Export and Import Bank of India (EXIM Bank) plans to raise over $3 billion in the current financial year to fund its lending operations.
The government-owned export credit agency raised about $2.62 billion in 2011-12. The total borrowings, including rupee resources, were Rs 27,630 crore. The actual borrowings in FY13 would depend on demand for funds from Indian business, Chairman and Managing Director TCA Ranganathan said. Its lending book grew 18 per cent to Rs 54,530 crore at the end of March 2012 from Rs 46,041 crore a year ago.
Ranganathan said this year, the bank estimates advances to grow 18 per cent. The last financial year was turbulent for Indian companies due to the financial crisis in Europe and slump in demand from foreign markets. The bank reported a net profit of Rs 675 crore, up from Rs 584 a year ago. It paid a dividend of Rs 205 crore to the government for 2011-12.
The Mumbai-based lender will set up a $500-million fund over the next five years to help micro, small and mid-level companies with long-term foreign-currency loans. It may start the fund with $100 million.
The technology and innovation enhancement and infrastructure development (TIEID), fund could be raised locally or overseas, its executive director Prabhakar Dalal said.
The institution will tie up with a few banks for deploying the fund as it doesn’t have a large presence in the market.
Its Gross Non-performing assets (NPAs) stood at 1.46 per cent. Its outstanding restructured assets stood at Rs 1,100 crore. It restructured standard assets of Rs 813 crore and Rs 58 crore of NPAs in the reporting year.
