Growth In Exim Bank Sanctions And Disbursements Fall Drastically

The growth in sanctions and disbursements of the Export-Import Bank of India (Exim Bank) have fallen drastically, clearly signalling a sharp deceleration in export growth.

The overall sanctions for 1996-97 fell to Rs 1242 crore down from Rs 2466 crore in 1995-96. The fall in sanctions growth have been particularly sharp in short term loans which grew by a meagre Rs 86 crore in 1996-97 against Rs 1042 crore, the previous year. However, in the case of medium term loans the fall has been much less. Says Y B Desai, executive director, Exim Bank, "The fall in sanctions and disbursements can be attributed to the deceleration of export growth." Rupee finance growth has dropped to Rs 397 crore from Rs 1116 crore and the foreign currency loans fell to Rs 845 crore from Rs 1350 crore. Even the refinance of the Bank dropped to Rs 74 crore in 1996-97 from Rs 1034 crore in the previous year. Refinance is essentially drawn by commercial banks against the export credit advanced by them . With the dropping of refinance it is clear that even the export credit growth of commercial banks have not been good. Sanctions growth in foreign currency loans has shown a mixed trend. Short term loans in

 

this category has fallen from Rs 977 crore to Rs 52 crore.

On the disbursements front, short term loans have fallen to Rs 96 crore from Rs 948 crore but in the case of medium term loans the fall in growth has been marginal at Rs 1161 crore against Rs 1182 crore. Disbursements of direct finance has, however, shown a marginal increase to Rs 1192 crore from Rs 1158 crore, but refinance has fallen to Rs 65 crore from Rs 972 crore.

Disbursements, in the case of short term foreign currency loans, have fallen to Rs 26 crore from Rs 875 crore but medium term loans in the same category increased to Rs 686 crore from Rs 249 crore.

The net profit of the Exim Bank for the year-ended March 1997 on account of the general fund amounted to Rs 151.6 crore compared to the Rs 110 crore the previous year, an increase of 38 per cent. Loan outstandings went up 18 per cent, moving upwards to Rs 3451 crore on March 31, 1997 from Rs 2930 crore as on March 31, 1996.

Exim Bank will pay Rs 31 crore as dividend to the government as compared to Rs 20 crore in the previous year. Net worth of the bank increased to Rs 1044 crore.