EXIM BANK

EXIM Bank is popularly regarded as an ‘Export-Import Bank‘. It was established in the year 1982 under the Indian act of Export-Import Bank of India Act,1982
and has been set up to provide long-term finance to exporters as well as importers to meet their financial needs related to international trade of the country
India.
It is the biggest and the salient institution which is based on finance of export for the investment and trade of foreign countries with the country’s economic
growth.
The 1st Chairman of the bank was R.C. Shah and who was also the first Managing director. Exim Bank lengthens the LOCs (Lines of Credit) to banks of regional
development, financial overseas institutions, sovereign government and many more institutions for import and export of goods, services, trade, infrastructural
equipment etc. from and to the country India.
The Indian Government owned the EXIM Bank and was regulated by the Reserve Bank of India. This bank is owned by the government of India. David
Rasquinha is the recent Managing Director of EXIM Bank with Mumbai (Maharashtra) as it’s headquarter. The Indian Government decided to launch Rs. 1,500
crore capital in next year (financial year) in the EXIM Bank. Rs. 1,300 crore capital has been infused by the Indian government for this bank which supports
various new initiatives such as textile industry of India, schemes of concessional finance alteration etc.
Roles and Objective of EXIM Bank
The role and objectives of EXIM Bank are as follows;
● To ensure the export or import projections
● To encourage and facilitate the export of international and technical and merchant banking services as well as their joint ventures
● To lengthen the LOCs and credit of buyers
● To make competition for exporters on the financial terms
● To provide timely and relevant information to exporters of India about their opportunities in various export fields and areas
● To provide advice on currency related issues so that producers or manufacturers or India may perform the cost effective exports and imports
● To look into Indian finance problems and give resolution policies for it
● To enhance and promote the trade of foreigners in our country India
Functions of EXIM Bank
The role of EXIM Bank are as follows;
○ Financial export and import of services and goods from the country as exim trade.
○ It helps in financing the export as well as import of machines.
○ It also helps to refinance the bank services as well as other institutions for foreign financing trade or exim trade.
○ It helps in financing the export or import of services and goods from other countries also.
○ It also provides financial assets for the business in foreign and also helps the business to join the joint venture in foreign.
○ It also helps in providing the finance for technical assets to exporters and importers.
○ EXIM trade helps in functioning the export and import of Merchant Navy Banks
○ EXIM Bank also plays a major role in writing shares, bonds, stocks as well as debentures involved in foreign companies’ trade
○ It also offers the LOCs and short-term loans to foreign governments and banks
○ To provide finance in cooperative banks
○ This bank provides the services of business advisory
○ EXIM Bank also provides funds for foreign country’s projects
○ To partner the industries of India in their competitive and superior globalisation attempts
Conclusion
EXIM Bank is the bank which ensures the financial terms and assets related to Export and Import of international or foreign trade which was established in 1982.
It provides credit to the exporters and importers and allows safe and secure trade. It also formulated policies and guidelines for Indian import and export. It
allows the people to do safe business in foreign countries.
Introduction
The EXIM Bank (Export-Import Bank of India) is the country’s largest and leading export finance-based institution engaged in integrating the foreign trade and
investments with the national economic growth.
The EXIM Bank of India is considered as a rare case of a banking institution wherein both the concept and the need for such an institution had been questioned
for more than 20 years before it was finally established in the year 1982. In a rapidly shifting paradigm of finance, the EXIM Bank acts as a key player in the
promotion of cross border trade and investment.
Established in: September 1981
Headquarters: Bombay, Maharashtra
Authorized Capital: INR 10,000 crore
Managing Director: David Rasquinha

Objectives
The objective of the EXIM Bank had been to import technology and export marketing and product development, export production, pre-shipment and post-
shipment, and overseas investment. Given below are some more objectives of the EXIM Bank of India:
○ Providing financial assistance to importers and exporters, and functioning as the financial institution for coordinating the work of institutions
engaged in financing import and export of goods and services with a view to promote India’s international trade.
○ The EXIM Bank of India is encrusted to act on business principles in the best regards of the public interest.
○ The EXIM bank’s vision has transformed from being product-centric with Export Capability Creation and Export Credits, to a more customer-centric
approach by providing a wide array of products and services to empower businesses at all stages of a company’s business operations.
○ The bank aims to develop commercially cordial relationships with a target set of externally oriented companies by way of a wide array of products
and services that are aimed at improving their internationalization efforts.
○ It aims to utilize the leadership and expertise in Export Finance to strike a lasting difference to India-based companies with global aspirations. The
bank also aims to facilitate globalization of the Indian businesses.

Importance
The EXIM Bank of India is primarily responsible for providing financial assistance to the exporters and importers of the country. It also supervises and
coordinates the working of the other bodies that work in the import-export sector in India.

Besides, the EXIM Bank also strives to promote the foreign trade sector in India. In the early 1990s, the Bank had introduced the Clusters of Excellence in the
country. Its aim was to enhance the quality standards of the imports as well as exports. For that, the EXIM Bank also has a tie-up with the European Bank for
Reconstruction and Development.
In order to promote the exports, the EXIM Bank has also devised schemes such as production equipment finance program, vendor development finance, export
marketing finance, and so on.

EXIM Bank – Financial Products

The EXIM Bank functions take place through its various financial products. Let us have a quick look at the EXIM Bank’s financial products in brief as below:
○ Buyer’s Credit: With this credit facility, the overseas buyer can open a “letter of credit” in favour of the Indian exporter and can import goods and
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services from India on the terms of deferred payment.
○ Corporate Banking: Under this one, the EXIM Bank offers a myriad of financing programs to enhance the exports competitiveness of the Indian
companies. It also caters to their working capital and supervises the investment requirements.
○ Lines of Credit: Through the Lines of Credit (LOC) the Indian exporters are able to enter new geographies or expand their business in the existing
markets without any risk of payment from the overseas importers.
○ Overseas Investment Finance: The EXIM Bank extends term loans to Indian companies for the purpose of equity investments in their foregin joint
ventures with a view to enhance export opportunities.
○ Project Exports: It enables project exports from India in a bid to help the Indian companies acquire overseas contracts in engineering,
procurement, and construction (civil, electrical, mechanical, etc.)
○ Marketing Advisory Service: This group of the EXIM bank plays a key role in creating and enhancing export capabilities and international
competitiveness of the Indian exporters.
○ Export Advisory Service: This arm offers a wide range of advisory support and information services to the exporters enabling them to exploit
export opportunities, improve competitiveness, and evaluate international risks.
○ Research & Analysis: Through the Research & Analysis Group (RAG) the EXIM bank monitors trends in the domestic as well as international
economies to analyse their impact on the Indian economy.

Functions of the EXIM Bank

The major functions of the EXIM Bank include:
○ Financing exports and imports of goods and services from India
○ Financing the import and export of goods and services other countries as well
○ Underwriting shares/ stocks/ debentures/ bonds of companies that carry out foreign trade
○ Financing the import and/ or export of machinery and equipments on lease or hire-purchase basis
○ Undertaking functions of a merchant bank for the importer or exporter in transactions of foreign trade
○ Providing refinancing services to banks and other financial institutions for their capital requirements of foreign trade
○ Offering short-term loans or lines of credit to foreign banks and governments.
The Export-Import Bank of India, commonly known as EXIM Bank, is a specialized financial institution established by the Indian government in 1982. It primarily
focuses on promoting and facilitating international trade and investment. Here are some key points about EXIM Bank of India:
Mission: EXIM Bank’s mission is to be a catalyst for the growth of Indian businesses by providing financial and strategic support for their global expansion.
Functions: The bank offers a range of financial services to Indian exporters and importers, including export credit, import finance, project finance, and export-
related advisory services.
Export Credit: EXIM Bank provides export credit in the form of term loans, working capital finance, and export credit insurance to Indian exporters.
Project Finance: It supports Indian companies’ overseas projects by providing project finance and advisory services for infrastructure and other development
projects.
Global Presence: The bank has a global presence with offices and representative branches in various countries to facilitate international trade and investment.
Government Support: EXIM Bank receives financial support and guarantees from the Indian government, which allows it to provide financial assistance on
concessional terms.
Export Promotion: The bank plays a crucial role in supporting the Indian government’s initiatives to boost exports and achieve a higher share in global trade.
Research and Analysis: It conducts research and analysis related to international trade, providing valuable insights and data to businesses and policymakers.
Trade Facilitation: EXIM Bank collaborates with various organizations to promote trade, including partnerships with international financial institutions and export
credit agencies.
Sustainability: The bank also focuses on promoting sustainable development and environmentally friendly projects as part of its initiatives.
Overall, EXIM Bank of India plays a vital role in supporting the country’s international trade and economic growth, helping Indian businesses expand their global
footprint.