unit iii role and functions of exim bank

7/31/2019 Unit III Role and Functions of EXIM Bank

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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 countrys 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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Leadership and Expertise in Indias Export Finance

Comprehensive Range ofProducts And Services

All Stages of the Export Business Cycle

1982-85

1986-94

ExportCredits

Exim Bank TODAY

Export CapabilityCreation

Product CentricApproach

Customer Centric

Approach

To develop commercially viablerelationships with a target set ofexternally oriented companies by

offering them a comprehensive range ofproducts and services, aimed at

enhancing their internationalisation

efforts

Evolving Vision


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Organisation

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)* OFFICESDomestic Offices: 9

Ahmedabad

Bangalore

ChennaiGuwahati

Hyderabad

Kolkata

New Delhi

Mumbai

Pune

Overseas Offices:6

London

Dakar

DurbanDubai

Singapore

Washington D.C.


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Operational PhilosophyInternational Trade

Financing Promoting Facilitating

Through

Variety of FinancingProgrammes

Value Added BusinessAdvisory Services

Research &Analysis

Catalyst for Financing

Projects Products Services


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Range of Products & Services

Presence Across All Stages of Business Cycle

INFORMATION

AdvisoryServices

KnowledgeBuilding

SUPPLEMENTS FINANCING PROGRAMMES

Value Based Services

Pre-Shipment

ExportMarketing

ExportProduction

ExportProduct

Development

ImportFinance

AdvisoryServices

InvestmentAbroad

Post-Shipment


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Financing Programmes

Financing Programmes (Various Currencies)

Export Credit Import Credit Loans for Exporting Units

Medium / Long Term

- Lines of Credit

- Buyers Credit

- Suppliers Credit

Short Term- Pre/Post Shipment

Credit

-Import Loan forcapital 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 equityinvestment

- Direct equity stake in Indian/Overseas ventures of exportingcompanies


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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 plansaimed at entry into developed country markets and term loans for supply side upgradation

Exim Banks assistance resulted in generation of significant exports to developed countrymarkets

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 Bankfunding

Over 300 companies supported in variety sectors:

KnittingNeedles

Polyester Ropes

Home Appliances

Herbal ProductsTextiles

Software

Castings

PharmaceuticalsJute Products

Printing Machinery

Auto Components

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Exim Banks extends export Lines of Credit (LOC) to overseas financialinstitutions, 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

Lines of Credit

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Competency as Collateral :Development of Loan.Com an IT tool kit which will enable SMEs to developbankable 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 globalisationefforts.

Learning from the programme to be transferred to other developingcountries; capacity creation and institution building in the global arena.

Exim Bank has already financed select firms by way of term loans and exportfinance facilities, using the tool kit

THIS INITIATIVE HAS BEEN LAUNCHED BY ITC FOR THE FIRST TIME WITHEXIM BANK AS A PARTNER.

Enterprise Management Development Services

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Agreement between Exim Bank and International Finance Corporation(IFC)

Envisages confirmation of Letters of Credit (L/Cs), Standby letters ofCredit, demand guarantees, promissory notes or bills of exchangereceived by Indian exporters

From 105 pre-approved banks in more than fifty countries of IFCs operation

Covers the risk of non-payment by Issuing Bank to Negotiating / Payingbanks

Global Trade Finance under IFC

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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 Exims overseasoffices and institutional partner network

Helps Indian SMEs in their export efforts by proactively assisting in locating overseas buyers/partners for theirproducts/services

No upfront fees, but operates on success-fee basis

Some of the sectors assisted include :

Export Marketing Services

Agricultural Equipments to Senegal

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

Setting up of oil mill on turnkey basis in Senegal (pipeline)

Seting up of Solar City in Senegal(pipeline)

Processed foods to Singapore & ItalyAgarbathis 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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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:

Seminars / Workshops

International trade & investment

Export marketing

Sector and country specificprogrammes

Quality

Packaging

Business opportunities in multilateralagencies funded projects

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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:

Research Publications

The Bank has also brought out a publication on Business Practices of SuccessfulIndian Exporters, outlining the internationalisation strategies adopted by successful

Indian firms including SMEsAgri Export Advantage , a bimonthly publication in English, Hindi and 10 regionallanguages

Sports GoodsIndian Handicrafts

ChemicalsLeather

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Agri Business GroupThe 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 promoteknowledge-based agriculture enterprise. www.eximbankagro.in

The Bank brings out a bimonthly 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 coveringfollowing products;

Honey, Mango pulp, mushrooms, gherkins,fresh & processed fruits & Vegetables

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http://www.eximbankagro.in/http://www.eximbankagro.in/


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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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World Bank

EBRD

ADB

African Development

Bank

MIGA

IFC

UNCTAD

Multilateral Agencies Trade & Invt. Promotion Agencies Export Credit Agencies

Board of Investment of

Mauritius

Netherlands Council for

Trade PromotionBoard of Investment of

Sri Lanka

Sharjah Chamber of

Commerce & Industry

Caribbean Association

of Industry & Commerce

Afrexim Bank

National Bank of Egypt

Czech Export

Bank(CEB)

Belvnesheconombank,

Belarus

Czech Export BankHungarian Exim Bank

Exim Bank of China

Institutional Linkages

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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

MarketingPre shipment

Post shipment

unit iii role and functions of exim bank

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