Rupee depreciation raising cost of funds: Exim Bank

Bonds market has frozen, says bank Chairman and MD, T C A Ranganathan

Depreciation of the rupee against the US dollar is raising the cost of funds for Exim Bank, its Chairman and Managing Director T C A Ranganathan said today.

"The depreciation of the rupee is not affecting us directly as 60% of the bank's balance sheet is dollar denominated," Ranganathan said at the Ficci Banking Conclave here.

He said "it is indirectly affecting us as cost of raising funds has risen. The bonds market has frozen. But at the moment, liquidity position of Exim Bank is OK."

On project exports, he said that fresh contracts in the Middle East had come down, but companies had been overcompensated by additional contracts from Asia and Africa.

Ranganathan said that the environment both inside and outside was witnessing a lot of volatility.

"But what it looks like that there is slight easing in Europe. African and Latin American nations are also doing well," he said.