Business Standard

Exim Bank posts Rs 82 cr PAT in FY'19


Press Trust of India Mumbai
Export-Import Bank of India (Exim Bank) Thursday registered a profit after tax of Rs 82 crore for 2018-19 financial year.
It reported a loss of Rs 2,924 crore in 2017-18.
The export finance institution also witnessed reduction in bad loans during the year.
Managing Director David Rasquinha said 2017-18 was a clean-up year wherein the bank did a significant tightening of the balance sheet and lending norms. It did an aggressive provisioning which led to a loss in that fiscal.
"The picture has turned around. In 2018-19, even after making all the provisions required by the RBI or additional precautionary provisions, we have registered a profit after tax of Rs 82 crore," Rasquinha told reporters

Its gross non performing assets reduced to Rs 11,678 crore in 2018-19 from Rs 11,976 crore a year ago. Net NPAs stood at Rs 2,288 crore as compared to Rs 4,028 crore by the end of 2017-18.
Provision coverage ratio improved to 85 per cent from 71 per cent in 2017-18.
"The bulk of pain of non-performing assets is already been taken by the bank with the 85 per cent provision coverage ratio," Rasquinha said.
He added that out of Rs 11,678 crore NPAs, more than Rs 9,200 crore are either within the IBC process or have been referred and pending for admission at the NCLT.
In 2019-20, the bank expects recovery of around Rs 3,000-3,500 crore from stressed accounts which are facing resolution under Insolvency and Bankruptcy Code (IBC).
Its loan portfolio fell to Rs 93,617 crore in 2018-19 from Rs 1,07,532 crore in the previous fiscal.
"The loan portfolio degrew in the last one year because we did reorientation of our business. We significantly reduced our refinance to banks during the year, focused more on the direct finance to Indian exporters, overseas importers, sovereign governments," he said.
The non-fund portfolio increased to Rs 14,096 crore in 2018-19 from Rs 13,240 crore in the previous year.
He said, in the current financial year, loans and guarantees are likely to grow at 10 per cent and profitability to grow over 25 per cent.
During the year, the bank raised foreign currency resources aggregating USD 1.22 billion and is looking to raise close to USD 3 billion from loans and bond markets in 2019-20.
In 2018-19, the bank extended 18 line of credits amounting to USD 2.31 billion.

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First Published: May 30 2019 | 5:05 PM IST

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