Uti Bank, Exim Bank Ink Alliance To Boost Exports

UTI Bank has tied up with the Export-Import Bank of India (Exim Bank) for co-financing exports and export-oriented companies.

The tie-up also seeks to provide value-added services to support the export efforts of small and medium-sized companies.

This is the second commercial bank with which Exim Bank has a tie-up. It had earlier tied up with the Bank of Maharashtra.

"UTI Bank will handle such commercial activities of the Exim Bank customers as letter of credit opening, negotiations etc which cannot be handled by Exim Bank as it is not a commercial bank. Also Exim Bank will offer advisory services to UTI Bank's customers to help smaller domestic corporates to enhance their international operations," UTI Bank's vice-president (international trade finance) S P Ghosh said.

For UTI Bank customers, this is an additional service which the bank will be offering, he added.

UTI Bank will also part-finance, the project finance requirements along with Exim Bank, Ghosh said. Both the banks are at present working on such a deal. Details of the project are under wraps. Modalities of revenue sharing between the two institutions have as yet not been fixed.

Exim Bank also gives lines of credit to various third world countries' so that the countries importers can import goods from India. UTI Bank is also looking at becoming the negotiating bank in these cases. Exim Bank has given lines of credit to countries such as Iran, Mexico, Brazil and some of the Commonwealth of Independent States countries.