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Annual Report 2007-08
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:: PRESS RELEASES |
Exim Bank Declares Annual Results For 2008-09
Mr. S. R. Rao, Executive Director, Mr. T. C. Venkat Subramanian, Chairman & Managing Director and Mr. N. Shankar, Executive Director, at the Press Conference of Export-Import Bank of India, held on Thursday, May 21, 2009, Mumbai
Bank registers impressive growth in
Loan Assets, Resources and Net Profit
Export-Import Bank of India (Exim Bank)'s Chairman & Managing Director, Shri T.C. Venkat Subramanian, announced the Bank's results for the year 2008-09, the 27th year of the Bank's operations, at a press conference in Mumbai on Thursday, May 21, 2009.
FINANCIAL PERFORMANCE
- Profit before tax amounted to Rs. 610 crore, and Net Profit (after tax) Rs. 477 crore.
- Capital Adequacy (Capital to Risk Assets Ratio) as on March 31, 2009 stood at 16.77%, as compared to 15.13% as on March 31, 2008.
BUSINESS PERFORMANCE
- Loan Assets increased by 18% moving upwards to Rs. 34,505 crore as on March 31, 2009 from Rs. 29,152 crore as on March 31, 2008. Loan approvals aggregated Rs. 33,628 crore during 2008-09, while disbursements aggregated Rs. 28,933 crore.
- Net NPAs decreased to 0.23% of net loan assets as on March 31, 2009, as compared to 0.29% in the previous year.
- During the year, the Bank extended 25 Lines of Credit (LOCs), aggregating US$ 783.5 mn, covering 20 countries to support export of projects, goods and services from India. 114 LOCs covering 94 countries in Africa, Asia, CIS, Europe and Latin America, with credit commitments aggregating US$ 3.75 billion are currently available for utilisation, while a number of prospective LOCs are at various stages of negotiation. The Bank lays special emphasis on extension of LOCs as it is an effective market entry mechanism especially for small and medium enterprises.
- Project export contracts supported during the year amounted to Rs. 26,709 crore and were secured by 25 companies in 29 countries.
- During the year, 16 corporates were sanctioned funded and non-funded assistance aggregating Rs. 2,338 crore for part financing their overseas investments in 11 countries. Exim Bank has so far provided finance to 241 ventures set up by over 193 companies in 63 countries including Austria, Canada, China, Ireland, Indonesia, Italy, Malaysia, Mauritius, Morocco, Netherlands, Oman, Romania, Singapore, Spain, South Africa, Sri Lanka, UAE, UK and USA.
- As on March 31, 2009, guarantees on book were at Rs. 3,540 crore.
RESOURCES/TREASURY
- During the year, the Bank received capital of Rs. 300 crore from the Government of India, increasing the paid-up capital to Rs. 1,400 crore as on March 31, 2009, as against authorised capital of Rs. 2,000 crore.
- During the year, the Bank raised borrowings of varying maturities aggregating to Rs. 17,650 crore comprising rupee resources of Rs. 11,708 crore and foreign currency resources of US$ 1.17 billion equivalent. Foreign currency resources of US$ 725 mn equivalent were raised through bilateral / club loans and US$ 447 mn by way of Buy-Sell swaps.
- As on March 31, 2009, outstanding Rupee borrowings including bonds/commercial paper/certificate of deposit amounted to Rs. 22,556 crore, and the Bank had a pool of foreign currency resources equivalent to US$ 3.46 billion. Total borrowings as on March 31, 2009 stood at Rs. 37,202 crore, as compared to Rs. 31,716 crore, a rise of 17%.
- The Bank's rupee term deposits increased from Rs. 284 crore as on March 31, 2008 to Rs. 950 crore as on March 31, 2009 with the number of depositors around 15,000.
- Market borrowings as on March 31, 2009 constituted 81% of the total resources of the Bank.
- The Bank's domestic debt instruments continued to enjoy the highest rating viz. 'AAA' rating from the rating agencies, CRISIL and ICRA.
- As on March 31, 2009 the Bank was rated Baa3 (stable) by Moody's, BBB- (negative) by Standard & Poor's, BBB- (stable) by Fitch Ratings and BBB+ (stable) by Japan Credit Rating Agency (JCRA). All the above ratings are of investment grade or above and are the same as the sovereign rating.
- During the year, Reserve Bank of India extended Refinance facility of Rs. 5,000 crore to Exim Bank. Reserve Bank of India also made available to the Bank Buy-Sell swap facility of US$ 1 billion to provide liquidity support for disbursements under Lines of Credit extended by the Bank at the behest of the Government of India to overseas financial institutions, regional development banks, sovereign governments and other entities overseas.
NEW INITIATIVES
Framework Loan Agreement with European Investment Bank
- The Bank, during the year, signed an agreement for a long term loan of Euro 150 mn with European Investment Bank (EIB), the European Union's major long term lending institution. EIB has extended a credit line to an Indian entity for the first time in the past 15 years. The purpose of the EIB loan to Exim Bank is for supporting projects that contribute to climate change mitigation and to EU presence in India through FDI, transfer of technology or know-how from Europe. The borrowings under this facility will enable the Bank to on-lend for import of equipment for projects including renewable energy projects, energy efficiency enhancement, as well as projects that would reduce greenhouse gases emission, clean environment, afforestation.
Rural Grassroots Business Initiatives
- The Bank continues its efforts to support globalisation of rural industries through its Grassroots Business Initiative. The programme builds upon the Bank's other support programmes and seeks to address the needs of relatively disadvantaged sections of society while creating expanded opportunities for traditional craftspersons and artisans, and rural entrepreneurs of the country. The Bank has consciously sought to establish, nurture and foster various institutional linkages. Towards this end, a Memorandum of Cooperation signed between the Bank and the Ministry of Panchayati Raj (MOPR) has been leveraged to enhance the export promotion activities of MOPR through the Rural Business Hub (RBH) initiative and is in line with Exim Bank's initiatives in supporting exports from rural India.
- The Bank, under this cooperation arrangement, has been designated as the gateway agency for implementing rural business hubs in Wayanad, Kerala; Nagapattinam, Tamil Nadu; and Bastar, Chhattisgarh. Towards this end, the Bank organised a worshop for rural craftpersons and artisans at Wayanad, Kerala, during March 2009, for dissemination of information about the concept of RBH and identification of potential products and services from the region. Further, in Nagapattinam District, Tamil Nadu, the Bank, in association with Periyar Maniammai University, has facilitated generation of employment for the rural poor under the RBH initiative in activities including dairy development and production of vermin compost.
- Under its rural initiatives, Bank has also sought to act as an enabling agency. Thus for instance, Bank facilitated Trust for Village Self Governance, Kuthambakkam (TVSG), a NGO near Chennai, to tie-up with ITC Ltd, Agarbatti Business Unit for rolling of incense sticks, Inca Hammock Ltd for netting of hammocks and Inca Radiant Ltd for assembling of filters. Bank also facilitated TVSG for setting up a rural BPO employing educated youth from the village for data entry/data capturing tasks for a leading e-publishing company. Bank has entered into formal cooperation arrangements with select broad-based NGOs in order to directly reach out to the artisans by helping in capacity building, quality improvement, market access, training.
Corporate Social Responsibility
- Exim Bank is supporting the Rugby Team of the Kalinga Institute of Social Sciences (KISS), Bhubaneshwar. The mission of KISS, which provides a combination of formal education with vocational education for more than 7000 tribal children of Orissa, is to bring a paradigm shift from mere schooling to innovative learning for the poorest tribal children from different parts of Orissa, with focus on formal and livelihood education and scope for all-round development. Exim Bank's support to the Rugby Team of KISS encompasses training facilities with associated infrastructure, participation in select domestic/ international tournaments. During August 2008, the Bank facilitated a visit of the KISS Rugby Team to Australia to play several exhibition matches with renowned local rugby clubs in Australia, and one of the players was awarded the "Sir Edward Weary Dunlop" Award by the Victorian Schools' Rugby Union for excellent performance and character during the tour. Further, the KISS rugby team won the under-16 All India Rugby Tournament held in Bhubaneswar during November 2008, while three under-19 KISS rugby players have been selected for the training camp being held in Pune for the Indian team probables for the 2010 Commonwealth Games to be held in New Delhi. The Bank at present is also supporting the girls' rugby team.
Innovative Programme for SMEs
- The Bank has entered into a cooperation arrangement with International Trade Centre (ITC), Geneva, for implementing a unique Enterprise Management Development Services (EMDS) program, which is an IT based solution provider to enable small enterprises to prepare business plans with international market in focus. This is a pioneering initiative for supporting SMEs and for providing term loans and export finance facilities to the identified units to help them in their globalisation efforts. The Bank has partnered ITC in implementing this project.
- The Bank has partnered the Commonwealth Secretariat in the 8th Commonwealth - India Small Business Competitiveness Development Programme held at Chennai and Puducherry during June 2008 on the theme "MSMEs as Agents of Economic Growth and Export Development". The objective of the programme is to undertake capacity development initiatives that promote economic development (increased employment, investment, trade and economic activity) in Commonwealth member states.
RESEARCH & PLANNING
- Nine Occasional Papers were published by the Bank during the year, namely, Financial Liberalisation and its Distributional Consequences; Indian Capital Goods Industry: A Sector Study; Indian Textiles and Clothing Industry in Global Context: Salient Features and Issues; Fair Trade: Fair Way of Enhancing Export Value; Indian Automotive Industry: At the Crossroads; SAARC: An Emerging Vibrant Trade Block; ECOWAS: A Study of India's Trade and Investment Potential; IBSA: Enhancing Economic Cooperation Across Continents; and CARICOM: Gateway to the Americas.
GLOBAL NETWORK OF EXIM BANKS AND DEVELOPMENT FINANCE INSTITUTIONS
- The Global Network of Exim Banks and Development Finance Institutions (G-NEXID), was set up in Geneva in March 2006 through the Bank's initiative, under the auspices of UNCTAD, has endeavoured to foster enhanced South-South trade and investment cooperation. 'Observer Status' in UNCTAD underscores support for the Forum, while acceptance of the vision of the Forum by developing countries can be assessed from the fact that the membership of the Forum has reached 24 by March 2009.
- To foster sharing of experiences on the challenges and opportunities being faced by SMEs in the current global scenario, G-NEXID, in collaboration with Banque De Financement Des Petites Et Moyennes Entreprises (BFPME), Tunisia, organised a seminar in Tunis during January 2009, wherein G-NEXID member organisations shared their views and experiences with the participants on issues including SME growth and challenges; SME lending in the global context; SME lending strategies, approach, risk management and best practices in SME lending.
ADFIAP DEVELOPMENT AWARD
- The Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) Development Award recognises and honours ADFIAP member institutions, which have assisted projects that have created a development impact in their respective countries. Awards are given to member institutions, which have implemented or enhanced outstanding and innovative development projects during the year.
- The Bank has been conferred the 2009 "Trade Development Award". The Award is in recognition of the Bank's "Overseas Investment Finance Programme" which seeks to catalyse trade creation through overseas investments with the underlying objective being to assist Indian firms to organise production optimally to serve regional or global markets. Under this programme, the Bank seeks to cover the entire cycle of Indian investment overseas including financing requirements of Indian Joint Ventures and Wholly Owned Subsidiaries, particularly of outward oriented small and medium enterprises, supplemented by advisory and support services in terms of provision of analytical information, partner identification, feasibility studies, review and due diligence.
COMMENCEMENT DAY ANNUAL LECTURE 2009
- Mr. Justin Yifu Lin, Chief Economist and Senior Vice President, The World Bank, delivered the Bank's Twenty Fourth Commencement Day Annual Lecture for the year 2009. Mr. Lin spoke on "Beyond Keynesian Economics: A Stimulus for Development". Dr. Dilip M. Nachane, Director, Indira Gandhi Institute of Development Research (IGIDR), Mumbai, presided over the function.
For further information, please contact
Mr. David Sinate,
General Manager,
Export-Import Bank of India,
Centre One Building, Floor 21,
World Trade Centre Complex, Cuffe Parade,
Mumbai 400 005.
Telephone: (022) : 22172829,
Fax::(022) 22182572 .
E-mail:cag@eximbankindia.in
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