India Exim Bank’s PAT jumps more than 100% in FY 2020-21
India Exim Bank’s Managing Director, Mr. David Rasquinha, and Deputy Managing Directors, Ms. Harsha Bangari and Mr. N. Ramesh, announced the Bank’s results for the financial year 2020-21 through a virtual press conference in Mumbai on Friday, May 21, 2021.
Key highlights of the Bank’s performance during 2020-21 are as under:
FINANCIAL PERFORMANCE
BUSINESS PERFORMANCE
• Lines of Credit (LOCs): During FY 2020-21, Exim Bank on behalf of the GOI extended 20 LOCs, aggregating US$ 2.23 billion, to support export of projects, goods, and services from India. Exim Bank has built up a portfolio of 272 GOI-LOCs with credit commitments aggregating US$ 26.76 billion which are at various stages of implementation. With ever expanding reach, the LOCs have gained momentum in stimulating economic growth across 64 countries in Africa, Asia, Latin America, Oceania and the CIS region.
• Project Exports: During FY 2020-21, Exim Bank has supported 38 project export contracts valued at US$ 3.6 billion (approx.) under its commercial window. Some major project exports contracts supported by the Bank during the year include power transmission project in Bangladesh; a solar project and installation of electrical equipment in Australia; construction of sub-stations in Thailand.
• Buyers’ Credit under National Export Insurance Account (BC-NEIA): During FY 2020-21, Exim Bank sanctioned an amount of US$ 2.88 billion, for 32 export projects, valued at US$ 3.15 billion. The Bank has also given in-principal commitments for US$ 1.58 billion supporting 16 projects valued at US$ 1.78 billion, under BC-NEIA, at the request of several leading Indian project exporters.
• Overseas Investment Finance: During FY 2020-21, five corporates were sanctioned funded and non-funded assistance aggregating ₹ 7.21 billion for part financing their overseas investments in 2 countries. So far, India Exim Bank has provided finance to 637 ventures set up by 476 companies in 78 countries.
RESOURCES & TREASURY
• During FY 2020-21, Exim Bank raised FC resources aggregating US$ 2.03 billion equivalent, through a variety of instruments. In January 2021, the Bank raised US$ 1 billion for a 10-year tenor at a coupon of 2.25 per cent p.a. in the 144A/Reg-S format. The transaction marked the lowest coupon from any Indian issuer for a 10-year US$ issuance. The issue attracted a total order book in excess of US$ 3.5 billion at close, thereby achieving more than 3.5 times subscription from high-quality investors.
• During the year, the Bank has also raised funds through bilateral loans from Banks / Financial Institutions. So far, the Bank has raised FC resources in diverse currencies including Australian Dollars, Euros, Great Britain Pounds, Japanese Yen, Mexican Peso, Offshore Renminbi, Singapore Dollars, South African Rand, Swiss Francs, Turkish Lira and United States Dollars.
• During the year, the Bank received capital of `13 billion from the Government of India by way of budget allocation. As on March 31, 2021, the Bank’s total resources including paid-up capital of `151.59 billion and reserves of `24.26 billion aggregated `1,272.02 billion.
• Rating: The Bank is rated Baa3 (Negative) by Moody’s, BBB- (Stable) by S&P Global Ratings, BBB- (Negative) by Fitch Ratings and BBB+ (Stable) by Japan Credit Rating Agency. All the above ratings are of investment grade or above and are the same as the sovereign rating.
NEW INITIATIVE
• Exim Bank operationalised a new development initiative christened as ‘Ubharte Sitaare Program’. The Programme identifies Indian companies that are future champions with good export potential. The initiative was announced by the Hon’ble Finance Minister in the Union Budget speech on February 01, 2020. During FY 2020-21, Exim Bank has sanctioned support to five companies amounting to ₹ 96.18 crore. These sanctions were spread across sectors including defence drones, agriculture technology, pharmaceuticals, and plastic recycling. Amidst the pandemic, the Bank has been able to operationalise various activities under the programme including stakeholder consultations with banks, industry associations and leading academia such as IITs, IIMs, IISc Bangalore for developing a collaborative approach for identification of eligible companies, and guidance for technical advisory services. A pipeline of more than 100 companies has been developed across various sectors.
EXPORT FACILITATION
• Exim Bank conducted 22 seminars/workshops for exporters, with themes broadly classified into export capability creation, business opportunities, industry, country & region focus, and export potential of Indian states. Due to the pandemic, most of these seminars were conducted on virtual platforms.
• Exim Bank, under its grassroots initiatives, has been supporting and assisting rural artisans, craftsmen and farmers to widen their domestic as well as international presence by organizing design, skill-building and training workshops. Some of these programmes organised during the year were for tribal artisans of Anwesha Tribal Arts and Crafts in Bhubaneswar; weavers of Urmul Marusthali Bunkar Vikas Samiti in Phalodi (Rajasthan); and grape farmers in Nashik.
• Exim Bank assists Indian firms in their globalization efforts by locating overseas distributors / buyers / partners for their products and services, on a success fee basis. During FY 2020-21, the Bank signed mandates from four companies, engaged in oil extraction, customized plastic parts, fabrics and auto components.
ADVISORY AND CONSULTANCY SERVICES
• Exim Bank and the United Nations Development Programme (UNDP) are jointly implementing a project on 'Capacity Building of MSMEs in North East India for Export Competitiveness'. The initiative aims at creating stronger MSMEs in the North East region to boost exports. Some of the key initiatives under this project during FY 2020-21 include conducting studies to identify the issues faced by MSMEs due to COVID-19, organizing buyer-seller meetings, capacity building and technical training programmes in organic farming, textiles, handloom, and handicraft sectors, setting up knowledge platform under “AgroLoomCraft” database for entrepreneurs to understand the benefits offered by various government departments, etc. A notable example of the capacity building programmes is the skill upgradation programme organized for weavers of Aizawl, especially for producing PPE kits, which are being supplied to various government organizations in the region.
• Exim Bank has been engaging with various state governments to evaluate export performance and making strategies for development of their trade competitiveness. In FY 2020-21, the Bank undertook studies for the States of Karnataka and Kerala. The Bank also provided inputs to the Niti Aayog for the preparation of the Export Preparedness Index, which was released in August 2020. The Index examines export preparedness and performance of Indian states and intends to identify challenges and encourages a facilitative regulatory framework at the state level.
COVID-19 RELIEF & OTHER INITIATIVES
• In June 2020, the Corporate Social Responsibility (CSR) policy for Exim Bank was implemented. During FY 2020-21, 12 projects / programmes in six states and one UT were sanctioned in the areas of Covid-19 relief, education, healthcare & sanitation, and skill development & livelihood activities.
• CSR activities undertaken for COVID-19 relief during FY 2020-21 include supply of ICU ventilator in sub-district hospital in Sangli (Maharashtra); distribution of PPE kits, N95 masks, disposable gloves, gowns, sanitizers and face shields to health workers in various hospitals in Mumbai; distribution of basic hygiene kits to 100 families for 3 months in Raigad (Maharashtra); distribution of face masks to MCGM’s health workers; and distribution of immunity boosting honey from a social enterprise, Under The Mango Tree, to the police women of Mumbai Police.
• Some of the notable projects being implemented under CSR include support for hospitals in Barpeta and Ranchi; medical equipment for Government District Hospital in Sirohi (Rajasthan); enhanced facilities for medical care to neonates from the tribal communities of Dahanu and Talasari areas of Palghar (Maharashtra); construction of all-weather toilets and common facility in Ladakh; construction of additional block in Mahatma Gandhi High School, in Sriperumbudur; supporting the education of 41 girl children of ex-servicemen for one year; and training of disabled persons in the fields of art and craft across five cities in India.
• The Bank in association with the Tata Memorial Hospital organised blood donation drives in Mumbai. A tree plantation drive by the officers of the Bank was organised near Pune during FY 2020-21.
For more information, please contact: Mr. David Sinate, Chief General Manager, Export-Import Bank of India, Centre One Building, Floor 21, World Trade Centre Complex, Cuffe Parade, Mumbai 400005; Phone +91-22-22172829; E-mail: ccg@eximbankindia.in.
