Transcript Role & Functions of Exim Bank Roshanara Sardar Manager Exim Bank, Chennai

Role & Functions of Exim Bank
Trivandrum, July 17, 2009
Roshanara Sardar
Manager
Exim Bank, Chennai
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Exim Bank of India

SET UP BY AN ACT OF PARLIAMENT IN SEPTEMBER 1981

WHOLLY OWNED BY GOVERNMENT OF INDIA

COMMENCED OPERATIONS IN MARCH 1982

APEX FINANCIAL INSTITUTION

OBJECTIVES:
“… for providing financial assistance to exporters and importers, and for
functioning as the principal financial institution for coordinating the working
of institutions engaged in financing export and import of goods and services
with a view to promoting the country’s international trade…”
“… shall act on business principles with due regard to public interest”
(Export-Import Bank of India Act, 1981)
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Evolving Vision
Product Centric
Approach
Export
Credits
1982-85
Export Capability
Creation
“To develop commercially viable
relationships with a target set of
externally oriented companies by
offering them a comprehensive range of
products and services, aimed at
enhancing their internationalisation
efforts”
1986-94
Comprehensive Range of
Customer Centric
Products And Services
Approach
– All Stages of the Export Business Cycle –
Exim Bank TODAY
Leadership and Expertise in India’s Export Finance
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Organisation
BOARD OF DIRECTORS (16)*
OFFICES
 Chairman and Managing Director
Domestic Offices: 9
Overseas Offices:6
 5 Directors: Government of India
 Ahmedabad
 London
 Bangalore
 Dakar
 Chennai
 Durban
 Guwahati
 Dubai
 Hyderabad
 Singapore
 Kolkata
 Washington D.C.
 3 Directors: Scheduled Banks
 4 Directors : Professionals/Experts
 1 Director nominated by RBI
 1 Director nominated by IDBI
 1 Director nominated by ECGC
Appointed
by
Govt. of India
* As per Exim Bank Act
 New Delhi
 Mumbai
 Pune
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Operational Philosophy
International Trade
Financing
Promoting
Facilitating
Through
Variety of Financing
Programmes
Value Added Business
Advisory Services
Research &
Analysis
Catalyst for Financing
Projects
Products
Services
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Range of Products & Services
Presence Across All Stages of Business Cycle
Export
Marketing
PreShipment
Export
Production
Advisory
Services
PostShipment
Export
Product
Development
Value Based Services
Knowledge
Building
Investment
Abroad
INFORMATION
Import
Finance
Advisory
Services
SUPPLEMENTS FINANCING PROGRAMMES
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Financing Programmes
Financing Programmes (Various Currencies)
Export Credit
Medium / Long Term
- Lines of Credit
- Buyer’s Credit
- Supplier’s Credit
Short Term
- Pre/Post Shipment
Credit
Import Credit
- Import Loan for
capital goods
- Bulk Import Loan for
Raw Materials
Loans for Exporting Units
- Term Loans for expansion/
diversification/ new projects/
export product development/
export marketing/ research &
development
- Term Loans for overseas equity
investment
- Direct equity stake in Indian/
Overseas ventures of exporting
companies
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Export Marketing Finance
 Administered an Export Marketing Fund from World Bank
 SMEs extended export marketing finance to implement strategic export marketing plans
aimed at entry into developed country markets and term loans for supply side upgradation
 Exim Bank’s assistance resulted in generation of significant exports to developed country
markets
 Many of these companies have become large companies with high export orientation
 Based on the successes achieved in the programme implemented by Exim Bank in India,
the Bank has shared its experience with other developing countries, with World Bank
funding
 Over 300 companies supported in variety sectors:
 Knitting
 Pharmaceuticals
 Herbal Products
 Needles
 Jute Products
 Textiles
 Polyester Ropes
 Printing Machinery
 Software
 Home Appliances
 Auto Components
 Castings
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Lines of Credit
 Exim Bank’s extends export Lines of Credit (LOC) to overseas financial
institutions, regional development banks and foreign governments and their
agencies and Buyers’ Credits (BC) to foreign corporates
 LOCs also extended at the behest of Government of India
 LOCs serve as a market entry mechanism to Indian exporters and provide a
safe mode of non-recourse financing option to Indian exporters
 LOCs/BCs are particularly relevant for Indian SME exporters as the payment
risk is borne by Exim Bank
 Bank has in place 117 operative LOCs covering more than 94 countries of
value of over US$ 3.85 billion
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Enterprise Management Development Services
 Competency as Collateral :
 Development of Loan.Com an IT tool kit which will enable SMEs to develop
bankable business plans thereby enhancing their access to finance
 Tool kit will also enable lending institutions to screen viable projects
 Pioneering initiative for supporting SMEs and for providing term loans and
export finance facilities to identified units to help them in their globalisation
efforts.
 Learning from the programme to be transferred to other developing
countries; capacity creation and institution building in the global arena.
 Exim Bank has already financed select firms by way of term loans and export
finance facilities, using the tool kit
THIS INITIATIVE HAS BEEN LAUNCHED BY ITC FOR THE FIRST TIME WITH
EXIM BANK AS A PARTNER.
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Global Trade Finance under IFC
 Agreement between Exim Bank and International Finance Corporation
(IFC)
 Envisages confirmation of Letters of Credit (L/Cs), Standby letters of
Credit, demand guarantees, promissory notes or bills of exchange
received by Indian exporters
 From 105 pre-approved banks in more than fifty countries of IFC’s
operation
 Covers the risk of non-payment by Issuing Bank to Negotiating / Paying
banks
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Export Marketing Services

Exim Bank has launched an ‘Export Marketing Services’ programme

Seeks to help Indian SME sector to establish their products overseas and enter new markets through Exim’s overseas
offices and institutional partner network
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Helps Indian SMEs in their export efforts by proactively assisting in locating overseas buyers/partners for their
products/services
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No upfront fees, but operates on success-fee basis

Some of the sectors assisted include :

Agricultural Equipments to Senegal
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Processed foods to Singapore & Italy
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Ayurvedic Products to Hungary
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Agarbathis to S. Africa and Singapore
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Tiger Prawns to a leading restaurant chain in S.Africa
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Natural Sandstone and Tiles to Hungary
Cotton fabrics to S. Africa
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Incense sticks to Singapore, S. Africa, USA
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Lucknow Chikan Kurtas to Singapore
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Setting up of oil mill on turnkey basis in Senegal (pipeline)
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Grapes and Pomegranates to Singapore
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Seting up of Solar City in Senegal(pipeline)
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Seminars / Workshops
 Eximius Centres of Learning for knowledge building & capacity creation for SMEs
– Bangalore/Pune/ Ahmedabad
 Set up to organise seminars and workshops for the benefit of exporting
companies, particularly SMEs
 Subjects include:
 International trade & investment
 Quality
 Export marketing
 Packaging
 Sector and country specific
 Business opportunities in multilateral
programmes
agencies funded projects
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Research Publications
 Exim Bank has brought out Research Papers pertaining to SMEs on policies,
institutional support and infrastructure
 Institutional Support to SMEs: A Study of Select Sectors
 Institutional Support Systems for SMEs in India and International Experiences
 Export Performance of Small and Medium Enterprises in India
 Others research papers on sectors that are predominated by SMEs include:
 Sports Goods
 Indian Handicrafts
 Chemicals
 Leather
 The Bank has also brought out a publication on ‘Business Practices of Successful
Indian Exporters’, outlining the internationalisation strategies adopted by successful
Indian firms including SMEs
 ‘Agri Export Advantage’, a bimonthly publication in English, Hindi and 10 regional
languages
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Agri Business Group
 The Bank has put in place an ‘Agri Business Group’
 The Group looks for viable projects and export transactions in agriculture sector.
 The Bank has set up an agro-portal, in-house, which is an IT initiative to promote
knowledge-based agriculture enterprise. www.eximbankagro.in
 The Bank brings out a bi-monthly newsletter ‘Agri Export Advantage’ to facilitate
information dissemination in 10 regional languages.
 Brought out following study reports;
 Organic Farming
 Plantation Sector
 Agro & Processed foods –Export Opportunities
 Assisted a number of Small and Medium exporters in the Agro Sector covering
following products;
 Honey, Mango pulp, mushrooms, gherkins,fresh & processed fruits & Vegetables
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Promoting Investment
Supporting two-way investment
 Comprehensive assistance:
 Pre investment advisory services
 Finance through debt and equity
 Finance available for:
 Greenfield projects;
 Brownfield expansion;
 Overseas acquisitions directly or through special purpose vehicles
 Direct equity participation in Indian ventures abroad
 Joint investments by Indian and overseas company in third country markets in addition
to facilitating investments into India.
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Institutional Linkages
Multilateral Agencies
 World Bank
 EBRD
 ADB
 African Development
Bank
 MIGA
 IFC
 UNCTAD
Trade & Invt. Promotion Agencies
 Board of Investment of
Mauritius
 Netherlands Council for
Trade Promotion
 Board of Investment of
Export Credit Agencies
 Afrexim Bank
 National Bank of Egypt
 Czech Export
Bank(CEB)
 Belvnesheconombank,
Sri Lanka
Belarus
 Sharjah Chamber of
Commerce & Industry
 Caribbean Association
of Industry & Commerce
 Czech Export Bank
 Hungarian Exim Bank
 Exim Bank of China
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Exim Bank: Partner in Globalisation

Technology

Final Products

Capital
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Capital Goods
(Foreign Investment)
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Raw Materials

Capital Goods

Capital
(Overseas Ventures)
 Product
Development
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Production
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Marketing
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Pre shipment

Post shipment
THANK YOU
Website
www.eximbankindia.in