THE EXIM BANK

8/3/2019 THE EXIM BANK

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THE EXIM BANK

THE INSTITUTION

Export-Import Bank of India is the premier export finance institution of the country, set up in 1982 under the Export-Import Bank of India Act 1981. Government of India launched the institution with a mandate, not just to enhanceexports from India, but to integrate the countrys foreign trade and investment with the overall economic growth. Sinceits inception, Exim Bank of India has been both a catalyst and a key player in the promotion of cross border trade andinvestment. Commencing operations as a purveyor of export credit, like other Export Credit Agencies in the world,Exim Bank of India has, over the period, evolved into an institution that plays a major role in partnering Indianindustries, particularly the Small and Medium Enterprises, in their globalisation efforts, through a wide range ofproducts and services offered at all stages of the business cycle, starting from import of technology and exportproduct development to export production, export marketing, pre-shipment and post-shipment and overseasinvestment.

THE INITIATIVES

y Exim Bank of India has been the prime mover in encouraging project exports from India. The Bank providesIndian project exporters with a comprehensive range of services to enhance the prospect of their securingexport contracts, particularly those funded by Multilateral Funding Agencies like the World Bank, AsianDevelopment Bank, African Development Bank and European Bank for Reconstruction and Development.

y The Bank extends lines of credit to overseas financial institutions, foreign governments and their agencies,enabling them to finance imports of goods and services from India on deferred credit terms. Exim Bankslines of Credit obviate credit risks for Indian exporters and are of particular relevance to SME exporters.

y The Banks Overseas Investment Finance programme offers a variety of facilities for Indian investments andacquisitions overseas. The facilities include loan to Indian companies for equity participation in overseasventures, direct equity participation by Exim Bank in the overseas venture and non-funded facilities such asletters of credit and guarantees to facilitate local borrowings by the overseas venture.

y The Bank provides financial assistance by way of term loans in Indian rupees/foreign currencies for settingup new production facility, expansion/modernization/upgradation of existing facilities and for acquisition ofproduction equipment/technology. Such facilities particularly help export oriented Small and MediumEnterprises for creation of export capabilities and enhancement of international competitiveness.

y Under its Export Marketing Finance programme, Exim Bank supports Small and Medium Enterprises in theirexport marketing efforts including financing the soft expenditure relating to implementation of strategic andsystematic export market development plans.

y The Bank has launched the Rural Initiatives Programme with the objective of linking Indian rural industry tothe global market. The programme is intended to benefit rural poor through creation of export capability inrural enterprises.

y In order to assist the Small and Medium Enterprises, the Bank has put in place the Export MarketingServices (EMS) Programme. Through EMS, the Bank seeks to establish, on best efforts basis, SME sectorproducts in overseas markets, starting from identification of prospective business partners to facilitatingplacement of final orders. The service is provided on success fee basis.

y Exim Bank supplements its financing programmes with a wide range of value-added information, advisoryand support services, which enable exporters to evaluate international risks, exploit export opportunities andimprove competitiveness, thereby helping them in their globalisation efforts.


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THE LEADERSHIP

Since inception, Exim Bank has had, at the helm of its affairs, leading banking professionals as Chief Executive

Officers. Shri R.C. Shah, a seasoned banker, with vast commercial and international banking experience, was the

first Chairman and Managing Director of Exim Bank during January 1982-January 1985. His vision helped the setting

up of the institution as a unique organizational model, with a flat, non-hierarchical culture, multi-disciplinary approachto problem solving, access to the latest technology and a climate for innovation. He was succeeded by Shri Kalyan

Banerji, who was the Chairman and Managing Director during February 1985-April 1993. Shri Banerji had long years

of commercial banking experience, with exposure to international banking. Ms. Tarjani Vakil took over as the

Chairperson and Managing Director of the Bank in August 1993 and guided the institution in its endeavours for export

capability creation, till October 1996. Ms. Vakil had long years of development banking experience and was

associated with Exim Bank since its inception. She was succeeded by Shri Y.B. Desai, who was the Managing

Director of the Bank during August 1997-April 2001. Shri Desai had vast commercial banking experience and joined

Exim Bank in the initial years of the institution. Shri T.C. Venkat Subramanian took over as Chairman and Managing

Director of Exim Bank from May 1, 2001. Shri Subramanian has both commercial banking and development banking

experience and has been associated with Exim Bank since its inception. Under the stewardship of Shri Subramanian,

Exim Bank has crossed significant milestones in business promotion as well as other initiatives as the premier export

finance institution of the country.

THE BOARD

In its endeavours, Exim Bank of India has, all along, been guided, at the Board level, by senior policy makers, expert

bankers, leading players in industry and international trade as well as professionals in exports or imports or financing

thereof. The Board currently includes top level functionaries from the Ministries of Finance, Commerce, External

Affairs and Industry, Government of India, a Deputy Governor from the Reserve Bank of India, Chairmen of Industrial

Development Bank of India, Export Credit Guarantee Corporation of India, State Bank of India, Punjab National Bank

and Bank of Baroda and the Director General of Research and Information System for Developing Countries. Some

of the illustrious Board Members in the past, include Dr. Montek Singh Ahluwalia (former Secretary, Ministry of

Finance, Government of India and currently Deputy Chairman, Planning Commission of India), Shri Kamlesh Sharma

(former Indian High Commissioner in the UK and currently the Commonwealth Secretary General), Dr. Abid Hussain

(former Commerce Secretary, Government of India and Indian Ambassador to USA), Dr. Bimal Jalan (former

Secretary, Ministry of Finance, Government of India and Governor, RBI and currently a Member of Parliament in theRajya Sabha), Shri S. Venkitaramanan (former Secretary, Ministry of Finance, Government of India and Governor,

RBI), Dr. Deepak Nayyar (former Chief Economic Advisor, Ministry of Finance, Government of India and currently

Professor of Economics, Jawaharlal Nehru University, New Delhi), Shri Tejendra Khanna (former Commerce

Secretary, Government of India and currently Lt. Governor of Delhi), Dr. S.S.Sidhu (former Industry Secretary,

Government of India and currently Governor of Goa ), Shri. T.R. Prasad (former Industry Secretary and Cabinet

Secretary, Government of India ) and Shri S.S. Tarapore (former Deputy Governor, RBI, who led the Tarapore

Committee on Capital Account Convertibility).


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ROLE OF EXIM BANK:

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.

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

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.


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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 offerRefinance 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 ourFinance forDeemed 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 forbeing exported under the 'Exim Policy' of the Government of India.

FINANCE FOR EXPORT ORIENTED UNITS

Term Finance (For Exporting Companies)

y Project Financey Equipment Financey Import of Technology & Related Servicesy Domestic Acquisitions of businesses/companies/brandsy Export Product Development/ Research & Developmenty General Corporate Finance


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Working Capital Finance (For Exporting Companies)

Funded

o Working Capital Term Loans [< 2 years]o Long Term Working Capital [upto 5 years]o Export Bills Discountingo Export Packing Credito Cash Flow financing

y Non-Fundedo Letter of Credit Limitso Guarantee Limits

Working Capital Finance (For Non- Exporting Companies)

y Bulk Import of Raw Material

Term Finance (For Non- Exporting Companies)

y Import of Equipment

Export Finance

y Pre-shipment Credity Post Shipment Credity Buyers' Credity Suppliers' Credit [including deferred payment credit]y Bills Discountingy Export Receivables Financingy Warehousing Financey Export Lines of Credit (Non-recourse finance)

Equity Participation (In Indian Exporting Companies)

y To part finance project expenditure(Project, inter alia, includes new project/ expansion/ acquisition ofbusiness/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


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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]

OVERSEAS INVESTMENT FINANACE

y Finance for Indian Company's equity participation in the overseas Joint Venture (JV)/ Wholly OwnedSubsidiary (WOS)

y Direct Finance (Term & Working Capital) to the overseas JV / WOS

y Finance (for equity/debt component) for acquisition of overseas businesses / companies including leveragedbuy-outs including structured financing options

y Direct Equity by Exim Bank in the overseas JV/ WOS of an Indian Company.

Ex:

Manufacturing facility of 'Advanta Semillas', Argentina, a company producing hybrid seedsof sunflower, corn, sorghum etc. Mumbai basedUnited Phosphorus, with support from EximBank, has acquired Advanta which has similarfacilities in Australia and Thailand, in addtion toArgentina.


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LINES OF CREDIT:

A cricket stadium under construction in Georgetown, Guyana, by Shapoorji Pallonji and Co Ltd., Mumbai. The desigconstruction of this stadium, at which several matches of the World Cup 2007, were played, has been financed by Exim under a Line of Credit extended t o the Government of Guyana.


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SME AND AGRI FINANCE:

Small and Medium Enterprises (SME) Finance

The importance of SME sector is well-recognized world over owing to its significantcontribution in achieving various socio-economic objectives, such as employment generation,contribution to national output and exports, fostering new entrepreneurship and to providedepth to the industrial base of the economy. India has a vibrant SME sector that plays animportant role in sustaining economic growth, increasing trade, generating employment andcreating new entrepreneurship in India.

Indian SMEs require business advisory services to enhance their internationalcompetitiveness in a highly competitive globalising world. The SMEs find the services ofreputed national and international consultants as not cost effective and often, not adequately focused. Recognising this knowgap, Exim Bank of India has been endeavouring to provide a suite of services to its SME clients. These include providing busleads, handholding during the process of winning an export contract and thus assisting the generation of export businessuccess fee basis, countries/ sector information dissemination, capacity building in niche areas such as quality, safety, e

marketing, etc. and financial advisory services such as loan syndication, etc.

AGRIFINANCE

The globalization and post-WTO scenario offers considerable scope for exports of Indian agricuproducts. Exim Bank has a dedicated Agri Business Group to cater to the financing needs of eoriented companies dealing in agricultural prod

Financial assistance is provided by way of term loans, pre-shipment/post-shipment credit, ovebuyers' credit, bulk import finance, guarantees etc. Term loans with varying maturities are providesetting up processing facilities, expansion, modernization, purchase of equipment, impoequipment/technology, financing overseas joint ventures and acquisitions

The Bank has strong linkages with other stakeholders in agri sector such as Ministry of Processing Industries, GoI, NABARD, APEDA, Small Farmers' Agri-Business Consortium (SNational Horticultural Board etc. Apart from financing, the Bank also provides a range of advservices to agri expo

The Bank also publishes a number of Occasional Papers, Working Papers on export potential of various sub-sectors in agricand a bi-monthly publication in different languages on global scenario in agri-business and opportunities the

For further details of Exim Bank's financial assistance and services pertaining to the agricultural sector, please visit our dediweb-portal on agri business.


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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 Bahave been commercially successful across India and overseas markets.

Nature of Finance

y Cashflow financing for film productiony Cashflow financing for film distribution/exhibition in overseas marketsy Term loans for fixed assets financey Term financing for export market development

Films financed by Exim Bank

Released

y Honeymoon Travels Pvt. Ltd.y Kabul Expressy Dhoom -2y Don - The Chase Begins Againy Fanaay Bunty Aur Babliy Salaam Namastey Veer Zaaray The Risingy Dhoomy Hum Tum

y Cheeni Kum

Not Released

y Shringaara - Dance of Love

Indian Film Industry

The Indian film industry is an integral part of the Indian socio-economic psyche and the most popularsource of entertainment in the country. Indian film industry was conferred Industry Status in the year2000 and is mainly private funded. Indian Film industry is the world's biggest film industry in terms of

the number of movies produced and released in a year. In 2004, there were 934 films certified across,with Hindi accounting for 245 of them. The total number of admissions (people attending movies) isalmost over 3 billion, which is almost double the US markets and three times that of the rest of Asia.

The Indian film industry comprises of a cluster of regional film industries, like Hindi, Telugu, Tamil, Kannada, Malayalam, Beetc. This makes it one of the most complex and fragmented national film industries in the world.


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RURAL INTIATIVES:

Exim Bank believes that there is a strong linkage between export development and poverty reduction. For acountry like India, with a large (70%) rural population, creation of export capability in rural grassrootenterprise is a must. Globalisation will be successful and acceptable only if benefits reach the ruralpopulation. Rural enterprises suffer from various handicaps including image, quality, capacity, packaging,delivery, etc. NGOs and SHGs are the front for rural enterprises. Through proper guidance and support,rural grassroot enterprises can access the global market and realize better prices for their products therebycontributing to poverty reduction. Exim Bank's experience in working with NGOs/SHGs and rural enterprisesis encouraging. Exim Bank, leveraging its presence in both India as well as overseas, is facilitating linkagebetween rural grassroot enterprises and corporates and with overseas buyers and agencies with theobjective of bringing the benefits of globalisation to the rural population.

EXPORT SERVICES:

Exim Bank offers a diverse range of information, advisory and support services, which enable exporters toevaluate international risks, exploit export opportunities and improve competitiveness.


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ADVISORY SERVICES:

MULTILATERAL AGENCIES FUNDED PROJECTS OVERSEAS (MFPO)

Information and support services to Indian companies to help improve their prospects for securing business inmultilateral agencies funded projects.

y Dissemination of business opportunities in funded projectsy Providing detailed information on projects of interesty Information on Procurement Guidelines, Policies, Practices of Multilateral Agenciesy Assistance for Registration with Multilateral Agenciesy Advising Indian companies on preparation of Expression of Interest, Capability Profiley Bid Intervention

PROMOTING INDIAN CONSULTANCY

Tie-up with

y International Finance Corporation, Washington D.C.y Eastern & Southern African Trade & Development Bank (PTA Bank)y African Management Services Company (AMSCO), Netherlands

Examples

y Gems & Jewellery Study - Zambiay Financial Training Mission - Kenyay Cement Project - Cameroony Software - Madagascary Wool Knitting - Vietnamy Textile - Nigeriay Refrigeration - Ghanay Financial Training Poland


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EXIM BANK AS A CONSULTANT

y Feasibility study for establishment of an export credit and guarantee facility for Gulf Cooperation Councilcountries.

y Regional cooperation in export finance and export credit guarantees for ESCAP.y Study on promotion of international competitiveness and exports of manufactured goods for ESCAP.y Setting up the Afrexim Banky Designing of Export Financing Programmes - Turkeyy Setting up an Exim Bank in Malaysiay Designing of Export Marketing Seminars for SMEs in Vietnamy Export Development Project: Ukrainey Enterprise Support Fund: Armeniay Establishing an Export Credit Guarantee Company in Zimbabwe

y Advisory services to Industrial Development Corporation of South Africa for international finance productsy Study on Projecting Mauritius as an Investment Hub for Indian Firmsy Blue Print for setting up of an Exim Bank in Zimbabwe.

KNOWLEDGE BUILDING

EXIMIUS CENTRES FOR LEARNING - AHMEDABAD, BANGALORE AND PUNE

y To organise seminars and workshops in areas such as international trade & investment, export marketing,quality, packaging, business opportunities in multilateral agencies funded projects, sector and country

specific programmesy Guest faculty from network partners such as IFC, World Bank, EBRD, UNIDO, Asian Development Bank,

African Development Bank, CBI, the Netherlands

RESEARCH STUDIES

y Research Studies on products, sectors, countries, macro economic issues relevant to international trade andinvestment

y Number of research studies published as:o Occasional Papers: 135;o Working Papers: 15


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Examples of Information Services

y Hungarian Pharmaceutical Sectory

Importers of Sanitaryware, Castings in North Americay Importers of Agro-chemicals in Eastern Europey Study for ear buds market in Hungaryy Study of the Indian Wine market for a Hungarian Companyy Partner identification for an Italian Sanitaryware manufacturery Study of the Indian Crane Industry for a Finnish companyy Regulatory Framework for setting up a Pharma Project in Chinay Market report for Computer Monitors in India for a Singaporean firmy Study on Bicycle market in Eastern Europe for Indian Cycle exportery Market Potential for Denim in South East Asiay Study on India's Food Sector

PROMOTIONAL PROGRAMMES

Project Preparatory Services Overseas Programme

y Set up in 1987 to promote Indian consultancy at preparatory stages in projects overseas with potential ofMultilateral Funding and downstream linkages for Indian exports.

y Eligible Costs Project feasibility studies, project formulation and related advisory servicesy Examples

o Railway Sector Study - Vietnamo Thermal Power - Macedoniao Road Rehabilitation - Uzbekistano Agriculture Egypt

Export Marketing Services

The Bank provides assistance to Indian companies, to enable them establish their products in overseas marketsthrough its Export Marketing Services, starting from identification of prospective business partners to facilitatingplacement of final orders.

The Export Marketing service leverages the Banks high international standing, in-depth knowledge andunderstanding of the international markets and well established institutional linkages, coupled with its physicalpresence, to support Indian companies in their overseas marketing efforts on a success fee basis.

Service offered across sectors

y Marine Productsy Textiles - yarns, fabrics, apparels.y Food Processing - Ready to Serve, spices and condimentsy Office Stationeryy Ayurveda medicines/cosmetics.y Others


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for providing financial assistance to exporters and importers, and for functioning as the principalfinancial institution for coordinating the working of institutions engaged in financing export and import ofgoods and services with a view to promoting the countrys international trade

shall act on business principles with due regard to public interest

: The Export-Import Bank of India Act, 1981

Evolving Vision

Genesis

y SET UP BY AN ACT OF PARLIAMENT IN SEPTEMBER 1981y WHOLLY OWNED BY GOVERNMENT OF INDIAy COMMENCED OPERATIONS IN MARCH 1982y APEX FINANCIAL INSTITUTIONS

REGULATIONS:

y Export-Import Bank of India : General Regulationsy Export-Import Bank of India : Bond Regulations

y Export-Import Bank of India : Pension Regulations Hindi Version


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COMMERCIAL BANKS:

After the implementation of the GlassSteagall Act, the U.S. Congress required that banks engage only inbanking activities, whereas investment banks were limited to capital market activities. As the two nolonger have to be under separate ownership under U.S. law, some use the term "commercial bank" torefer to a bank or a division of a bank primarily dealing with deposits and loans from corporations or largebusinesses. In some other jurisdictions, the strict separation of investment and commercial banking neverapplied. Commercial banking may also be seen as distinct fromretail banking, which involves theprovision of financial services direct to consumers. Many banks offer both commercial and retail bankingservices.

The name bankderives from the Italian word banco "desk/bench", used during

the Renaissance by Florentine bankers, who used to make their transactions above a desk covered by a

green tablecloth.[2]

However, traces of banking activity can be found even in ancient times.

In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders would set uptheir stalls in the middle of enclosed courtyards called macella on a long bench called a bancu, from

which the words banco and bankare derived. As a moneychanger, the merchant at the bancu did not so

much invest money as merely convert the foreign currency into the only legal tender in Rome- that of the

Imperial Mint

processing of payments by way of telegraphic transfer, EFTPOS, internet banking, or other means

issuing bank drafts and bank cheques

accepting money on term deposit

lending money by overdraft, installment loan, or other means

providing documentary and standby letter of credit, guarantees, performance bonds, securities

underwriting commitments and other forms of off balance sheet exposures

safekeeping of documents and other items in safe deposit boxes

distribution orbrokerage, with or without advice, ofinsurance, unit trusts and similar financial products

as a financial supermarket

cash management and treasury

merchant banking and private equity financing

traditionally, large commercial banks also underwrite bonds, and make markets in currency, interest

rates, and credit-related securities, but today large commercial banks usually have an investment

bank arm that is involved in the mentioned activities.


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THE EXIM BANK

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