Export Import Bank of India, commonly known as Exim Bank, plans to raise up to a record $4 billion in financial year 2023-24 (FY24) for extending trade finance and term loans. The amount will depend on market conditions and Exim, which raised $3.47 billion in FY23, has a broad investor base and will look at different currencies. Harsha Bangari, managing director of the export credit agency, stated that the funds will be used to support the bank’s growth plans.
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Earlier this year, Exim Bank raised $1 billion through sustainability bonds in January 2023, under its environment social governance (ESG) framework. The bank later raised an additional $100 million through a second offering of the bond. The proceeds from the bonds will be used to support renewable energy, clean transportation, access to essential services and basic infrastructure, affordable housing, and water and waste management, according to Bangari.
Exim Bank’s net profit more than doubled to Rs 1,556 crore in FY23 from Rs 738 crore in FY22, while the total income increased to Rs 11,487 crore from Rs 8,363 crore in FY22. The bank’s net loan portfolio also increased by 17% YoY to Rs 1.34 trillion in FY23 from Rs 1.17 trillion in FY22. Loan growth is expected to be 12-15% in FY24, said Bangari. The non-fund portfolio, which includes guarantees, grew by 11.5% to Rs 17,000 crore at the end of March 2023.
Exim Bank’s gross non-performing assets (NPA) rose to 4.09% at the end of March 2023 from 3.56% at the end of March 2022. However, its net NPA increased to 0.71% in March 2023 from nil in March 2022. Exim Bank officials added that the bank had made provisions for exposure to Ghana in FY23, which is fully covered by a scheme run by Export Credit Guarantee Corporation, India.
Exim Bank’s capital adequacy ratio (CAR) stood at 25.43% in March 2023, compared to 30.49% a year ago. The bank’s present level is quite comfortable, and it will not look for capital raise in the current financial year. The bank will only consider capital raise when its CAR is about 20% for future growth.
Here are some key points about Exim Bank:
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