembly plant and electricity transmission lines in Myanmar. telecom. after the signing of a Memorandum of Understanding (MoU) by Mr. Myanmar Foreign Trade Bank at Federation House .Recent News: y EXIM Bank of India extended a US$ 60 million line of credit to Myanmar for financing of railway projects.

development of hydropower and manufacturing in Myanmar. 31 .y The Myanmar Government was encouraging the involvement of the private sector in a big way. y Minister Tha said that about 400 foreign enterprises from 31 countries were doing business from and with Myanmar. For instance. In contrast only 5 Indian companies were present in the country with an investment of US$ 200. accounting for an investment of US$ 23 billion. y The new areas for cooperation were identified as construction. the government was supporting the setting up of private banks and had begum privatization of petrol filling stations.000.

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