Export-Import Bank of India

Role and Functions

July 15, 2010

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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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Operational Philosophy
International Trade

Financing Promoting Facilitating

Through

Variety of Financing Value Added Business Research and

Programmes Advisory Services Analysis

Catalyst for Financing

Projects Products Services

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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 - Bulk Import Loan for export marketing/ research &
development
- Supplier‟s Credit Raw Materials
- Term Loans for overseas
equity
Short Term
investment
- Pre/Post Shipment - Direct equity stake in Indian/
Credit Overseas ventures of exporting
companies
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Exim Bank‟s Competitive Advantage

 Comprehensive range of products and services for exporters.

 Knowledge of exporters‟ requirements

 International experience. We can leverage on our international network.

 Competitive finance.

 Lending in both rupee and foreign currency.

 Foreign currency financing for SMEs.

 Exim Bank provides term loan for financing soft expenditure such
as marketing, product development, R&D financing.

 Special products like LOC, Overseas Investment Financing etc.

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Term Loans
Term Finance (For exporting companies – Criteria is minimum 10% of the
turnover should be by way of exports on FOB basis or Rs.5 crs exports
of FOB basis, whichever is less)

 Project Finance (Green Field / Brown Field)

 Production Equipment Finance Programme (PEFP)

 Import of Technology & Related Services

 Domestic Acquisitions of businesses/companies/brands

 Export Product Development/ Research & Development

 Long Term Working Capital Finance / General Corporate Finance

 Import Finance Programme (IFP) for non-exporting Companies.

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Working Capital Finance

Export Finance
 Pre-shipment Credit
 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)
General Working Capital Finance
 Working Capital Term Loans
 Bulk Import Finance Programme
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Overseas Investment Finance

 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
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Lines of Credit Programme

Lines of Credit (LOCs)

Exim‟s own LOCs to At behest of GOI, concessional LOCs to developing countries in

economically strong Asia/ Africa/ Latin America with a long-term perspective. While Exim
developing countries raises the resources and funds disbursement, GOI guarantee and
and provide interest equalisation support under India Development
regional Initiative. Total Lines – 136, Countries – 94 and Amt. USD 4.49 bn.
development banks
BENEFITS
 No recourse to Indian Exporters
 Exporters get payment on shipment
 Lines of Credit : A catalyst for trade promotion
 Enables import of Indian equipment and technology on deferred credit terms
 Direct Exposure on overseas borrowers
 An arrangement for financing a number of export contracts under one umbrella.
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Select Major Lines of Credit

 AFRICA (US$ 2.4 bn)
Gambia, Ghana, Guinea, Nigeria, Senegal, Sierra Leone, DR Congo, Eritrea, Togo, Equatorial Guinea,
Rwanda, Egypt, Morocco, Sudan, Ethiopia, Kenya, Mauritius, Malawi, Mozambique, Afreximbank, EBID, BOAD

 South & South-East Asia (US$ 880 mn)

Cambodia, Myanmar, Nepal, Sri Lanka, Vietnam

 West Asia (US$ 290 mn)

Bank Markazi, Iran; Iranian Commercial Banks (13), Syria

 LAC (US$ 168 mn)

Suriname, Banco Bradesco S.A., Brazil; Uniao De Bancos Brasileiros S.A.(UNIBANCO),

Brazil; Bancomext, Mexico; CAF, Central American Bank for Economic Integration

 CIS (US$ 65 mn)

 Oceania (US$ 50 mn)

 Europe (US 20 mn)

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Project & Services Exports

Promoting Project Exports
 Exports of projects and services, broadly categorised into Civil engineering
construction projects, Turnkey projects, Consultancy services.
 Over the past two decades, increasing number of contracts have been secured by
Indian companies in West Asia, North Africa, Sub Saharan Africa, South & South
East Asia, CIS and Latin America.
 Such projects have supplemented the efforts of the host country governments in
achieving their developmental objectives.

Projects Currently Under Execution with Exim Bank Support (as on 31st Mar, 2010)

No. of Contracts : 235 Value of Contracts : US$ 17.73 billion

No. of Countries : 38 No of Indian companies : 46

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Exim Bank and SMEs

EMS & Skill Upgradation for SMEs

 Exim Bank – Supporting exports from Rural Grassroots Enterprises

 Export Marketing support given for finding international market for products of rural
industries produced by SHGs / NGOs in different states.

 Exim‟s network of overseas offices play a proactive role.

 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 MOU partner network

 No upfront fees, but operates on success-fee basis

 Eximius Centres of Learning in Bangalore/ Pune/ Ahmedabad – for knowledge

building & capacity creation for SMEs
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Cluster
Approach
Clusters of Excellence
 Exim Bank initiated a „Clusters of Excellence‟ programme to assist small and
medium sized companies in achieving international quality standards
 The programme aimed to assist SMEs to:
 Achieve international quality certification
 Enhance their capability and acceptance in overseas markets
 Facilitate knowledge sharing with other companies in the cluster

 Enabled companies to access international consultancy at low cost due to

cluster approach
 Nearly 100 companies were assisted in a range of sectors
including
engineering goods
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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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Research &
Analysis Knowledge Building: Research Publications
 Research Studies on products, sectors, countries, economic issues
macro relevant to international trade and investment
 Sector Studies assessing export potential.
 Bilateral Trade and Investment Studies.
 International Trade Related Studies.

 Exim Newsletters
 Export Advantage (bilingual)
 Agri Export Advantage (in English, Hindi and 10 regional languages)
 Indo-China Newsletter (bilingual)
 Indo-Africa, Indo-Latin America and Indo-CIS Magazines (all bilingual)

 Contribution to Public Policy formulation through inputs on WTO aspects, impact

of exchange rates on exports, transaction costs, etc.
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Capacity Building for SMEs

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
 Over 300 companies supported in various sectors. Some of Cos. assisted include :

 Ayurvedic Products to Hungary  Processed foods to Singapore & Italy

 Tiger Prawns to a leading restaurant
chain in S.Africa
 Cotton fabrics to S. Africa
 Incense sticks to Singapore, S. Africa,
USA
 Agarbathis to S. Africa and Singapore
 Natural Sandstone and Tiles to Hungary
 Lucknow Chikan Kurtas to Singapore
 Grapes and Pomegranates to Singapore
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Innovative Programs for Empowering SMEs

GLOBAL TRADE FINANCE PROGRAM (GTFP))

 The program envisages confirmation of Letters of credit (L/Cs), Standby

letters of credit, demand guarantees, promissory notes or bills of
exchange denominated in Dollars, Euro, Yen or in other freely available
convertible currencies acceptable to IFC, received by Indian exporters
from pre-approved banks in the countries of IFC's operation, i.e. Central
Asia, Central and Eastern Europe, Latin America & the Caribbean, Middle
East & North Africa as also other regions of Asia and Africa.
 IFC will provide guarantee facility to Exim Bank to cover such L/C
confirmation and confirmation of other trade instruments
 The program currently covers 74 countries of IFC's operation and Exim
Bank may confirm the L/Cs & other trade instruments issued by pre-
approved banks for supporting India's exports to these countries.

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Institutional Linkages
Multilateral Agencies Trade & Invt. Promotion Agencies Export Credit Agencies

 World Bank  JETRO  Exim Bank Romania

 ADB  Netherlands Council for  Czech Export Bank

 African Development Trade Promotion  Hungarian Exim Bank

Bank  Polish Agency for  JBIC

 EBRD Foreign Investment  US Exim Bank

 MIGA  Board of Investment of  PT Bank Ekspor

 IFC Sri Lanka Indonesia

 UNCTA  Board of Invt. Mauritius  Exim Bank of China

D
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Exim Bank: Partner in Globalisation

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

 Product
Development
 Production
 Marketing
 Pre shipment
 Post shipment
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Export & Import Statistic of

NER: 2009-10
(Rs. Crs)
Division Export Import
Shillong 759.76 0.37
Dhubri 132.27 13.05
G u w a h a ti 465.94 0.98
Agartala 0.33 167.84
Karimganj 33.96 46.4
Imphal 2.15 8.31
T O TA L 1394.41 236.95
Source: Commissioner of Cust oms, N E R , Shillong
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Major commodities of export

from NER: 2009-10

(Rs. Crs)
Commodity Value % of total
export
Limestone 548.11 39%
Tea 465.47 33%
Coal 318.61 23%
TOTAL 1332.19 96%
Source: Commissioner of Cust oms, NER, Shillong
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Major commodities of import

into NER: 2009-10

(Rs. Crs)
Commodity Value % of total
export
Cement 73.68 31%
Stone chips 35.00 15%
Hilsa Fish 30.40 13%
TOTAL 139.08 59%
Source: Commissioner of Cust oms, NER, Shillong
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Exim Bank in the North East Region

 Exim Bank endeavours to play a role in promoting exports from the NER – through creating
awareness about export potential to financing of exports and export-oriented units - Office
in Guwahati estd. in 2003- covers the entire NER – 8 States
 No. of seminars conducted at key centres in NER (Guwahati, Itanagar, Shillong, Kohima,
Gangtok )
– covering various sectors including: Export of Agricultural Products; Handicrafts;
Medicinal Plants; Export Oriented Food Processing Industry; Export Procedure &
Documentation; Entrepreneurship Development.
 Linkages with key financial institutions and organisations – SIDBI, NABARD, APEDA, UBI,
NEDFi, North East Handicrafts & Handlooms Development Corp.; Promoter-member of
Small Farmers Agri Business Consortium (SFAC).
 Financed no. of units in various sectors including: passion fruit processing; cancer
research
institute & hospital; tourist resort; mfg. of refractories; bamboo flooring; ginger oil
processing & pineapple slices; mfg. of potato chips; mfg. of IV fluids; BPO; export of Agar
oil/perfumery; mushroom processing; mfg. of handloom products; ornamental fish; instant
tea processing; stevia powder processing and floriculture export .
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Export Potential of NE Region

 Mineral based products
 Agricultural & allied products, mainly organic products
 Spices – ginger, large cardamom, turmeric etc.
 Processed food products (niche products)
 Services exports – ITes, Tourism, Deemed Exports, Education & Healthcare
Services
 Handicrafts and handlooms
 Floriculture
 Aromatic and medicinal products
 Plantations crops – Tea, Rubber
 Bamboo based products
For any information and clarification. Please
contact: Mr. Shonly Litting
Chief Manager & Resident
representative Email:
shonly@eximbankindia.in
eximgro@eximbankindia.in

Export-Import Bank of India

4th Floor, Sanmati Plaza
Near Sentinel Building, G.S.
Road
Guwahati – 781 005
Tel: 0361-2462951/ 2450618
Fax: 0361-2462925
 Website

www.eximbankindia.in