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Export-Import Bank of India
Role and Functions
July 15, 2010
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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)
Exim Bank of India
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Management
Chairman and Managing Director
5 Directors: Government of India
3 Directors: Scheduled Banks
4 Directors : Professionals/Experts
1 Director nominated by RBI
1 Director nominated by IDBI
1 Director nominated by ECGC
Appointedby
Govt. of India
* As per Exim Bank Act
BOARD OF DIRECTORS (16)* OFFICES
Domestic Offices: 10
Ahmedabad
Bangalore
Chandigarh
Chennai
Guwahati
Hyderabad
Kolkata
New Delhi
Mumbai
Pune
Overseas Offices:7
Addis Ababa
Dakar
Dubai
Durban
London
Singapore
Washington D.C.
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Operational Philosophy
International Trade
Financing Promoting Facilitating
Through
Variety of Financing Programmes
Value Added Business Advisory Services
Research and 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
- Lines of Credit
- Buyer’s Credit
- Supplier’s Credit
Short Term
- Pre/Post Shipment Credit
- Import Loan for
capital goods
- Bulk Import Loan for
Raw Materials
- 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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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 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. Total Lines – 136, Countries – 94 and Amt. USD 4.49 bn.
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
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.
Promoting Project Exports
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 – 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
EMS & Skill Upgradation for SMEs
Exim Bank and SMEs
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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
Clusters of Excellence
Cluster Approach
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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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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.
Research & Analysis
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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 :
Export Marketing Services
Capacity Building for SMEs
Ayurvedic Products to Hungary
Tiger Prawns to a leading restaurant chain in S.Africa
Cotton fabrics to S. Africa
Incense sticks to Singapore, S. Africa, USA
Processed foods to Singapore & Italy
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
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.
GLOBAL TRADE FINANCE PROGRAM (GTFP))
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World Bank
ADB
African Development
Bank
EBRD
MIGA
IFC
UNCTAD
JETRO
Netherlands Council for
Trade Promotion
Polish Agency for
Foreign Investment
Board of Investment of
Sri Lanka
Board of Invt. Mauritius
Exim Bank Romania
Czech Export Bank
Hungarian Exim Bank
JBIC
US Exim Bank
PT Bank Ekspor
Indonesia
Exim Bank of China
Institutional Linkages
Multilateral Agencies Trade & Invt. Promotion Agencies Export Credit Agencies
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Exim Bank: Partner in Globalisation
Technology
Capital
(Foreign Investment)
Raw Materials
Capital Goods
Final Products
Capital Goods
Capital
(Overseas Ventures)
Product
Development
Production
Marketing
Pre shipment
Post shipmentVALUEVALUE ADDITIO
N
ADDITION
EXPORT
EXPORT
MMII
TTRR
OOPP
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Export & Import Statistic of NER: 2009-10
(Rs. Crs)Division Export ImportShillong 759.76 0.37Dhubri 132.27 13.05Guwahati 465.94 0.98Agartala 0.33 167.84Karimganj 33.96 46.4Imphal 2.15 8.31TOTAL 1394.41 236.95Source: Commissioner of Customs, NER, 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 Customs, 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 Customs, 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: [email protected]
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
THANK YOU