IDBI Bank, Exim Bank to co-finance export-oriented companies

IDBI chairman says this collaboration will help IDBI expand its reach to MSME sector

IDBI Bank Ltd has entered into a Memorandum of Cooperation (MOC) with Exim Bank.

As per the MoC, IDBI Bank and Exim Bank would, inter alia, co-finance, co-arrange, syndicate rupee and foreign currency loans, jointly finance export-oriented projects in India, provide/avail refinance facility in Indian rupees and/or foreign currency for extending short term export credit and long term capex loans to eligible export-oriented companies, particularly in the SME sector.

IDBI Bank and Exim Bank would also co-operate in promotional activities, provide advisory services to assist each other’s clients and co-operate in training of each others’ staff members.

Speaking on the occasion, R M Malla, Chairman and Managing Director, IDBI Bank Ltd said, “This would be a win-win situation for both the organisations for meeting the credit requirements of export-oriented companies, particularly in the SME sector. IDBI Bank has a large portfolio of MSME sector units and is desirous of expanding its lending to this sector in view of the fact that the MSME sector is a key driver of Indian economy in terms of contribution to GDP, employment and exports. The Memorandum of co-operation with Exim Bank would help IDBI Bank in increasing its reach to MSME Sector”.

T C A Ranganathan, Chairman and Managing Director, Exim Bank said, “Exim Bank’s approach has been to provide a holistic solution within its mandate to the MSME sector rather than just being a purveyor of credit. To achieve this objective, Exim Bank has undertaken various capacity building initiatives through Grassroots Initiative and Development (GRID) and Export Marketing Services."