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abhishaik
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functions of exim banks - April 20th, 2007

ORGANISATION
Exim Bank is managed by a Board of Directors, which has representatives from the Government, Reserve Bank of India, Export Credit Guarantee Corporation (ECGC) of India, a financial institution, public sector banks, and the business community

BANK’S FUNCTIONS
The Bank's functions are segmented into several operating groups including:
Corporate Banking Group which handles a vairety of financing programmes for Export Oriented Units (EOUs), Importers, and overseas investment by Indian companies.
Project Finance / Trade Finance Group handles the entire range of export credit services such as supplier's credit, pre-shipment credit, buyer's credit, finance for export of projects & consultancy services, guarantees, forfaiting etc.
Lines of Credit Group Lines of Credit (LOC) is a financing mechanism that provides a safe mode of non-recourse financing option to Indian exporters, especially to SMEs, and serves as an effective market entry tool.
Agri Business Group, to spearhead the initiative to promote and support Agri-exports. The Group handles projects and export transactions in the agricultural sector for financing.
Small and Medium Enterprises Group to the specific financing requirements of export oriented SMEs. The group handles credit proposals from SMEs under various lending programmes of the Bank.
Export Services Group offers variety of advisory and value-added information services aimed at investment promotion
Fee based Export Marketing Services Bank offers assistance to Indian companies, to enable them establish their products in overseas markets.
Besides these, the Support Services groups, which include: Research & Planning, Corporate Finance, Loan Recovery, Internal Audit, Management Information Services, Information Technology, Legal, Human Resources Management and Corporate Affairs.

OBJECTIVES
“… for providing financial assistance to exporters and importers, and for functioning as the principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country’s international trade…”

“… shall act on business principles with due regard to public interest”

: The Export-Import Bank of India Act, 1981

EVOLVING VISION






BOARD OF DIRECTORS
Board of Directors consists of 16 members:
 Chairman and Managing Director
Shri. T. C. Venkat Subramanian
 5 Directors: Government of India
Shri. G. K. Pillai
Shri. N. Ravi
Dr. Ajay Dua
Dr. Ashok K. Lahiri
Shri. Amitabh Verma
 3 Directors: Scheduled Banks
 4 Directors: Professionals/Experts
Dr. Vinayshil Gautam
Smt. Kiran Mazumdar Shaw
Shri. S. P. Oswal
Shri. A. Vellayan
 1 Director nominated by RBI

 1 Director nominated by IDBI

 1 Director nominated by ECGC

All the Board of Directors are appointed by Government of India
OFFICES
Head Office
MUMBAI
Domestic Offices
• Ahmedabad, Bangalore, Chennai, Guwahati, Hyderabad, Kolkata, Mumbai, New Delhi, Pune.
Overseas Offices
• Dubai, Johannesburg, London, Singapore, Washington DC.

FINANCE AND SERVICES

INTRODUCTION
Exim Bank plays four-pronged role with regard to India's foreign trade: those of a coordintator, a source of finance, consultant and promoter.

Exim Bank is the Coordinator of the Working Group Mechanism for clearance of Project and Services Exports and Deferred Payment Exports (for amounts above a certain value currently US$ 100 million).
The Working Group comprises Exim Bank, Government of India representatives (Ministries of Finance, Commerce, External Affairs), Reserve Bank of India, Export Credit Guarantee Corporation of India Ltd. and commercial banks who are authorised foreign exchange dealers.
This inter-institutional Working Group accords clearance to contracts (at the post-award stage) sponsored by commercial bank or Exim Bank,and operates as a one-window mechanism for clearance of term export proposals. On its own, Exim Bank can now accord clearance to project export proposals up to US$ 100 million in value.

EXPORT CREDITS
Exim Bank offers the following Export Credit facilities, which can be availed of by Indian companies, commercial banks and overseas entities :
 For Indian Companies executing contracts overseas
 For commercial Banks
 Other Facilities for Indian Companies
 For Overseas Entities

For Indian Companies executing contracts overseas
Pre-shipment credit
Exim Bank's Pre-shipment Credit facility, in Indian Rupees and foreign currency, provides access to finance at the manufacturing stage - enabling exporters to purchase raw materials and other inputs.
Supplier's Credit
This facility enables Indian exporters to extend term credit to importers (overseas) of eligible goods at the post-shipment stage.
For Project Exporters
Indian project exporters incur Rupee expenditure while executing overseas project export contracts i.e. costs of mobilisation/acquisition of materials, personnel and equipment etc. Exim Bank's facility helps them meet these expenses.
For Exporters of Consultancy and Technological Services
Exim Bank offers a special credit facility to Indian exporters of consultancy and technology services, so that they can, in turn, extend term credit to overseas importers
Guarantee Facilities
Indian companies can avail of these to furnish requisite guarantees to facilitate execution of export contracts and import transactions.




For commercial Banks
Exim Bank offers Rediscounting Facility to commercial banks, enabling them to rediscount export bills of their SSI customers, with usance not exceeding 90 days.
We also offer Refinance of Supplier's Credit, enabling commercial banks to offer credit to Indian exporters of eligible goods, who in turn extend them credit over 180 days to importers overseas.
Other Facilities for Indian Companies
Indian companies executing contracts within India, but which are categorized as Deemed Exports in the Foreign Trade Policy of India or contracts secured under international competitive bidding or contracts under which payments are received in foreign currency, can avail of credit under our Finance for Deemed Exports facility, aimed at helping them meet cash flow deficits
For Overseas Entities
Buyer's Credit
Overseas buyers can avail of Buyer's Credit from Exim Bank, for import of eligible goods from India on deferred payment terms.
Eligible Goods
Capital goods, plant and machinery, industrial manufactures, consumer durables and any other items eligible for being exported under the 'Exim Policy' of the Government of India.

FINANCE FOR EXPORT ORIENTED UNITS
Term Finance
 Project Finance
 Equipment Finance
 Import of Technology & Related Services
 Domestic Acquisitions of businesses/companies/brands
 Export Product Development/ Research & Development
 General Corporate Finance
Working Capital Finance (For Exporting Companies)
 Funded
 Working Capital Term Loans [< 2 years]
 Long Term Working Capital [upto 5 years]
 Export Bills Discounting
 Export Packing Credit
 Cash Flow financing
 Non-Funded
 Letter of Credit Limits
 Guarantee Limits
Export Finance
 Pre-shipment Credit
 Post Shipment Credit
 Buyers' Credit
 Suppliers' Credit [including deferred payment credit]
 Bills Discounting
 Export Receivables Financing
 Warehousing Finance
 Export Lines of Credit (Non-recourse finance)
Working Capital Finance (For Non- Exporting Companies)
Bulk Import of Raw Material

Term Finance (For Non- Exporting Companies)
Import of Equipment

Equity Participation(In Indian Exporting Companies)
To part finance project expenditure(Project, inter alia, includes new project/ expansion/ acquisition of business/company/ brands/research & development)
Note:-
a). Exim Financing is available in Indian Rupees and in Foreign Currency
b). Term finance, except for long term working capital, is available for periods up to 10 years [in select cases 15 year finance can also be made available]
c). Interest: Fixed & Floating options [Benchmarks for floating rates - LIBOR/G-Sec/MIBOR]
d). Repayments: Amortizing/ Ballooning/ Bullet [As per cash flows]

SMALL & MEDIUM ENTERPRISES (SME) FINANCE
The importance of SME sector is well-recognized world over owing to its significant contribution in achieving various socio-economic objectives, such as employment generation, contribution to national output and exports, fostering new entrepreneurship and to provide depth to the industrial base of the economy. India has a vibrant SME sector that plays an important role in sustaining economic growth, increasing trade, generating employment and creating new entrepreneurship in India
Exim Bank of India has been endeavouring to provide a suite of services to its SME clients. These include providing business leads, handholding during the process of winning an export contract and thus assisting the generation of export business on success fee basis, countries/ sector information dissemination, capacity building in niche areas such as quality, safety, export marketing, etc. and financial advisory services such as loan syndication, etc.

DEBT RESTRUCTURING SCHEME
FOR (SMEs)
AGRI FINANCE
Exim Bank has a dedicated Agri Business Group to cater to the financing needs of export oriented companies dealing in agricultural products. Financial assistance is provided by way of term loans, pre-shipment/post-shipment credit, overseas buyers' credit, bulk import finance, guarantees etc. Term loans with varying maturities are provided for setting up processing facilities, expansion, modernization, purchase of equipment, import of equipment/technology, financing overseas joint ventures and acquisitions etc. The Bank has strong linkages with other stakeholders in agri sector such as Ministry of Food Processing Industries, GoI, NABARD, APEDA, Small Farmers' Agri-Business Consortium (SFAC), National Horticultural Board etc. Apart from financing, the Bank also provides a range of advisory services to agri exporters.
The Bank also publishes a number of Occasional Papers, Working Papers on export potential of various sub-sectors in agriculture and a bi-monthly publication in different languages on global scenario in agri-business and opportunities therein.
FILM FINANCE
The Bank has till date sanctioned loans more than Rs 33.15 crores for film production. The first three films financed by Exim Bank have been commercially successful across India and overseas markets.

PROJECT & SERVICE EXPORTS
 Exim Bank plays a pivotal role in promoting and financing project exports.
 Exports of projects and services, broadly categorised into:
 Civil engineering construction projects
 Turnkey projects
 Consultancy services
 Capital goods and transport vehicles
 Over the past two decades, increasing number of contracts have been secured by Indian companies in West Asia, North Africa, Sub Saharan Africa, South & South East Asia, CIS and Latin America.
 Such projects have supplemented the efforts of the host country governments in achieving their developmental objectives.

PROMOTING INVESTMENT
 Comprehensive assistance:
 Pre investment advisory services
 Finance through debt and equity
 Exim Bank finance available for:
 Greenfield projects
 Brownfield expansion
 Overseas acquisitions directly or through special purpose vehicles
 Exim Bank also undertakes direct equity participation in Indian ventures abroad to enhance credibility and acceptability of Indian ventures overseas
 Direct minority equity participation upto $10mn in overseas WOS / JV in FC
 Exim Bank also facilitates joint investments by Indian and overseas company in third country markets in addition to facilitating investments into India.

PROMOTIONAL ACTIVITIES
Exim Bank as Consultant
 Setting up an Exim Bank in Malaysia
 Establishing an Export Credit Guarantee Company in Zimbabwe
 Blueprint for establishing Exim Bank in Zimbabwe
 Feasibility study for setting up the Afriexim Bank
 Designing of Export Financing Programmes –Turkey, South Africa
 Export Development Project : Ukraine, Vietnam, Armenia
 Mauritius –Study on Projecting Mauritius as an Investment Hub for Indian Firms
INSTITUTIONAL LINKAGES

Multilateral Agencies
 World Bank
 Asian Development Bank
 African Development Bank
 European Bank for Reconstruction & Development
 Multilateral Investment Guarantee Agency (MIGA)
 International Finance Corporation (IFC)
 United Nations Conference on Trade and Development (UNCTAD)

Trade and Investment Promotion Agencies
 US Exim Bank
 China National Technical Import & Export Corporation
 BNP Paribas
 Israel Export & International Cooperation Institute
 Polish Agency for Foreign Investment (PAIZ)
 Board of Investment of Mauritius
 Netherlands Council for Trade Promotion
 Board of Investment of Sri Lanka

Export Credit Agencies
 Exim Bank of China
 Export-Import Bank of the Russian Federation
 Exim Bank of Romania
 PT Bank Ekspor Indonesia
 Croatian Bank for Reconstruction & Development ��Czech Export Bank
 Hungarian Exim Bank Ltd.
 Uzbekinvest–National Export-Import Insurance Company

EXIM’S CATALYTIC ROLE
Exim Bank is promoting India’s integration into the global economy through innovative programmes

 First institution to finance & promote computer software exports(1986)
 Infosys was one such company supported by Exim Bank

 Set up Global Trade Finance Ltd. as a joint venture with IFC and West LB (now acquired by FIM Bank of Malta) in 2001 for providing export factoring facility as an alternate trade financing instrument for SME sector.
 Set up Global Procurement Consultants Ltd. in 1996 as a joint venture with 10 Indian private and public sector enterprises to take up overseas assignments in procurement advisory services (has done World Bank funded assignments in 25 countries in Africa, CIS, Latin America).
 Launched the Asian Exim Banks Forum in 1996 and brought together 8 Exim Banks operating in Asia to promote intra-regional trade and reduce transaction cost. Bank signed Multilateral L/C confirmation facility with other Exim Banks.
 Introduced new trade financing instruments like pre-export financing, factoring & forfaiting. Bank offers structured financing solutions using financial derivatives
 Introduced programmes for financing R&D, export product development, quality certification, export oriented film financing etc.
 Operated successfully World Bank supported Export Marketing Finance Programme (EMF) and IFC supported Agency Credit Line programme to strengthen capabilities of SMEs.
 Awards:
 "Book of Honor Award” by US-based World Trade Centers Association in 2002
 “Export Development Award” by Association of Development Financing Institutions of Asia & Pacific (ADFIAP) in 2002, 2004, 2005 and 2006

GLOBAL NETWORK OF EXIM BANKS & DFIs
To facilitate South-South Trade & Investment Cooperation
 At the joint initiative of the Bank and UNCTAD, a Global Network of Exim Banks and Development Financial Institutions (GNEXID) was launched in March 2006 in Geneva at the hands of Dr. Supachai Panitchpakdi, Director General, UNCTAD.
 Global forum to promote trade and development finance through co-operation and exchange of information on best practices in trade and project finance
 G-NEXID members include Exim Bank of India, Afriexim Bank, Andean Development Corporation, Exim Bank of Malaysia, Exim Bank of Romania, PTA Bank, ECOWAS Bank, Exim Bank of Nigeria, SME Bank of Tunisia
 Annual meetings to deliberate upon measures to facilitate and foster long-term relations, share experience and strengthen financial co-operation to promote trade and investment
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Akansha Khare
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Re: functions of exim banks - September 24th, 2007

good peice of information
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shinjan
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Re: functions of exim banks - February 1st, 2009

Thanx for this great post..... great information
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Re: functions of exim banks - June 13th, 2015

Great post, really helpful and highly effective. Please keep posting it and help others. However there are numerous of banks but only few trusted and they rule the market.

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