finanlpptexportfinance-100930143931

7/29/2019 finanlpptexportfinance-100930143931

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Presentation on Six

Weeks VocationalTraining at

AXIS BANK(Forex Department)

Presented By-

Aakriti Gupta Arora Gaurav Singh

94972238253 94972238262


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INDIAN BANKING SYSTEM


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INTRODUCTION TO AXIS BANK

Promoted in 1994 by

LIC

GIC

UTI

NIICNIC

OIC

UI


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CURRENT SCENARIO

Earlier Axis Bank was known

as UTI.

It has its registered office in

Ahemdabad and central

office at Mumbai.

VISION 2015: To be the

preferred financial solutions

provider, excelling in

customer delivery throughinsight, empowered

employees and smart use of

technology.

4055

ATMS

1000

Branches

Corporate

tie ups

Third

partyalliance.


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MEMBERS OF THE BOARD

Dr. Adarshkishore

ShikhaSharma

MMAggarwal

JR Verma

RH Patil

SBMathur

RBL Vaish

MVSubhia

Rama B


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VARIOUS DEPARTMENTS AT AXIS

BANK Personal Banking

Department.

Priority Banking.

NRI Banking

Department.

Securities. Insurance.

Investment Solutions.

Forex Department.

Business Banking

Department.

Corporate Banking

Department.

Credit LaunderingDepartment.


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AXIS BANK: FOREX BRANCHES IN

LUDHIANA

Branch Name-The Mall

Branch Id-042

Address-Lower Ground

Floor, Boulevard, PlotNo.105, Mall Road,

Ludhiana 141001,

Punjab, India

MICR Code-141211002 SWIFT Code -

AXISINBB042

Branch Name-Miller

Ganj

Branch- Id 324

Address-B-15-179/1,Nirankari Kucha No. 4,

Between Vishwakarma

Chowk and Dholewal

Chowk, Miller Ganj

Punjab, India

MICR Code-141211006

SWIFT -AXISINBB324


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FUNCTIONS OF FOREX DEPARTMENT, MALL

ROAD, LUDHIANA

Transfer through SWIFT

Demand Drafts andCheques

Spot Contracts.

Forward Contracts.

Currency Options.

Forward RateAgreement.

Currency Swaps


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ORGANIZATIONAL CHART


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SWOT ANALYSIS


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INTRODUCTION TO EXPORT FINANCE

It means selling goods abroad. International market

being a very wide market, huge quantity of goods

can be sold in the form of exports.

Success or failure of any export order mainly

depends upon the finance available to execute the

order.


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CONCEPT OF EXPORT FINANCE

The exporter may require short term, medium

term or long term finance depending upon the

types of goods to be exported and the terms

of statement offered to overseas buyer.

Export finance is short-term working capital

finance allowed to an exporter. Finance and

credit are available not only to help exportproduction but also to sell to overseas

customers on credit.


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PURPOSE OF EXPORT FINANCE

An exporter may avail financial assistance from any

bank, which considers the ensuing factors:

Availability of the funds at the required time to the

exporter.

Affordability of the cost of funds.


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TYPES OF EXPORT FINANCE

Export finance is classified into two types viz.

Pre-shipment finance.(180 days-270 days)

Post-shipment finance. (180 days)


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SOME CONCEPTS OF EXPORT

FINANCE Forfeiting - A mechanism of financing exports.

By discounting export receivables.

Evidenced by bills of exchange or promissory notes. Without recourse to the seller (viz. exporter)

On a fixed rate basis (discount)

Up to 100 percent of the contract value.


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FACTORING- A contract by which the factor is toprovide at least two of the services, (finance, the

maintenance of accounts, the collection of receivables

and protection against credit risks) and the supplier is

to assigned to the factor on a continuing basis by way

of sale or security, receivables arising from the sale of

goods or supply of services.

In simple words, factoring turns your receivable into

cash today, instead of waiting to be paid at a futuredate.


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MAJOR INSTITUTIONS INVOLVED

IN EXPORT FINANCE Reserve Bank of India (RBI)- The RBI with its head

quarters in Mumbai and several regional offices is the central

banks of our country to authorize extend and regulate export

credit and transaction including foreign exchange affairs. RBIdoes not directly provide export finance to the exporters, but

it adopts policies and initiates measures to encourage

commercial banks and other financial institutions to provide

liberal export finance. Two Departments- i)Industrial and Credit Department

ii)Exchange Control Department


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Exim Bank- Set up by an Act of Parliament in September

1981.

Wholly owned by the Government of India.

Exim is the principal financial institution in the country for

coordinating working of institutions engaged in financing

exports and imports.

Offices

Head office Mumbai

A network of 13 offices in India and Overseas.

Domestic Offices - Ahmedabad, Bangalore, Chennai,Hyderabad, Kolkata, Mumbai, New Delhi, Pune.

Overseas Offices - Budapest, Johannesburg, Milan, Singapore,

Washington DC.


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Functions of EXIM Bank

From financing Facilitating Indiaforeign trade and promoting Foreigntrade.

To creating export capability byarranging competitive financing atvarious stages of export cycle.

Providing Consultancy and high range ofservices to exporters.


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ECGC- EXPORT CREDIT GUARANTEE

CORPORATION OF INDIA LTD.

ECGC is a company wholly owned by the GOI. It

functions under the administrative control of the

Ministry of Commerce and is managed by a Board of

Directors representing government, Banking,Insurance, Trade and Industry.

OBJECTIVES OF ECGC:

To protect the exporters against credit risks, i.e. non-

repayment by buyers

To protect the banks against losses due to non-repayment of

loans by exporters.


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PRE-SHIPMENT FINANCE-Pre-shipment is also

referred as packing credit. It is working

capital finance provided by commercial banks

to the exporter prior to shipment of goods.The finance required to meet various

expenses before shipment of goods is called

pre-shipment finance or packing credit.


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IMPORTANCE OF FINANCE AT PRE-SHIPMENT STAGE:

To purchase raw material, and other inputs to

manufacture goods.

To assemble the goods in the case of merchant

exporters.

To store the goods in suitable warehouses till the

goods are shipped.

To pay for packing, marking and labelling of goods.


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SOME SCHEMES IN PRE-SHIPMENT STAGE OF FINANCE

I. DEFERRED CREDIT-Consumer goods are normally

sold on short term credit, normally for a period up

to 180 days. However, there are cases, especially, in

the case of export of capital goods andtechnological services; the credit period may

extend beyond 180 days. Such exports were longer

credit terms (beyond 180 days) is allowed by the

exporter is called as deferred credit or deferredpayment terms.


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REDISCOUNTING OF EXPORT BILLS ABROAD

(EBRD) SCHEME-This facility will be an additional

window available to exporter along with the exiting

rupee financing schemes to an exporter at postshipment stage. This facility will be available in all

convertible currencies. This scheme will cover

export bills upto 180 days from the date of

shipment (inclusive of normal transit period andgrace period) .


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POST-SHIPMENT FINANCE

MEANING:

Post shipment finance is provided to meet working

capital requirements after the actual shipment of

goods. It bridges the financial gap between the dateof shipment and actual receipt of payment from

overseas buyer thereof. Whereas the finance

provided after shipment of goods is called post-

shipment finance.


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Importance of Post Shipment

Finance. To pay to agents/distributors and others for their

services.

To pay for publicity and advertising in the over seas

markets. To pay for port authorities, customs and shipping

agents charges.

To pay towards export duty or tax, if any.

To pay towards ECGC premium.


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Methods of Post Shipment

Finance. Export bills negotiated under L/C

Purchase of export bills drawn

under confirmed contracts

Advance against Undrawn

Balance of Bills:

Advance against Deemed Exports

Advance against bills under

collection


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Packing Credit for Rupee Expenditure

for project export contracts PACKING CREDIT FOR RUPEE EXPENDITURE FOR PROJECT EXPORT

CONTRACTS (FREPEC).

WHAT IS FREPEC PROGRAM?

This program seeks to Finance Rupee Expenditure for

Project Export Contracts, incurred by Indian companies.


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What is the purpose of this Credit?

To enable Indian project exporters to meet Rupee

expenditure incurred/required to be incurred for executionof overseas project export contracts such as for

acquisition/purchase/acquisition of materials and

equipment, acquisition of personnel, payments to be

made in India to staff, sub-contractors, consultants and to

meet project related overheads in Indian Rupees.


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Foriegn Currency Preshipment Credit

The FCPC is available to exporting companies as well as

commercial banks for lending to the former.

It is an additional window to rupee packing credit scheme &

available to cover both the domestic i.e. indigenous &

imported inputs. The exporter has two options to avail him of

export finance.

To avail pre-shipment credit in rupees & then the post

shipment credit either in rupees or in foreign currency

denominated credit or discounting /rediscounting of exportbills.


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Title- Comparative Analysis onExport finance execution by public

and private banks in respect toSME exporters in Ludhiana zone.


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Objectives of Research

To compare export finance execution between public and

private banks in respect to SME exporters in Ludhiana

zone on the basis of various parameters ie maximum

disbursement made to product or industry,centralized and

decentralized system of loan scantioning,in terms of Base

and bench prime lending rate,subvention rates,Turn around

time,Bill realization charges.


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To compare among public and private banks that which

sector of banks encourages new exporters in terms of fund

based assistance.

To know that which industry or product will be financed

aggressively by Public and private banks respectively to

SME exporters in Ludhiana.


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Research Methodology

Objectivesof the study

ResearchDesign

SampleDesign

Datacollection

DataAnalysis


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Research Design

Research design specifies the methods and procedures

for conducting a particular study.

Research design is broadly classified into three

types as: Exploratory Research Design.

Descriptive Research Design.

Causal Research Design. Our design is Descriptive Research Design.


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SAMPLING DESIGN A Sample Design is a definite plan for obtaining a sample from a given

population. It refers to the technique to the procedure adopted in selectingitems for the sampling designs are as below:

SAMPLE SIZE:The substantial portions of the target Banks in

Ludhiana that are sampled to achieve reliable result are 20Banks.

The cost and time limitation compelled us to select 20

respondents as sample size .


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SAMPLING METHOD:

In this research project, we are using

Convenience sampling method.

SAMPLE SIZE

20 banks.

SAMPLE TYPEAREA SAMPLING

Sample Area: Ludhiana


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SAMPLING TECHNIQUE

We have taken the Statistical tool of percentage method to

analysis and interpretation of the collected data.

Convenience Sampling


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Collection of Data

DATA COLLECTION

The study was conducted by the means of

personal interview with respondents and the

information given by them were directly

recorded on questionnaire.

COLLECTION TECHNIQUE

Questionnaire method is used in collection

the data.


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Banks Chosen For comparison PUBLIC BANKS

State Bank of India.

Bank Of India.

Indian Bank.

Syndicate Bank. Corporation Bank.

Canara Bank.

Central Bank of India.

Punjab National Bank.

SIDBI

Vijaya Bank

PRIVATE BANKS

Icici Bank.

HDFC Bank.

Standard Charted Bank.

Axis Bank. Catholic Serian Bank.

Fedral Bank.

City Bank.

South Indian Bank.

IndusInd Bank.

Yes Bank.


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Data Analysis Public BanksMAXIMUM DISBURSEMENT MADE TO LUDHIANA

SME EXPORTERS BY PUBLIC BANKs IN Ludhiana. Interpretation 60 % of public banks do not disburse

more than 50 crores annually to Ludhiana

SME export houses. These include

Vijaya Bank.

Indian Bank.

SIDBI.

Syndicate Bank.

Corporation Bank.

Central Bank.

While 30% of public banks Disburse more

than 150 crore Rupees which include


Bank of India.

Canara Bank.

While 10% Banks make disbursement of

Rs. 50-100 crores that is Punjab national

bank.


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Sectorwise Maximum

Disbursement.Interpretation

30% of public banks in Ludhiana Disburse

maximum to Ludhiana Bi-cycle Sme

exporters. These include


Bank of India.

Indian Bank.

Whereas 40% of finance is disbursed to

Hosiery SME exporters. These include

Canara Bank.

Central Bank.

Syndicate Bank.

Vijaya Bank.

While 20% of the Banks go for

disbursement in Yarn. These include Corporation Bank.

SIDBI(Small Industries Development Bank

of India).

While 10% of the banks that is Punjab

National Bank Go out to Disburse Iron and

Steel the most.


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LOAN SANCTIONING POWER Interpretation 10% of the Public Banks havecentralized

sanctioning system and have nil

sanctioning Power i.e Vijaya Bank. While 20% of the banks have Sanctioning

Power of Rupees Less than 1crore.These

include Central Bank of India,Indian

Bank.

While 50 % of the Public banks have

sanctioning power of Rs 1 crore- Rs 5crore. These include.

SIDBI (Small Industries Development

Bank Of India)

Bank of India.

Corporation Bank.

Syndicate Bank,Canara Bank. While 10% of the public Bank, has the

sanctioning power of Rs 1 crore which is


While 10% of the Public Bank, has the

sanctioning power of More than Rs 5

crore. That is Punjab National Bank.


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Sector or product considered

safe to fund.Interpretation 20% of the Public Banks Consider Bi-cycle Sme

Export as the safe area to Fund. These Include

State Bank of India. Bank of India.

While 20% of the Banks Consider Hosiery Sme

exporters as the safe area to fund. These

Include

Vijaya Bank.


And 20% of the Banks consider Hand Tool Smeexporters as safe area to fund .These Include

Indian Bank.

Syndicate Bank.

While 30% of the Banks consider all the

products safe to fund depending upon the

proposal and reputation of the exporter. These

Include

SIDBI.

Canara Bank.


10 % go for yarn that is corporation Bank.


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Subvention offered Interpretation

The Fig shows the subvention rateoffered to the Ludhiana SME exporters

and 90% of the

Banks subvent 0%-2%.These include


Punjab National.

Bank of India.

Indian Bank.

Corporation Bank.

Vijaya Bank.

Syndicate Bank.

Canara Bank.


While 10% of the public Bank that is

SIDBI has fixed Lending Rate and does

not any kind of Subvention to the SME

exporters.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Question 6

0%-2%

2%-4%

4%-6%

Any other

NA


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In terms of Fund Based

assitence to new exportersInterpretation

60% of the Public Banks state that they

encourage new exporters and provide

them complete fund based assistanceas they do to old exporters.

These Include


Punjab National.

Bank of India.

Indian Bank.

Corporation Bank.

Vijaya Bank.

While 40% of the banks stay neutral

while providing fund based assistance

to new exporters. These include

Syndicate Bank.

Canara Bank.

Indian Bank.

SIDBI.


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In terms of Turn Around Time. Interpretation

60 % of the Public banks disburse the

case with in the time span of 0-2 days.These include

State Bank of India

Punjab National Bank

Bank of India.


Indian Bank.


While 10% of the Public Banks taken

take 2-4days to disburse the case that is

SIDBI (Small industries Development

Bank of India.)

While 10% of the banks take 4-6 days to

disburse the case that is

Coporation Bank.

While 20% of the banks take more than

6 days to disburse the case that includes

Syndicate Bank. Vijaya bank.


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Processing Fee Charges Interpretation

60% of the Public Banks charge 0.6-1%

of the Loan amount as the processingfee.These include

Bank of India.

Syndicate Bank.

SIDBI.

Canara Bank.

Vijaya Bank .

Canara Bank.

While 40% of the Public Banks charge

0.1-0.5% of the loan amount.Thes

include

Indian Bank.




While no bank charges 0% and more

than 1% of the processing fee.


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In Terms of Bill Realisation

ChargesInterpretation

10% of the banks have Nil Bill realization

charges. That is

Canara Bank.

The Fig also represents that 20% of the banks

charge Rs 500 + Service Tax. That includes



The Fig also represents that 50% of the banks

charge 1000+ST of the Bill as Bill realizationCharges. These includes

Vijaya Bank .

Corporation Bank.

Syndicate Bank .

Indian Bank.

SIDBI.

The above Fig also Represents that 10 % of the

Banks charge more than Rs 1000+ST that is

Bank of India.

While in the research State Bank of India

Charges Minimum Rs 700 or 0.15% of the Bill.


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In terms of Balancesheets

and ITR required Interpretation

The above Fig represent thatNumber of years of Balance Sheets

Required and Income Tax Return

Required to Furnish to the bank for

Export Finance. These include all the

public banks require for three years.


Punjab National.

Bank of India.

Indian Bank.

Corporation Bank.

Vijaya Bank.

Syndicate Bank.

Canara Bank.


SIDBI.


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Opinion of banks to fund SME

exporters aggresively in

coming two years.

Interpretation

30% of Banks said that they will

go for Bi-cycle these include SBI,PNB,Indian Bank.

60% will go for Textile out of

which 40% will go for yarn and

20% will go for Hosiery these

include corporationBank,SIDBI,Syndicate

Bank,Vijaya Bank.

And 20% comprise of Canara

and Bank of India.

Whlie Central Bank of India willgo for Hand Tool.0%

10%

20%

30%

40%

50%

60%

Category 1

Bi-cycle

Textile

Yarn

option b.3

option c

option d


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Comparison in terms of Rate of Interest

SNO Name of Bank BPLR BASE RATE

1 SBI 11.75% 7%

2 PNB 11% 8%

3 BANK OF INDIA 12% 8%

4 CENTRAL BANK OFINDIA

12% 8%

5 CORPORATION

BANK OF INDIA

12% 7.75%

6 SIDBI 11% 7.5%

7 INDIAN BANK 12.50% 8%

8 SYNDICATE BANK 12% 8.25%

9 VIJAYA BANK 12.15% 8.25%

10 CANARA BANK 12% 8%


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The above table represents the comparison between

the BPLR and Base rates between the public banks.

From the above table it is clear that

PUNJAB NATIONAL BANK and SIDBI come up with thelowest BPLR and PNB also goes to subvent up to 2%

there by making lending rate more lower, however

SIDBI does not go out for further subvention.

SBI stands out to have the lowest Base rate that is

7%.


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Private BanksDisbursement made by pvt

banks.

Interpretation.

60% of private banks do not disbursemore than 50 crores annually to

Ludhiana SME export houses. In these

60% the private banks are-

Catholic Bank

Federal Bank

IndusInd Bank

South Indian Bank

Standard Chartered

Yes Bank

While 40% of private banks disburse

more than 150 crore rupees which

include-

Axis Bank

Citi Bank

HDFC Bank

ICICI Bank

.


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Industry-productwise

disbursementInterpretation

0% of private banks in Ludhiana Disburse

maximum to Ludhiana Bi-cycle Smeexporters.

Whereas 30% of finance is disbursed to

Hosiery SME exporters. These include

Axis Bank.

Citi Bank.

HDFC Bank.

While 60% of the Banks go for

disbursement in Yarn. These include

Catholic Syrian Bank.

Federal Bank.

ICICI Bank.

IndusInd Bank.

South Indian Bank.

Standard Chartered.

While 10% of the banks that is Yes Bank

goes out to Disburse Iron and Steel the

most.


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In terms on Loan scantioning

PowerInterpretation

60% of the Private Banks have a centralized

sanctioning system and have nil sanctioning

Power. Which includes:


Citi Bank.

HDFC Bank.

IndusInd Bank.

Standard Chartered Bank.

Yes Bank.

While 10% of the banks have Sanctioning

Power of Rupees Less than 1crore.These

include

South Indian Bank.

While 0 % of the Public banks have

sanctioning power of Rs 1 crore- Rs 5 crore.

While 30% of the Banks, have the sanctioning

power of Rs 1 crore which are

Axis Bank.

Federal Bank.

ICICI Bank.

While 0% of the Private Banks, has the

sanctioning power of More than Rs 5 crore.


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SECTOR OR PRODUCT WHICH

IS CONSIDERED AS SAFE ZONE

TO FUND

Interpretation 10% of the Private Banks Consider Bi-cycle

Sme Export as the safe area to Fund. These

Include ICICI Bank.

While 40% of the Banks Consider Hosiery Sme

exporters as the safe area to fund. These

Include

AxisBank.

Citi Bank.

South Indian Bank.

Yes Bank.

And 30% of the Banks consider Hand Tool Sme

exporters as safe area to fund .These Include


Federal Bank.

IndusInd Bank. Hand Tools is supported by 20% of the banks.

Standard Chartered

ICICI Bank.

While 10% of the Banks consider all the

products safe to fund depending upon the

proposal and reputation of the exporter. That

is HDFC Bank

SUBVENTION RATES OFFERED


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SUBVENTION RATES OFFERED

BY PUBLIC BANKS TO SME

EXPORTERS Interpretation

The above Fig shows the subvention rateoffered to the Ludhiana SME exporters and

70% of the Public Banks subvent 0%-2%.These

include

Axis Bank.


Citi Bank.

Federal Bank. ICICI Bank.

IndusIndBank.

Yes Bank.

While 10% of the public Bank that is Standard

Chartered allows Subvention of 2-4% to the

exporters.

While 20% banks subvent 4-6%

HDFC Bank.

South Indian Bank.

BANKS IN TERMS OF FUND


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BASED ASSISTANCE TO NEW

EXPORTERSInterpretation

The above fig clearly shows that 0% of the

Private Banks encourage new exporters and

do not provide them any fund basedassistance as they do to old exporters.

By new exporters it means that an exporter

without any Income tax Return and Balace

Sheets.

While 40% of the banks stay neutral while

providing fund based assistance to new

exporters. These include

ICICI Bank.

IndusInd Bank.


South Indian Bank.

Whereas 60% of the the private banks said

that they are very rigid in providing any

assistance to new exporters. Which are: Axis Bank.


Citi Bank.

Federal Bank.

HDFC Bank.

Yes Bank.


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TURN AROUND TIME FOR

DISBURSEMENT AFTER

SUBMISSION OF DOCUMENTSInterpretation

From the above fig it is clear that 10 % of the

Private banks, i.e. Axis Bank disburse the case

with in the time span of 0-2 days.

While 10% of the Private Banks, i.e. Yes Bank

takes 2-4days to disburse the case.

While 10% of the banks take 4-6 days to

disburse the case that is ICICI Bank.

While 70% of the banks take more than 6

days to disburse the case that includes


Citi Bank.

Federal Bank.

HDFC Bank.

IndusInd Bank.South Indian Bank.Standard

Chartered Bank.


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PROCESSING FEE CHARGES

Interpretation

The above fig represents the processing feecharges charged by the Public Banks.

60% of the Private Banks charge 0.1-0.5% of

the Loan amount as the processing fee. These

include

Federal Bank.

HDFC Bank.

ICICI Bank. South Indian Bank.


While 50% of the Public Banks charge 0.6-1%

of the loan amount. These include

Axis Bank.


Citi Bank.

IndusInd Bank.

Yes Bank.

While no bank charges 0% and more than 1%

of the processing fee


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IN TERMS OF INCOME TAX

RETURN REQUIRED Interpretation

Shows that only 1 bank thatis federal bank requires the

income tax return for 1 year

to be submitted by the SME

exporters, rest all the

private banks considered by

us require income tax

returns for 3 years


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IN terms of funding sector

wise in next two years Interpretation

The above figure shows a

very scattered response of

the banks when they were

asked about the industry

that they feel will bebooming in the next 2

years.

10% of the private banks,

i.e. axis bank said that bi-cycle industry will be

aggressively funded in the

next two years.

C i i T f I t t R t i P i t


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Comparison in Terms of Interest Rates in Private

BanksSNO Name of Bank BPLR Base Rate

1 Standard

Charted Bank

16% 7.25%

2 City Bank 15% 7.5%

3 Axis Bank 14.75% 7.50%

4 South IndianBank

16.% 8.10%

5 ICICI Bank 15.75% 7.5%

6 Catholic

Serian Bank

14.75% 8%

7 Fedral Bank 15.25% 7.75%

8 HDFC Bnak 15.75% 7.5%

9 Indusind

Bank

16.75% 7%

10 Yes Bank 16.50% 7%


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Interpretation

From the above table it is clear that:

IndusInd Bank lends out with Highest BPLR

that is 16.75% but on the same hand the base

rate is 7%.

Whereas Yes Bank has lowest Base Rate that is

7% with Indusind bank.

Where as the Leading Banks HDFC and ICICI

stand common in terms of BPLR as well as

base rate.


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Conclusion and findings

Export Finance is a very important branch to

study & understand the overall gamut of the

international finance market.

Availability of favorable Export financeschemes directly impacts the local trade,

encourages exporters, enlarges markets

abroad, improves quality of domestic goodsand overall helps the nation boost its

exchange earnings.


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Comparison

60% of public banks do not

disburse more than 50cr

annually to Ludhiana SME

export houses.

Where as 40% of the PublicBanks disburse finance to

Hoseiry exporters.

While 50 % of the Public

banks have scantioningpower of Rs 1 crore- Rs 5

crore that means they have

De-centralised system of

Funding.

60 % of the private banks

also donot disburse more

than 50cr to SME exporters

in Ludhiana.

Where as 60% of the Privatebanks go to Disburse for

Yarn.

60%of the Private Banks

have NILL scantioningpower at their end and have

centralized system and get

the cases approved from

their respective corporate

offices.


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In terms of Safe funding

industry Public banks(30%)

consider all viable projectssafe to fund.

Public Banks Have less rate

of Interest.

And in terms of subvention90% of the public banks

subvent 0-2%.

In case of Private Banks

maximum Private

Banks(60%) find Bicycle Smeexporters safe to fund.

Have more rate of

Interest.

Where as 50% of the private

banks subvent 0-2% but

40% of the private banks

subvent more 4-6% down

their lending rates to be incompetition with public

banks


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In terms of fund basedassistance to the new

exporters Public banks

completely over ruled

Private Banks as 60% of saidthat they provide maximum

complete fund based

assistance to fresh

exporters. In terms of processing fee

charges 60% of the public

banks charge 0.6%-1%

Where as no private

bank said that it

encourages most to

new exporters.

50% of the private banks

charge the same however

the processing fee charges

could be reduced but it

depends upon the

reputation of exporter and

discretion of the Bank


70/71

In terms of Bill realizationcharges only 50% public

banks charge Rs

1000+service tax.

However in terms of Incometax returns and Balance

sheets required both Public

and private banks are equal.

Where as all the privatebanks charge Rs

1000+service tax that makes

public banks better than

private banks. But in terms of customer

attention and co-operation

Private banks are better

than Public Banks howeverING VYSYA Bank is an

exception.


71/71

Thank you

finanlpptexportfinance-100930143931

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