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    Export-Import Bank of India: A Presentation AHMEDABAD: May 31, 2008

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    The document provides information about the Export-Import Bank of India (Exim Bank). It discusses that Exim Bank was established in 1981 by the Indian parliament to provide financial assistance to Indian exporters and importers. Exim Bank aims to promote India's international trade through a variety of financing programs and value-added services. It offers products and services to support companies throughout the export business cycle from export marketing to post-shipment activities. Exim Bank also facilitates project exports, overseas investment by Indian companies, and financing for small and medium enterprises.

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    Export-Import Bank of India: A Presentation AHMEDABAD: May 31, 2008

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    24 views28 pages
    The document provides information about the Export-Import Bank of India (Exim Bank). It discusses that Exim Bank was established in 1981 by the Indian parliament to provide financial assistance to Indian exporters and importers. Exim Bank aims to promote India's international trade through a variety of financing programs and value-added services. It offers products and services to support companies throughout the export business cycle from export marketing to post-shipment activities. Exim Bank also facilitates project exports, overseas investment by Indian companies, and financing for small and medium enterprises.

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    eximbank2007

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    The document provides information about the Export-Import Bank of India (Exim Bank). It discusses that Exim Bank was established in 1981 by the Indian parliament to provide financial assistance to Indian exporters and importers. Exim Bank aims to promote India's international trade through a variety of financing programs and value-added services. It offers products and services to support companies throughout the export business cycle from export marketing to post-shipment activities. Exim Bank also facilitates project exports, overseas investment by Indian companies, and financing for small and medium enterprises.

    Copyright:

    © All Rights Reserved
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    Download as ppt, pdf, or txt
    24 views28 pages

    Export-Import Bank of India: A Presentation AHMEDABAD: May 31, 2008

    Uploaded by

    Anonymous DrSHPbse
    The document provides information about the Export-Import Bank of India (Exim Bank). It discusses that Exim Bank was established in 1981 by the Indian parliament to provide financial assistance to Indian exporters and importers. Exim Bank aims to promote India's international trade through a variety of financing programs and value-added services. It offers products and services to support companies throughout the export business cycle from export marketing to post-shipment activities. Exim Bank also facilitates project exports, overseas investment by Indian companies, and financing for small and medium enterprises.

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    © All Rights Reserved
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    of 28

    Export-Import Bank of India:

    A Presentation
    AHMEDABAD : May 31, 2008

    Exim Bank of India

    EXIM BANK

    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 countrys international trade
    shall act on business principles with due regard to public interest
    (Export-Import Bank of India Act, 1981)

    Evolving Vision
    Product Centric
    Approach
    Export
    Credits
    1982-85

    Export Capability
    Creation

    EXIM BANK

    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 Indias Export Finance

    Organisation
    EXIM BANK

    BOARD OF DIRECTORS (16)*


    Chairman and Managing Director
    5 Directors: Government of India

    OFFICES IN INDIA
    HEAD
    OFFICE
    Domestic
    Offices

    MUMBAI
    9

    3 Directors: Scheduled Banks


    4 Directors : Professionals/Experts
    1 Director nominated by RBI

    Appointed
    by
    Govt. of India

    Delhi
    Chennai
    Hyderabad
    Pune

    OFFICES OVERSEAS

    1 Director nominated by IDBI


    1 Director nominated by ECGC

    Mumbai
    Kolkata,
    Bangalore
    Ahmedabad
    Guwahati

    Overseas
    Rep. Offices

    Washington D.C.
    Singapore
    Johannesburg

    * As per Exim Bank Act

    London
    Dubai
    Dakar

    Operational Philosophy

    EXIM BANK

    International Trade

    Financing

    Promoting

    Facilitating

    Through
    Variety of Financing
    Programmes

    Value Added Business


    Advisory Services

    Research &
    Analysis

    Catalyst for Financing


    Projects

    Products

    Services

    Range of Products & Services


    At All Stages of Export Business Cycle

    Export
    Marketing

    PreShipment

    Export
    Production

    Value Based Services to Exporters

    Advisory
    Services

    PostShipment

    Export
    Product
    Development

    EXIM BANK

    Knowledge
    Building

    Investment
    Abroad

    INFORMATION
    Import
    Finance

    Advisory
    Services
    SUPPLEMENTS FINANCING PROGRAMMES

    FINANCING, FACILITATING INDIAS TWO WAY TRADE & INVESTMENT

    Financing Programmes
    EXIM BANK

    Financing Programmes (Various Currencies)


    Export Credit
    Medium / Long Term
    - Lines of Credit
    - Buyers Credit
    - Suppliers 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

    Lines of Credit Programme

    EXIM BANK

    Lines of Credit (LOCs) (Long term)


    Exims own LOCs to economically
    strong developing countries and
    regional development banks

    At behest of GOI, concessional LOCs to


    developing countries in Asia/ Africa/ Latin
    America with a long-term perspective.
    While Exim raises the resources and
    funds disbursement, GOI guarantee and
    provide interest equalisation support
    under India Development Initiative

    Status of LOCs
    No. of LOCs operative

    86

    No. of countries covered

    85

    Total amount of LOCs sanctioned

    US$ 2.83 billion

    Project & Services Exports

    EXIM BANK

    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
    No. of Contracts

    : 189

    Value of Contracts

    : US$ 11.5 bn

    No. of Countries

    : 35

    No of Indian companies : 41

    10

    Promoting Investment
    Supporting overseas investment
    Term loans for equity investment overseas by Indian corporates
    Term loans to overseas WOS / JV
    Term loans for overseas acquisition by Indian corporates
    Direct equity stake in overseas ventures of Indian corporates
    Select overseas investments financed during the year (focus on mid-caps):
    Jain Irrigation Systems Ltd (Israel)
    Foods Fats & Fertilizers Limited (Ghana)
    Alucast Auto Parts Pvt Ltd (Germany)
    Vijai Electricals Limited (Brazil)
    Welspun Tubular LLC (USA)
    Rain Calcining (USA)

    EXIM BANK

    11

    Overseas Investment Finance

    EXIM BANK

    Snapshot of Overseas Investment Finance (as of 31st Dec 2007)

    No. of companies supported

    170

    No. of ventures supported

    208

    No. of countries

    60

    Loans sanctioned

    Rs. 8328 cr

    Loan Portfolio as of now

    Rs. 2757 cr

    12

    THE SME SECTOR


    GLOBAL PERSPECTIVE
    SMEs Important segment of economy in developed as well as developing countries.
    In OECD countries, SMEs account for over 95% of firms and 60-70% of employment.
    In Asia SMEs account for 60% of capital investment, 60% of employment, 50% of
    GDP, 35% of exports .
    SME Definition: Based on investment in plant & machinery, nos. of people, turnover etc.
    Entrepreneurship Development
    Generation of Employment

    Flexibility to Adapt to Changing Environment


    Input Supply to Large Enterprises

    Better Resource Utilisation


    Balanced Regional Development.

    Exports

    13

    INDIAN SME SECTOR


    INDIAN PERSPECTIVE
    SMEs contribute approx. 40% of Indias domestic production, around 35%
    of total exports, 80% of Industrial employment, largest manpower employer
    overall after agriculture.
    SMEs are mostly in unorganised sector and source of livelihood for
    millions. Have a greater social contribution than economic contribution.
    SME Constraints: Financing, Infrastructure, Taxes & Regulations,
    Marketing, Technology and Human resource
    In view of strong local presence, SME growth is essential for countrys
    development. SME Units grow eventually to medium and large enterprises
    and SME promotion therefore becomes a major area for policy focus.

    14

    INDIAN PERSPECTIVE : CONTINUED


    Micro, Small and Medium Enterprises Development Act (MSMED ACT): GOI enacted the
    act in June 2006 and it came into force from October 2006. Inclusion of service sector in the
    ambit of MSME. Promotion and development of SMEs, setting up appropriate legal &
    regulatory framework, removing barriers to competition & trade, facilitating investment and
    trade by strengthening the framework governing the policy, credit facilities, grants, development
    of skill in employees, cluster development and developing of SME policy, regulatory and
    financing framework.
    Definitions: Based on Investment in Plant & Machinery
    MICRO
    SMALL ENTERPRISE
    MEDIUM ENTERPRISE

    MANUFACTURING
    Upto Rs.25 lakhs
    > Rs.25 lakhs & <=Rs.5 crores
    > Rs.5 crores & <=Rs.10 crores

    SERVICES
    Upto Rs.10 lakhs
    >Rs.10 lakhs & <=Rs.2 crores
    > Rs.2 crores & <=Rs.5 crores

    SME Rating Agency of India (SMERA), joint initiative by SIDBI, Dun & Bradstreet, CIBIL and
    several leading banks in the country. It is an independent, 3 rd party assessment of overall
    condition of the SME. Takes into account SMEs financial condition and several qualitative
    factors that have bearing on credit worthiness of the SME.
    Benefits: Wide Recognition and Acceptance, Favourable borrowing terms & faster access to
    credit, Adds credibility, Benefits to banks.

    15

    INDIAN SME SECTOR


    DOMINANT IN MAJOR SECTORS
    Certain vibrant export sectors in India are dominated by SME Sector. e.g.
    Engineering (33% of exports are from
    SSIs)
    Chemicals (33%)
    Pharmaceuticals (44%)
    Leather (70%)

    Processed Food (70%)


    Marine Products (47%)
    Sports Goods (100%)
    Readymade Garments
    (90%)
    Apparel

    Growth of industries in the small scale sector in India has contributed to


    the overall growth or the Gross Domestic Product as also in terms of
    employment generation and exports.

    16

    INDIAN SME SECTOR


    SME FINANCING : EXTERNAL ISSUES
    GOI POLICY PACKAGE FOR SMEs:Government of India has announced
    policy package for stepping up credit to SMEs. The main objective of the
    package is to double the flow of credit from the level of Rs.67,600 crores in
    FY04-05 to Rs.1,35,000 crores by FY09-10 to the SME sector.
    Public sector banks to achieve a minimum 20% y-o-y growth in credit to the
    SME sector & to follow a transparent rating system with cost of credit linked to
    credit rating of the enterprise.
    Exim Bank: The Bank is targeting to grow its SME portfolio at a CAGR of 30%
    as against the growth target of 20% set by GOI. Currently SMEs constitute
    around 20% of the Banks portfolio.

    17

    INDIAN SME SECTOR


    Challenges in Credit Delivery
    Access to Information
    Financial Statements
    Constitution of the Business Entity
    Hand Holding
    Security
    Monitoring Issues

    18

    Exim Bank and SMEs


    BUSINESS IMPERATIVES
    Higher Interest Spread for SMEs
    Focus Area, as with all banks
    Early Client Acquisition
    Diversification of Portfolio
    Policy Framework (Enhanced Credit Flow to SME Sector)
    Definition of SME: As per GoI/RBI guidelines.
    SME Group: Handling business proposals from Rs.5 lakhs to Rs.25 crores,
    mostly under PEFP, EOU, Pre-shipment/Post-shipment facilities.

    19

    Exim Bank and SMEs


    FINANCING NEEDS OF SME EXPORTERS

    Pre-shipment/Post-shipment Finance/working capital


    Forfaiting
    Buyers Credit
    Suppliers Credit
    Import Financing for raw materials
    Finance for setting up production facilities
    Financing R&D
    Financing cost of setting up JV/Warehouse overseas
    Financing quality related expenditure
    Financing export marketing related expenditure
    Insurance against default of the Importers

    20

    Exim Bank and SMEs


    JOINT INITIATIVES

    MOU was signed with ITC Geneva, to implement the Enterprise Management
    Development Services (EMDS) programme of ITC for supporting SMEs in their
    globalisation efforts. ITC and Exim Bank have jointly implemented a financial
    model to appraise loan proposals of SMEs. The model seeks to evaluate SMEs
    based on future potential as against past financials thus facilitating credit flow to
    deserving SMEs.

    MOC signed with Small Industries Development Bank of India (SIDBI) for
    cooperation in SME sector funding.

    21

    Exim Bank and SMEs

    EXIM BANK

    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.
    Exims 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 Exims 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

    22

    Grassroots Business Initiative

    EXIM BANK

    Linking rural industries to global market


    Creation of Export Capability in
    Grassroots Enterprises.
    Export

    Marketing

    Services

    on

    success fee basis


    Capacity building through training
    Poverty reduction through export
    linkage

    23

    Research & Analysis

    EXIM BANK

    Knowledge Building: Research Publications


    Research Studies on products, sectors, countries, macro economic issues
    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.

    24

    Promotional Activities

    EXIM BANK

    Exim Bank as Consultant


    Setting up an Exim Bank in Malaysia
    Establishing an Export Credit Guarantee Company in Zimbabwe
    Blueprint for establishing Exim Bank in Zimbabwe
    Feasibility study for setting up the Afrexim Bank
    Designing of Export Financing Programmes Turkey, South Africa
    Export Development Project : Ukraine, Vietnam, Armenia
    Mauritius Study on Projecting Mauritius as an Investment Hub for
    Indian Firms
    Feasibility study for establishment of an export credit and guarantee
    facility for Gulf Cooperation Council countries

    25

    Institutional Linkages
    EXIM BANK

    Multilateral Agencies

    Trade & Invt. Promotion Agencies

    Export Credit Agencies

    World Bank

    JETRO

    Exim Bank Romania

    ADB

    Netherlands Council for

    Czech Export Bank

    African Development
    Bank

    Trade Promotion
    Polish Agency for

    EBRD

    Foreign Investment

    MIGA

    Board of Investment of

    IFC
    UNCTAD

    Sri Lanka
    Board of Invt. Mauritius

    Hungarian Exim Bank


    JBIC
    US Exim Bank
    PT Bank Ekspor
    Indonesia
    Exim Bank of China

    26

    Exims Catalytic Role


    EXIM BANK

    Exim Bank: Promoting Indias integration into the global economy

    Introduced innovative products such as Export Marketing Finance, Financing


    Program for Software Exports, FCPC, Forfaiting.

    Set up Global Trade Finance Ltd. as a joint venture with IFC and West LB (now
    acquired by FIM Bank of Malta) in 2001 for providing export factoring facility to
    SMEs.

    Set up Global Procurement Consultants Ltd. in 1996 as a joint venture with Indian
    private & public sector enterprises to take up overseas assignments in procurement
    advisory services.

    Instrumental in creation of Asian Exim Banks Forum in 1996 and brought together 8
    other Exim Banks operating in Asia to promote intra-regional trade.

    Instrumental in creation of Global Network of Exim Banks and Development


    Financial Institutions (GNEXID) at Geneva under the auspices of UNCTAD to promote
    trade & development finance through cooperation and exchange of information.

    27

    Exim Bank:

    Partner in Globalisation

    EXIM BANK

    Final Products

    Technology

    EX
    PO
    RT

    Capital
    (Foreign Investment)
    Raw Materials

    Capital Goods
    Capital
    (Overseas Ventures)

    Capital Goods

    I
    M
    P
    O
    R

    Product
    Development
    Production
    Marketing

    VALU
    E

    N
    O
    TI
    I
    D
    D
    A

    Pre shipment
    Post shipment

    EXIM BANK

    THANK YOU
    Website

    www.eximbankindia.in
    www.eximbankagro.in

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