Export lender Exim Bank to raise up to record $4 billion in FY24

Export lender Exim Bank plans to raise up to record $4 billion in financial year 2023-24 (FY24) for extending trade finance and term loans.

Harsha Bangari, managing director of the export credit agency, said the fundraising would depend on market conditions. Exim, which raised $3.47 billion in FY23, has a broad investor base and would look at different currencies.

Exim Bank raised $1 billion through sustainability bond in Jan­uary 2023, under its environm­ent social governa­nce (ESG) fra­me­work. It later raised $100 million via a second offering of the bond. Proceeds from the bonds will be used for renewable energy, clean transportation, access to essential services and basic infrastructure, affordable ho­u­­sing, and water and waste management, Bangari said.

Exim’s net profit more than doubled to Rs 1,556 crore in FY23 from Rs 738 crore in FY22. Total income increased to Rs 11,487 crore in FY23 from Rs 8,363 crore in FY22. Net loan portfolio increased by 17 per cent year-on-year (YoY) to Rs 1.34 trillion in FY23 from Rs 1.17 trillion in FY22. Loan gr­o­wth is expected to be 12-15 per cent in FY24, said Ban­gari. The non-fund portfolio, which includes guarantees, grew by 11.5 per cent to Rs 17,000 crore at the end of March 2023. Exim’s gross non-performing assets (NPA) rose to 4.09 per cent at the end of March 2023 from 3.56 per cent at the end of March 2022. 

Net NPA increased to 0.71 per cent in March 2023 from nil in March 2022. The bank in FY23 made a provision for exposure to Ghana. This is fully covered by a scheme run by Export Credit Guarantee Corporation, In­d­ia EXIM bank officials added.

The bank’s capital adequacy ratio (CAR) stood at 25.43 per cent in March 2023 as against 30.49 per cent a year ago. The present level is quite comfortable and the bank would not look for capital raise in the current financial year. It would look at capital raise when it CAR is about 20 per cent for future growth.