Chairman Speech
CHAIRMAN
The Indian economy witnessed a slow recovery in 2013-14 with real GDP growth rate
increasing to 4.7 per cent from 4.5 per cent on the back of the recovery in agricultural
output and rural demand, aided by a strong monsoon during the year, and sustained growth
in the services sector.
On the external front, the year 2013 witnessed sluggish growth in global trade, mainly
attributed to the lingering impact of the EU recession, high unemployment in Euro area
economies, and uncertainty about the timing of the Federal Reserve’s winding down of
its monetary stimulus in the US. The year recorded flat import demand in developed
economies (0.2 per cent) and moderate import growth in developing economies (4.4
per cent). On the export side, both developed and developing economies only managed to
record small, positive increases (1.5 per cent for developed economies and 3.3 per
cent for developing economies).
In spite of slowdown in global demand, growth in India’s exports recovered in 2013-14,
after witnessing a decline in the previous year. With a modest growth of 4.1 per
cent, India’s exports stood marginally higher at US$ 312.6 billion in 2013-14, up
from US$ 300.4 billion in the previous year.
India’s imports, on the other hand, declined by 8.3 per cent during 2013-14 to US$
450.1 billion, largely reflecting fall in non-oil imports by 12.8 per cent.It may be noted
that the policy of restricting gold imports in August 2013 by the RBI had its desired
impact. Imports of gold, which stood at US$ 53.8 billion in 2012-13, were reduced by 46.3
per cent in 2013-14 to US$ 28.9 billion. Of the decline in total imports of US$ 40.6
billion in 2013-14, decline in gold imports accounted for over 60 per cent (US$ 24.9
billion). Accordingly, the trade deficit for 2013-14 narrowed to US$ 137.5 billion,
compared to US$ 190.3 billion during 2012-13.
BUSINESS INITIATIVES
The Bank supported 75 project export contracts aggregating to Rs. 341.3 billion secured
by 40 Indian companies in 35 countries, reflecting the capabilities of Indian corporates
to secure and execute a diverse range of projects. As on March 31, 2014, 319 project
export contracts valued at Rs. 1403.2 billion supported by the Bank were under execution,
in 74 countries across Asia, Africa and USA by 99 Indian companies. During the year, the
Bank also extended Buyer’s Credit facility to 27 overseas companies to facilitate
exports from India.
Buyer’s Credit under the Government of India’s National Export Insurance
Account (BC-NEIA), which was recently launched in conjunction with the Export
Credit Guarantee Corporation of India Ltd. to promote project exports from India, has made
steady progress. The Bank has so far sanctioned an aggregate amount of US$ 1.4
billion for 11 projects valued at US$ 2.67 billion under BC-NEIA. The Bank has also given
in-principle commitments for supporting several projects and the current active pipeline
includes projects aggregating US$ 6.5 billion under BC-NEIA.
During the year, 24 new LOCs aggregating US$ 1.77 billion were extended by the Bank to
support export of projects, goods and services from India. As on March 31, 2014, the Bank
had in place 189 LOCs covering 75 countries in Africa, Asia, CIS, Europe and Latin America
with credit commitments aggregating US$ 10.3 billion.
With Indian companies having established themselves as global investors, the Bank
provides impetus to such outward-oriented corporates. The Bank assisted 55 corporates for
part financing their overseas investments in 22 countries.
The Bank plans to set up a Project Development Company in Africa, which will
essentially look to bring infrastructure projects in Africa to a bankable stage and
facilitate exports from India to Africa. This is a new initiative Exim Bank has taken.
During the year, the Bank formed a new joint venture, viz. Bharat Handloom Marketing
Company Ltd. (BHMCL) in association with the National Handloom Development Corporation
Ltd. and the Association of Corporations and Apex Societies of Handlooms. BHMCL has been
incorporated as a public limited company under the Companies Act, 1956 to carry out the
business of promotion and marketing of handloom and handicraft products both at the
domestic and global levels.
During the year, the Bank raised foreign currency resources aggregating US$ 3.2
billion equivalent through a variety of instruments, different investor bases and across
various geographies. In March 2014, the Bank issued 5.5-year US$ 500 million Eurodollar
bonds, which are included in the Emerging Market Bond Index. In fact, Exim Bank is the
first Indian entity to be included in the Emerging Market Bond Index. The Bank
raised US$ 171 million equivalent in April 2013 by way of issue of Uridashi Bonds (a bond
denominated in a foreign currency and sold directly to Japanese household investors) in
three different currencies viz., Turkish Lira, Japanese Yen and Mexican Peso thereby
achieving diversi_cation of investor base. In July 2013, the Bank followed up with another
issue of Uridashi Bonds of US$ 148 million equivalent. The Bank has now tapped the
Uridashi Bond market on three occasions and continues to be the only Indian entity in this
market.
The Bank continued its endeavours to support globalisation of rural industries through
the Grassroots Business Initiatives.
Research studies brought out by the Bank have focused on India’s trade and
investment potential with Africa, Southern African Development Community, Latin America
and the Caribbean, Cambodia, Lao PDR, Myanmar, Vietnam, Gulf Cooperation Council, France,
United Kingdom, Germany and Russia, while sector studies have focused on mapping the
potential of the Indian Ceramic Industry, Indian Horticulture and India’s Hi-Tech
exports as well as cross-country comparison on labor laws. Another study on the theme of
"The Eflects of Financial Openness: An Assessment of the Indian Experience" was
also published.
The Asian Exim Banks Forum was conceived and initiated by Export-Import Bank of India
in 1996. In October 2013, the Nineteenth Annual Meeting of the Forum was held at Wuyishan,
China, with the theme "Reinforcing Regional Cooperation & Connectivity in a
Challenging Global Environment". The meeting provided a platform for exchange
of ideas/information amongst the members on the role played by respective Exim Banks in
the areas of co-financing of green projects, resource raising and training. I am
happy to announce that Export-Import Bank of India would be hosting the Twentieth Annual
Meeting of the Forum during November 2014. The theme of the forum would be "Evolving
Role & Relevance of Asian Exim Banks – Path to 2020".
Towards fostering institutional linkages, the Bank has signed memoranda of
understanding with several key institutions in India and abroad, including UK Trade and
Investment, in order to exchange information to boost cooperation particularly between
SMEs from India and the UK, helping them to locate suitable JV and trade partners; Small
& Medium Business Development Chamber of India, to facilitate trade and investment
among the SMEs in India and abroad; Visveswaraya Trade Promotion Centre, a Government of
Karnataka owned institution, for conducting various skill building programmes for
exporters; Women on Wings, The Netherlands, with an objective to create one million jobs
for women in rural India by 2018; National Centre for Design and Product Development, with
an objective of product development of Indian handicraft items; World Craft Council, to
cooperate in areas through which Indian grassroots / social enterprises and crafts could
be supported; International Trade Centre, Geneva to help increase enterprise and sector
competitiveness and promote capacity-building in trade intelligence, including market
research and analysis.
BUSINESS RESULTS
StrongfundamentalsoftheBankhavebeenre_ectedintheBank’sbusinessperformance. Gross
loan assets amounted to Rs. 758.7 billion, registering an increase of 16 percent over the
previous year, while loan approvals stood at Rs. 482.6 billion. Profit before tax stood at
Rs. 10.2 billion, compared to Rs. 10.9 billion in the previous year, while profit
after tax amounted to Rs. 7.1 billion, as against Rs. 7.4 billion in the previous year.
Capital to Risk Assets Ratio stood at a healthy 14.3 per cent, while net NPAs to net loan
asset ratio was at 0.43 per cent. During the year, the Bank received capital of Rs. 7
billion from the Government of India. As on March 31, 2014, the Bank’s total
resources, including paid-up capital of Rs. 38 billion and reserves of Rs. 45
billion, aggregated to Rs. 798 billion. As on March 31, 2014, the Bank was rated Baa3 by
Moody’s, BBB- by Standard & Poor’s, BBB- by Fitch Ratings, and BBB+ by Japan
Credit Rating Agency. All the above ratings are of investment grade or above and are the
same as the sovereign rating.
INSTITUTIONAL INTERACTIONS
We value the relationships, both structured and informal, with agencies and
institutions involved in promotion of trade and investment which have served to supplement
the various endeavours of the Bank. CII, FICCI, ASSOCHAM, FIEO, EEPC, PHDCCI, Project
Exports Promotion Council of India, Indo-EU Chambers of Commerce, other Export Promotion
Councils, Chambers of Commerce and Economic Research Institutes have been a valuable
source of learning and support for us. The Bank has also received strength and value from
interaction with industry, banks, financial institutions, Export Credit Guarantee
Corporation of India Ltd., various Ministries of Government of India, particularly the
parent Ministry of Finance, Reserve Bank of India, and Indian Missions overseas.
BOARD OF DIRECTORS
There have been changes on the Board of the Bank.
Shri M.S. Raghavan, Chairman and Managing Director, IDBI Bank Ltd.; Smt. Arundhati
Bhattacharya, Chairperson, State Bank of India; Shri Rajeev Kher, Secretary, Government of
India, Department of Commerce, Ministry of Commerce & Industry; Ms. Sujata Mehta,
Secretary (Economic Relations & DPA), Government of India, Ministry of External
A_airs; Shri Amitabh Kant, Secretary, Government of India, Department of Industrial Policy
and Promotion, Ministry of Commerce and Industry; Dr. Gurdial Singh Sandhu, Secretary,
Government of India, Department of Financial Services, Ministry of Finance, were appointed
as Directors on the Board.
Shri R.M. Malla, Chairman and Managing Director, IDBI Bank Ltd.; Dr. Raghuram G. Rajan,
Chief Economic Adviser, Government of India, Department of Economic A_airs, Ministry of
Finance; Shri Pinak Ranjan Chakravarty, Secretary (Economic Relations), Government of
India, Ministry of External Affairs; Shri Pratip Chaudhuri, Chairman, State Bank of India;
Shri S.R. Rao, Secretary, Government of India, Department of Commerce, Ministry of
Commerce and Industry; Shri Saurabh Chandra, Secretary, Government of India, Department of
Industrial Policy and Promotion, Ministry of Commerce and Industry; Shri Rajiv Takru,
Secretary, Government of India, Department of Financial Services, Ministry of Finance,
relinquished their directorships consequent upon completion of their term or change in
office. The Bank gratefully acknowledges their invaluable contributions as Directors.
My colleagues on the Board and I would like to express our appreciation for the
distinguished and valuable services rendered by Shri T.C.A. Ranganathan during his tenure
as Chairman and Managing Director and the guidance and support extended by him, which have
helped the Bank to achieve considerable progress. We would also like to place on record
our gratitude for the guidance and support extended by Shri Anurag Jain, Joint Secretary
(Financial Inclusion and CVO), Government of India, Ministry of Finance, Department of
Financial Services, who took over additional charge as CMD, during the intervening period.
I must acknowledge the high level of commitment and dedication displayed by the staff
of the Bank to the pursuit of business growth and new initiatives and for carrying the
Bank’s mission forward.
Yaduvendra Mathur
Chairman & Managing Director
Export-Import Bank of India
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Directors Reports
Directors
The Directors are pleased to present the report of the working of the Bank with the
audited Balance Sheet and accounts for the year ended March 31, 2014.
REVIEW OF OPERATIONS AND FINANCIAL PERFORMANCE
Loan Assets
The Bank approved loans aggregating Rs. 482.64 billion under various lending programmes
as against Rs. 419.19 billion during 2012-13. Loan disbursements during 2013-14 were Rs.
432.62 billion as against Rs. 406.35 billion during 2012-13, while loan repayments during
2013-14 amounted to Rs. 374.57 billion, as against Rs. 326.07 billion in 2012-13.
Gross loan assets as on March 31, 2014 were Rs. 758.73 billion, registering an increase of
16 per cent over the previous year. Rupee loans and advances accounted for 35 per
cent of the total loan assets as on March 31, 2014 while the balance 65 per cent were in
foreign currency. Short-term loans accounted for 12 per cent of the total loans and
advances as on March 31, 2014.
Non-funded Facilities
During the year, the Bank sanctioned guarantees aggregating Rs. 40.64 billion as
against Rs. 58.07 billion in 2012-13. Guarantees issued during 2013-14 amounted to Rs.
17.07 billion as against Rs. 29.38 billion in 2012-13. Guarantees in the books of
the Bank as on March 31, 2014 were Rs. 53.67 billion as against Rs. 47.44 billion
as on March 31, 2013 and Letters of credit as on March 31, 2014 amounted to Rs. 40.60
billion as against Rs. 29.82 billion as on March 31, 2013.
Income/Expenditure
The Bank registered profit before tax of Rs. 10.20 billion on account of General Fund
during 2013-14 as against a profit of Rs. 10.89 billion for the year 2012-13. After
providing for income tax of Rs. 3.10 billion, profit after tax amounted to Rs. 7.10
billion during 2013-14 as against Rs. 7.42 billion during 2012-13. Out of this
profit, an amount of Rs. 1.54 billion is transferred to Reserve Fund. In addition,
the Bank has transferred Rs. 0.12 billion to Sinking Fund and Rs. 2.05 billion to Special
Reserve u/s 36(1)(viii) of the Income Tax Act, 1961. The balance of Rs. 3.39 billion will
be transferred to Government of India (GOI) as provided in the Exim Bank Act.
Profit before tax of the Export Development Fund during 2013-14 was Rs. 47.09 million
as against Rs. 46.60 million during 2012-13. After providing for tax of Rs. 16 million,
the post tax profit amounted to Rs. 31.09 million as against Rs. 31.48 million
during 2012-13. The profit of Rs. 31.09 million is carried forward to next year.
Business income including interest on loans, exchange, commission, brokerage and fees,
etc. during 2013-14 was Rs. 50.55 billion as compared to Rs. 42.47 billion in 2012-13.
Investment income, interest on bank deposits etc. during 2013-14 was Rs. 22.21 billion as
compared to Rs. 17.33 billion in 2012-13. Interest expenses in 2013-14 at Rs. 47.44
billion were higher by Rs. 5.76 billion mainly due to the increase in borrowings.
Administrative expenses as a per cent of total expenses (excluding provisions for
contingencies) worked out to 2.22 per cent during 2013-14 as against 2.17 per cent during
2012-13.
Borrowings
Total borrowings of the Bank at Rs. 714.82 billion as on March 31, 2014, were higher by
11% compared to total borrowings of Rs. 644.85 billion as on March 31, 2013.
Rupee Resources
During the year, the Bank received capital of Rs. 7 billion from the Government of
India (GOI). As on March 31, 2014, the Bank’s total resources including paid-up
capital of Rs. 38 billion and reserves of Rs. 45 billion, aggregated to Rs. 798 billion.
Exim Bank’s resource base includes bonds, certificates of deposit, commercial paper,
term deposits, term loans and foreign currency deposits/borrowings/long-term swaps.
IDBITrusteeship Services Ltd.; the debenturetrustees can be contacted on
itsl@idbitrustees.co.in. During the year, the Bank raised borrowings of varying maturities
comprising rupee resources of Rs. 226.54 billion and foreign currency resources of Rs.
192.38 billion equivalent. Foreign currency resources of US$ 1.74 billion equivalent were
raised through bonds, bilateral/club/syndicated loans and US$ 1.47 billion by way of Buy-Sell
swaps/on-shore deposits. As on March 31, 2014, the Bank had a pool of foreign currency
resources equivalent to US$ 8.51 billion and outstanding Rupee borrowings including
bonds and commercial paper of Rs. 388.82 billion. As on March 31, 2014, market borrowings
constituted 100 per cent of the total borrowings and 90 per cent of the total resources of
the Bank.
Foreign Currency Resources
During 2013-14, the Bank raised foreign currency resources aggregating US$ 3.21 billion
equivalent. The Bank issued 5.5-year US$ 500 million Eurodollar bonds in March, 2014.
These bonds are included in the Emerging Market Bond Index. The Bank raised US$171
million equivalent in April 2013 by way of issue of Uridashi Bonds (a bond
denominated in a foreign currency and sold directly to
Japanesehouseholdinvestors)inthreedifferentcurrenciesviz.,Turkish Lira, Japanese Yen and
Mexican Peso thereby achieving diversi_cation of investor base and currency. In July 2013,
the Bank followed up with another issue of Uridashi Bonds of US$ 148 million equivalent.
The Bank has now tapped the Uridashi Bond market on three occasions and continues to
be the only Indian entity in this market. During 2012-13, the Bank had signed an
agreement for a long term loan of Euro 150 million equivalent with tenor of upto 20 years
with the European Investment Bank. The purpose of the loan is to support projects
that contribute to climate change mitigation. The Bank has drawn EUR 40 million (US$ 54.44
million) in December 2013. The Bank also drew the balance amount of US$ 70 million
of the US$ 100 million Asian Development Bank loan in November 2013. The Bank has a Euro
Medium Term Note Programme of US$ 6 billion of which an amount of US$ 3.98 billion
equivalent has been issued upto March 31, 2014. So far, the Bank has raised FC resources
in diverse currencies including United States Dollars, Japanese Yen, Swiss Francs, Euros,
Australian Dollars, South African Rand, Singapore Dollars, Turkish Lira and Mexican Peso.
Asset Quality
As per RBI prudential norms for Financial Institutions a credit/ loan facility in
respect of which interest and/or principal has remained overdue for more than 90 days, is
defined as a Non-Performing Asset (NPA). The Bank’s gross NPAs at Rs. 15.96
billion as on March 31, 2014, worked out to 2.10 per cent of the total loans and
advances. The Bank’s NPAs (net of provisions) of Rs. 3.21 billion as on March
31, 2014, were at 0.43 per cent of loans and advances (net of provisions) as on March 31,
2014. The Provision Coverage Ratio (PCR) as on March 31, 2014, was 81.34 per cent.
Asset Classification
‘Sub-standard assets’ are those where interest and/or principal remains
overdue for more than 90 days. Sub-standard assets that have remained as NPAs for a period
exceeding 12 months are classified as ‘doubtful assets.’ ‘Loss assets’
are those considered uncollectable. Out of gross NPAs at 2.10 per cent, sub-standard
assets worked out Out of gross NPAs at 2.10 per cent, sub-standard assets worked out to
1.24 per cent, doubtful assets worked out to 0.86 per cent, while there were no loss
assets. Net NPAs at 0.43 per cent of net loans and advances as on March 31, 2014, are
entirely towards sub-standard assets, while doubtful assets have been fully provided for.
Capital Adequacy
The Capital to Risk Assets Ratio (CRAR) was 14.32 per cent as on March 31, 2014,
as compared to 15.28 per cent as on March 31, 2013, as against a minimum 9 per cent
norm stipulated by RBI. The Debt-Equity Ratio as on March 31, 2014 was 8.60:1, as
compared to 8.91:1 as on March 31, 2013.
Exposure Norms
Reserve Bank of India (RBI) has prescribed credit exposure limits for all-India term
lending institutions, at 15 per cent of the financial institutions’ capital funds,
eflective from March 31, 2002, for exposure to individual borrowers and at 40 per cent for
group borrowers. An additional exposure upto 5 per cent (i.e. a total exposure upto
20 per cent of capital funds of the Financial Institution for Single Borrowers and 45 per
cent of capital funds for Borrower Groups) can be taken in exceptional circumstances, with
the prior approval of the Board. The exposure ceilings for individual borrowers and
borrower groups can be exceeded by an additional five percentage points (i.e. 5 per cent
of total capital funds) and ten percentage points (i.e. 10 per cent of total
capital funds) respectively (over and above the maximum limits of 20 per cent and 45 per
cent respectively), provided the additional credit exposure is on account of
infrastructure projects in India. The Bank’s credit exposures to single and group
borrowers as at March 31, 2014 were within the limits stipulated by RBI. There was
1 borrower as on March 31, 2014 for whom exposure over 15 per cent of capital funds
was assumed with the approval of the Board/Management Committee. Exposure to this borrower
as on March 31, 2014 stood at 18.60 per cent of the capital funds of the Bank.
RBI has advised Financial Institutions to adopt internal limits on exposures to
specific industry sectors so that the exposures are evenly spread over various sectors.
The industry exposure limits adopted by the Bank for each industry sector are 15 per cent
of the Bank’s credit exposure to all industry sectors. The Bank’s exposure to a
single industry sector was not more than 15 % per cent of its total exposure as at March
31, 2014.
International and Domestic Rating
As on March 31, 2014, the Bank was rated Baa3 (Stable) by Moody’s, BBB- (Negative)
by Standard & Poors, BBB- (Stable) by Fitch Ratings and BBB+ (Negative) by Japan
Credit Rating Agency (JCRA). All the above ratings are of investment grade or above and
are the same as the sovereign rating. The Bank’s domestic debt instruments continued
to enjoy the highest rating viz. ‘AAA’ rating from the rating agencies, CRISIL
and ICRA.
I. EXIM BANK AS A FINANCIER OF EXPORTS
PROJECTS, PRODUCTS AND SERVICES EXPORTS
The Bank provides a range of export credit services like finance for export of projects
and consultancy services, capital equipment finance, export project cash-flow deficit
finance and guarantees. The Bank is equipped to offer a comprehensive financing package to
Indian project exporters including funded support and project related guarantee
facilities.
(For more details, please write to: peg@eximbankindia.in)
Export Contracts
During FY 2013-14, 75 contracts amounting to Rs. 341.31 billion covering 35 countries
were secured by 40 Indian exporters, as against 85 contracts worth Rs. 242.55 billion
covering 38 countries, secured by 47 Indian exporters during FY 2012-13.
The contracts secured during the year comprised 48 turnkey contracts valued at Rs.
153.39 billion, 11 construction contracts valued at Rs. 184.02 billion, 4 supply contracts
valued at Rs. 1.05 billion and 12 technical consultancy & services contracts
valued at Rs. 2.85 billion. Some major project contracts supported during the year
included :
• Contract for design, construction and commissioning of package 2 of the Riyadh
Metro Project, Saudi Arabia, being executed by Larsen & Toubro Ltd. This is the
largest ever contract secured by an Indian Company.
• Contract for Design and Construction of Gold line Underground Metro being
executed by Larsen & Toubro Ltd.;
• Sub-contract for design, manufacture, erection, testing and commissioning of 360
MW Bheramara Combined Cycle Power Plant Development Project in Bangladesh, being executed
by Larsen & Toubro Ltd.;
• Balance of Plant contract for setting up 4X125 MW open cycle gas based power
plant at Al Nasiriya, Iraq for Ministry of Electricity, Government of Iraq, being executed
by BGR Energy Systems Ltd.;
• Contract for design, construction, installation, commissioning, and testing of
Border Infrastructure Project in Sultanate of Oman, being executed by Engineering Projects
(India) Ltd.;
• Contract for 380 kV D/C Overhead Transmission Line and construction of Gas
Insulated Line station in Saudi Arabia, being executed by KEC International Ltd.
Supply contracts secured during the year included those for agricultural processed
foods, auto components, copper wire, coated steel pipes, gold jewellery, diamond &
studded jewellery, engineering goods, fabricated steel, heavy/light commercial vehicles,
garments, steel wire, steel wire ropes, roping stands, software, polyester yarn, water
cannons, furnace oil, fuel oil, base oil, hydraulic drilling equipments, and ancillary
crafts with other accessories.
Export Credits and Guarantees
During the year, the Bank approved loans aggregating Rs. 148.78 billion by way
of supplier's credit, buyer's credit, and finance for project exports as against Rs.
176.05 billion during the previous year. Disbursements amounting to Rs. 176.87 billion
were made during the year, as compared to Rs. 208.26 billion during the previous year.
Guarantees sanctioned and issued during the year amounted to Rs. 40.64 billion and Rs.
17.07 billion respectively, as against Rs. 58.07 billion and Rs. 29.38 billion
during the previous year. These guarantees pertain to overseas projects in sectors such as
power generation, transmission and distribution, infrastructure development and export
obligation guarantees.
Buyer’s Credit
Buyer’s Credit is a unique programme of Exim Bank under which, the Bank
facilitates Indian exports by way of extending credit facility to overseas buyers for
financing their imports from India. Under Buyer’s Credit programme, Exim Bank makes
payment of eligible value to Indian exporters, without recourse to them. Buyer’s
Credit is a safe, non-recourse financing option available to Indian exporters, especially
to small and medium enterprises, which motivates them to enter overseas markets.
During 2013-14, the Bank extended Buyer’s Credit facility aggregating Rs. 22.27
billion to 27 overseas companies. Disbursements under Buyer’s Credit Programme
aggregated Rs. 24.60 billion for exports to countries that include Argentina, Bangladesh,
Benin, Brazil, Cote d’Ivoire, Germany, Ghana, Guatemala, Jordan, Kazakhstan, Kenya,
Kuwait, Malaysia, Mozambique, Nigeria, Saudi Arabia, Senegal, Singapore, South Africa,
Tanzania, Thailand, Uganda, UAE, USA,
Yemen and Zambia. The products exported under Buyer’s Credit included transport
vehicles and auto spare parts, engineering goods, IT services, fruits and vegetables,
rice, other agro-based products and commodities, plain and studded gold / diamond
jewellery, steel wires and wire rods, fuel & furnace oil, tyres and yarn etc. Several
exporters from small and medium enterprises were beneficiaries under the Buyer’s
Credit Programme, receiving non-recourse payment.
The Bank has laid strong emphasis on enhancing India's project exports, the funding
options for which have been strengthened with the introduction of the Buyer’s Credit
under GOI’s National Export Insurance Account (BC-NEIA) programme. BC-NEIA is a
unique financing mechanism that provides a safe mode of nonrecourse financing option to
Indian exporters and serves as an eflective market entry tool to traditional as well as
new markets in developing countries, which need deferred credit on medium or long term
basis. The response to the programme has been encouraging. The Bank has sanctioned
an aggregate amount of US$ 1.4 billion for 11 projects valued at US$ 2.6 billion,
including the supply, erection and commissioning of a Water Treatment Plant and
distribution to reservoirs across the Dambulla region in Sri Lanka; setting up a 187
km (132 KV) power transmission line from Lusaka to Luangwa along with distribution network
and three 132 KV substations in Zambia; setting up of an integrated LPG and Bitumen
Storage Facility at the Beira Port in Mozambique; and Plant and Design – Build
Contract for Civil and Mechanical & Engineering Works for the Aluthgama, Mathugama and
Agalawatta Integrated Water Supply Project in Sri Lanka. The Bank has also given
in-principle commitments for supporting 54 projects with an aggregate value of US$ 7.43
billion under BC-NEIA.
Lines of Credit
Exim Bank extends Lines of Credit (LOCs) to overseas financial institutions, regional
development banks, sovereign governments and other entities overseas, to enable buyers in
those countries to import developmental and infrastructure projects, equipments, goods and
services from India, on deferred credit terms. Indian exporters can obtain payment of
eligible value from Exim Bank,
withoutrecoursetothem,againstnegotiationofshippingdocuments. (For more details, please
write to eximloc@eximbankindia.in)
During the year, the Bank extended 24 LOCs, aggregating US$ 1.77 billion, to
support export of projects, goods and services from India. LOCs extended by Exim Bank
during the year include LOCs to the Governments of Benin, Burundi, Ethiopia, Gabon,
Honduras, Lao PDR, Liberia, Mauritius, Mozambique, Myanmar, Nicaragua, Niger, Republic of
Congo, Rwanda, Senegal, Sudan, Vietnam and Zimbabwe. These LOCs will finance and catalyse
exports by way of financing projects such as upgradation of water supply schemes in
villages, farm mechanization, railways, rehabilitation and upgradation of broad-casting
facilities, power transmission and distribution, rural drinking water, potable water
facilities for semi-urban and rural communities, rehabilitation of roads, construction of
houses, solar electri_cation, irrigation and irrigation infrastructure and sugar plants.
One hundred and eighty nine LOCs, covering 75 countries in Africa, Asia, CIS, Europe and
Latin America, with credit commitments aggregating US$ 10.03 billion are currently
available for utilisation, while a number of prospective LOCs are at various stages of
negotiation.
BUILDING EXPORT COMPETITIVENESS
The Bank operates a range of financing programmes aimed at enhancing the export
competitiveness of Indian companies. A variety of financing services are o_ered to
Export-Oriented Units importers, and for overseas investment by Indian companies. The
financing programmes cater to the term loan requirements of Indian exporters for financing
their new projects, expansion, modernization, purchase of equipment, R&D, overseas
investments and also the working capital requirements. During 2013-14, Exim Bank
sanctioned loans aggregating Rs. 225.54 billion under programmes for enhancing export
competitiveness. Disbursements amounted to Rs. 207.70 billion under these programmes.
(For more details, please write to: cbg@eximbankindia.in)
Loans to Export Oriented Units
During the year, the Bank approved term loans of Rs. 47.39 billion to 42
export-oriented units. Disbursements amounted to Rs. 36.55 billion. Under the Production
Equipment Finance Programme, 15 exporting companies were sanctioned Rs. 5.35 billion for
financing acquisition of production equipment. Disbursements amounted to Rs. 2.22 billion.
Five companies were sanctioned long-term working capital loans aggregating Rs. 3.05
billion. Disbursements amounted to Rs. 2.69 billion.
Technology Upgradation Fund Scheme (TUFS)
Exim Bank is one of the nodal agencies appointed by GOI, Ministry of Textiles, to
establish and approve the eligibility of projects under TUFS, and release subsidy directly
to the approved projects. As on March 31, 2014, the Bank has accorded approval for 206
projects with aggregate cost of Rs. 160.02 billion. Loans approved and disbursed
aggregated Rs. 52.83 billion and Rs. 31.91 billion respectively. The Bank’s
assistance under TUFS to the textile industry is spread across various segments in textile
manufacturing and covers several states in India.
Overseas Investment Finance Programme
The Bank has a comprehensive programme covering equity finance, loans, guarantees and
advisory services, to support Indian outward investment. During the year, 55 corporates
were sanctioned funded and non-funded assistance aggregating to Rs. 78.59 billion for part
financing their overseas investments in 22 countries. The investments supported were Iron
ore project in Canada, food and pharmaceutical packaging in Germany, manufacturing
operations in Singapore, Italy, USA, The Netherlands and Germany, oil exploration assets
in Ecuador, automotive components manufacturing in Italy.
So far, Exim Bank has provided finance to 494 ventures set up by 391 companies in 80
countries. Aggregate assistance extended by the Bank to support overseas investment by
Indian corporates amounts to Rs. 371.39 billion covering various sectors including
pharmaceuticals, home furnishings, readymade garments, construction, paper & paper
products, textiles & garments, chemicals & dyes, computer software &
IT, engineering goods, natural resources (coal & forests) metal & metal processing
and agriculture and agro-based products.
FINANCE FOR IMPORTS
The Bank also selectively undertook finance towards Imports under Bulk Import Finance
Programme. Sanctions and Disbursements amounted to Rs. 25.50 billion and Rs. 19.52
billion, respectively. Under Import Finance Programme, 10 companies were sanctioned
term loans aggregating Rs. 13.24 billion and disbursements aggregated Rs. 16.65 billion.
STANDBY LETTERS OF CREDIT / LETTERS OF CREDIT:
To facilitate the transactions of the Export-Oriented Units, the Bank issues LCs mainly
for imports financed by the Bank. During the year, the Bank opened 179 LCs of Rs. 18.41
billion. The Bank also handles negotiation/collection of export documents. The bank
handled 2718 export documents worth Rs. 58.55 billion. The Bank’s aggregate non-funded
portfolio, comprising Guarantees, LCs & SBLCs, as on March 31, 2014, stood at Rs.
94.26 billion as against Rs. 77.26 billion as on March 31, 2013, representing a growth of
22 per cent.
II. EXIM BANK AS FACILITATOR OF EXPORTS
GRASSROOTS INITIATIVES
The Bank, through its grassroots initiatives, envisages supporting globalisation of
enterprises based out of rural India. The programme seeks to address the needs of
relatively disadvantaged sections of society while creating expanded opportunities for
traditional craftspersons and artisans, and rural entrepreneurs of the country. The
Bank has consciously sought to establish, nurture and foster various institutional
linkages and has entered into formal cooperation arrangements with select broad-based
agencies in order to directly reach out to the artisans, by helping in capacity-building,
technological up-gradation, quality improvement, market access and training. (For more
details, please write to grid@eximbankindia.in )
During the year, the Bank provided support to a Gujarat based Trust, which provides
home-based livelihood opportunities to tribal artisans of Eastern Gujarat and helps
address the issue of migration. The interventions by the Bank are aimed at financing the
establishment of Common Facility Centre (CFC). Intervention in the form of financial
support was also provided to a Belgaum, Karnataka based organization which works with
nearly 700 producers, mostly the rural poor women in semi-arid and drought prone villages
of Belgaum district. The support was provided for financing working capitalrequirements of
the organization and for purchasing additional dyeing and weaving equipments for its CFC.
Similar support was provided to an organization working with nearly 5000 artisans in
Srikalahasti, Andhra Pradesh. The Bank also provided working capital support to an Odisha
based organization working with more than 2000 tribal artisans belonging to socially
deprived communities on arts & crafts development. A small workshed was also
constructed for tribal women artisan for assembling tribal jewellery parts. During the
year, the Bank also provided financial support to two emerging, technology-oriented
organizations under the aegis of IIT Madras Rural Technology and Business Incubator
(RTBI).
MARKETING ADVISORY SERVICES
TheBankplaysapromotionalroleandseekstocreateandenhanceexport capabilities and
international competitiveness of Indian companies through its Marketing Advisory Services.
The Bank provides assistance to Indian firms in their globalisation eflorts by locating
overseas distributor(s)/ buyer(s)/partner(s) for their products and services. The
Bank leverages its international standing, in-depth knowledge and understanding of the
international markets and well-established institutional linkages, coupled with its
physical presence, to support Indian companies in their marketing initiatives on a success
fee basis.
(For more details please write to mas@eximbankindia.in)
During the year, the Bank signed mandates with 31 companies to assist in marketing of
their products and services. Over 80 orders in domestic as well as overseas markets were
generated for various products. The success stories include placement of Readymade
garments such as sarees and stoles with a multi-brand retailer in major cities. Orders
were also generated for Mango Pulp in the United Kingdom, Diwali Diyas in Singapore and
supply of sets and backdrop for wedding accessories in France. The Bank also supported and
assisted in order placement of handicraft items such as Handmade Paper products, Madhubani
Paintings, Bidar Artefacts, Handicrafts from Gujarat, Wood Carvings & Lacquerware,
Dhokra Metal castings & Tribal Jewellery, Coconut handicrafts, Jute based handicrafts,
Warli paintings, Gond painting, Wooden paintings, marble artefacts, files, folders and
stationery items.
Besides product placement, Indian companies providing innovative products & niche
services were also assisted in partnerships. The Bank assisted a Bangalore based medical
diagnostic equipment company - Forus Healthcare in partnering for their innovative product
3 nethra in the markets of Africa and Iran. Sundaram Clayton was also assisted with
tying up with a US based Thermal Management Technology Company, Modine, for manufacturing
and supply of aluminium castings. The Bank assisted Indian companies and organizations in
long-term tie ups with domestic retail chains for supplying select products. Jharkhand
Silk Textile and Handicraft Development Corporation Ltd. (Jharcraft), a Ranchi based
organization, partnered with an Indian garments retail chain for placement of their
products with assistance of Exim Bank.
EXIM BANK’S PRESENCE IN MYANMAR
To bolster bilateral trade and investment between India and Myanmar, the Bank opened
its eighth overseas Representative Office in Yangon, Myanmar, becoming the first Exim Bank
to set up its operations in Myanmar. With its presence in Yangon, the Bank will now focus
on further enhancing India’s bilateral trade and investment links with Myanmar, with
which India shares rich historic, cultural, social and economic ties.
TREASURY
The Bank’s integrated treasury handles fund management functions including
investment of surplus funds, money market and forex operations and securities/ equity
trading. The Bank has segregated front/middle/back-office functions and has set up a
state-of-the-art dealing room. The range of products offered by the Bank’s treasury
to its borrowers includes foreign exchange deals, collection/negotiation of export
documents, issuance of inland/foreign letters of credit/ guarantees and structured loans.
The Bank uses financial derivative transactions for raising cost eflective funds and
hedging its balance sheet exposures, with an objective of reducing market risks. The Bank
is a member of the Indian Financial Network (INFINET). The Bank deals through the
Negotiated Dealing System – Order Matching segment (NDS-OM) of the RBI, which
provides the electronic dealing platform for trading in GOI securities. The
securities/foreign exchange transactions of the Bank are routed through the Guaranteed
Settlement Facility provided by the Clearing Corporation of India Ltd. (CCIL). The Bank is
an active member of Collateralised Borrowing & Lending Obligation segment of CCIL. The
Bank is also a member of Clearcorp Order Matching System, the Repo Dealing System of CCIL.
Through connectivity between INFINET and the Bank’s network to achieve straight
through processing for treasury applications. The Bank has centralised SWIFT
facility on SWIFT Alliance Access.
III. EXIM BANK AS PROMOTER OF EXPORTS
RESEARCH AND ANALYSIS
Exim Bank’s Research & Analysis Group offiers a range of research insights on
aspects of international economics, trade and investment through qualitative and
quantitative research techniques. The research work carried out in the Group under the
broad classification of regional, sectoral and policy related studies, are published in
the form of Occasional Papers, Working Papers, Books, etc. The research studies undertaken
during the year are:
• Enhancing India's Trade Relations with Africa: Focus on Select Countries;
• The Effects of Financial Openness: An Assessment of the Indian Experience;
• Comparison of Labour Laws: Select Countries;
• Enhancing India's Trade Relations with LAC: Focus on Select Countries;
• Enhancing India - Myanmar Trade and Investment Relations: A Brief Analysis;
• India’s Trade and Investment Relations with Cambodia, Lao PDR, Myanmar,
Vietnam (CLMV): Enhancing Economic Cooperation;
• Potential for Enhancing India's Trade with Russia: A Brief Analysis;
• Indian Ceramic Industry: Scenario, Challenges & Strategies;
• Indian Horticulture: Imperatives to Enhance Trade from India;
• India’s Trade and Investment Relations with Gulf Cooperation Council (GCC):
Strengthening Economic Ties;
• Potential for Enhancing India's Trade with France: A Brief Analysis;
• Potential for Enhancing India's Trade with United Kingdom: A Brief Analysis;
• India’s Hi-Tech Exports: Potential Markets and Key Policy Interventions;
• Potential for Enhancing India's Trade with Germany: A Brief Analysis; and
• Enhancing India's Trade Relations with Southern African Development Community
(SADC): A Brief Analysis.
(All the above studies are freely downloadable from the Bank's website)
INFORMATION AND ADVISORY SERVICES
The Bank provides a wide range of information, advisory and support services, which
complement its financing programmes. These services are provided on a fee basis to Indian
companies and overseas entities. The scope of services includes market-related
information, sector and feasibility studies, technology supplier identification, partner
search, investment facilitation and development of joint ventures both in India and
abroad.
MULTILATERAL FUNDED PROJECTS OVERSEAS (MFPO)
The Bank provides a package of information and support services to Indian companies to
help improve their prospects for securing business in projects funded by the World Bank,
Asian Development Bank, African Development Bank (AfDB) and European Bank for
Reconstruction and Development. Projects funded by such Multilateral Funding Agencies,
present attractive business opportunities for suppliers, contractors and consultants.
Recognising the potential for increasing effective participation by Indian firms in such
multilateral funded projects, Exim Bank has been organising seminars in association with
the Multilateral Agencies.
The Bank has organized a series of interactive seminars on Business Opportunities in
projects funded by the World Bank Group at New Delhi, Mumbai and Hyderabad. The Bank in
association with the AfDB Group also organised a series of seminars on business
opportunities in AfDB funded projects at New Delhi, Hyderabad and Mumbai. The
series of seminars have enabled sharing of information on the nature of business
opportunities for suppliers, contractors and consultants under multilateral funded
projects, and outlined learnings for Indian companies for effective participation in such
projects. Exim Bank and AfDB Group have also signed an agreement for co-financing projects
in Africa. The agreement envisages joint financing of projects (priority being given to
support projects of small and medium enterprises) in regional member countries of AfDB
Group.
During the year, the Bank also disseminated information on numerous overseas business
opportunities covering various sectors including transportation, infrastructure,
construction, telecommunications, energy, education, and information technology.
EXPERIENCE SHARING
The Bank’s experience in evolving as an institution supporting international trade
and investment, in addition to functioning as an export credit agency in a developing
country context, is of particular relevance to other developing countries. The Bank has
been sharing its experience and expertise by undertaking advisory assignments. Exim Bank
also shares its experience and expertise through provision of on-site exchange of
personnel programmes aimed at providing a first-hand experience to the employees of its
institutional partners.
The Bank was commissioned by the Commonwealth Secretariat London, to assist the Sri
Lanka Export Credit Insurance Corporation (SLECIC) to review its operating policies and
suggest new products while recommending measures to enhance the overall export financing
framework in Sri Lanka.
Exim Bank, along with ITC Geneva, undertook a consultation mission for the Government
of Myanmar for developing a National Export Strategy. Exim Bank offcials served as experts
for sectors such as textiles and garments, rice, trade information, and trade promotion.
The experts shared the developmental model of India to develop exports in Myanmar,
particularly in these sectors.
Eximius Centre for Learning
Eximius Centre (EC) continued its capacity building activities for this year as well.
During the year EC organized the following programmes:
• "Doing Business with USA", "Doing Business with Argentina",
"Trade and Business Opportunities with Vietnam" were organized in collaboration
with Federation of Indian Exporters Organisation (FIEO) for the benefit of exporting
community;
• Knowledge-building sessions were conducted in collaboration with FIEO which
included sessions on "Understanding REACH", "Central Excise and Service Tax
and Financial Products on International Trade", "Payment Terms in International
Trade and UCP-600".
• A special programme on "Strategy on Services Sector" was organized in
collaboration with the Ministry of Finance at Bangalore, Chennai, Cochin, Hyderabad,
Kolkata, Mumbai and New Delhi to understand the issues faced by Services Exporters;
• Workshops were arranged for ITS Probationary officers of DGFT and Income Tax
officers;
• In association with Visvesvaraya Trade Promotion Centre an Export Management
Training Programme was organised in Bangalore targeting entrepreneurs, who wish to venture
into international trade , was organized in Bangalore.
INSTITUTIONAL LINKAGES
BRICS Interbank Cooperation Mechanism
The Bank has fostered a network of alliances and institutional linkages with
multilateral agencies, export credit agencies, banks and financial institutions, trade
promotion bodies, and investment promotion boards to help create an enabling environment
for supporting trade and investment. The Bank entered into two cooperation Agreements with
four major development banks of the BRICS countries (Brazil, Russia, China, and South
Africa), in the presence of Heads of States/ Governments of the BRICS countries held in
Durban, South Africa during the BRICS Summit 2013. The two Agreements signed during the
occasion are: (i) BRICS Multilateral Infrastructure Co-financing for Africa; and (ii)
BRICS Multilateral Cooperation and Co-financing Agreement for Sustainable Development.
These two Agreements are expected to enhance cooperation among BRICS development banks and
to significantly promote intra-BRICS trade.
Exim Bank of India is the nominated member development bank under the BRICS Interbank
Cooperation Mechanism. Other nominated member development banks from BRICS nations are:
Banco Nacional de Desenvolvimento Economico e Social – BNDES, Brazil; State
Corporation Bank for Development and Foreign Economic Affairs – Vnesheconombank,
Russia; China Development Bank Corporation, and the Development Bank of Southern Africa.
The Bank has been participating in the Annual Meetings of the BRICS Financial Forum, under
the BRICS Interbank Cooperation Mechanism.
Asian Exim Banks Forum
The Nineteenth Annual Meeting of the Asian Exim Banks Forum (AEBF) was held in
Wuyishan, China during October 2013.
The theme for the meeting was "Reinforcing Regional Cooperation and Connectivity
in a Challenging Global Environment". The meeting provided a platform for exchange of
ideas and information amongst the members towards reinforcing regional cooperation among
the Asian economies, in the present challenging global economic environment. The Meeting
was hosted and chaired by The Export-Import Bank of China. The meeting had representatives
at the highest level from all member countries, viz., Australia, China, India, Indonesia,
Japan, Korea, Malaysia, Philippines, Thailand and Vietnam. The meeting also had
participation from Asian Development Bank (ADB), the multilateral financing institution,
as a permanent invitee. Vietnam was admitted as a regular member to the Forum at the
Annual Meeting.
The AEBF seeks to enhance economic cooperation and forge stronger linkages among its
member institutions, thereby fostering a long-term relationship within the Asian Exim
Banks’ community. Exim Bank of India would be hosting the Twentieth Annual Meeting of
AEBF in November 2014. The theme of the AEBF-2014 is "Evolving Role & Relevance
of Asian Exim Banks – Path to 2020".
Global Network of Exim Banks and Development Finance Institutions
The Global Network of Exim Banks and Development Finance Institutions (G-NEXID) was set
up in Geneva in March 2006 through the Bank's initiative, under the auspices of UNCTAD.
With the active support of a number of other Exim Banks and Development Finance
Institutions from various developing countries, the network has endeavoured to foster
enhanced South-South trade and investment and cooperation.
Memoranda of Understanding / Co-operation (MoU / MoC)
The Bank proactively supports Small and Medium Enterprises (SMEs) in their
internationalisation efforts, through customised research activities, and marketing
advisory services. To enhance business and investment opportunities and facilitate better
cooperation between companies from India and United Kingdom (UK), the Bank and UK Trade
and Investment (UKTI) have signed a Memorandum of Cooperation (MoC), on the occasion of
the Sixth UK-India Economic and Financial Dialogue. Exim Bank and UKTI agreed to exchange
information to boost cooperation particularly between SMEs from India and the UK, helping
them locate suitable joint venture and trade partners. In order to promote the realisation
of business opportunities and facilitating trade and investment among the SMEs in India
and abroad, the Bank has also signed an MoC with Small & Medium Business Development
Chamber of India.
During the year, the Bank entered into an MoC with the Women on Wings (WoW), a
non-profit organization based in Austerlitz, the Netherlands, working with the objective
of improving the income of women in developing countries. WoW, which plans to create one
million jobs for women in rural India by 2018, assists Indian enterprises by providing
consultancy and business development, investing through human capital and providing good
networking support for marketing their produce.
The Bank has signed an MoU with the International Trade Centre (ITC) in Geneva which is
intended to strengthen collaboration between ITC and Exim Bank to help increase enterprise
and sector competitiveness and promote capacity-building in trade intelligence, including
market analysis and research. The cooperation will also help foster trade support networks
and business linkages between India and other countries, and improve the business
environment. ITC and Exim Bank will also cooperate on the project on Supporting India's
Trade Preferences for Africa (SITA), which will run from this year to 2020 for promoting
exports from _ve East African countries - Ethiopia, Kenya, Rwanda, Tanzania and Uganda -
to India through investment and skills transfer from the Indian side.
In order to augment sustainable employment opportunities and exports from rural India,
the Bank actively supports exports from rural grassroots business enterprises by providing
them an array of services including financial support, export marketing and product
development. The Bank entered into an MoU with the National Centre for Design and Product
Development (NCDPD) with an objective to promote cooperation in assisting manufacturers of
Indian handicraft items in their design and product development to cater to the needs of
changing taste and design concepts of international buyers. The broad areas of
cooperation comprise organizing task based workshops for companies/artisans, providing
faculty support, providing training on design, product development, skill development,
technology up-gradation, assisting in creating export capability and conducting joint
studies and research in areas of mutual interest.
An MoU was also signed with the World Craft Council (WCC). The objective was to
co-operate in areas through which Indian grassroots / social enterprises and crafts could
be supported to help them reach international markets. The broad areas of cooperation
includes coordination and development of Arts and Crafts in India, Organizing the
International Craft Film Festival and International Craft Exhibition where artisans can
showcase their arts and crafts which will feature demonstrations and exchange of ideas and
techniques and help the Indian craftsperson to gain access to new markets for Indian
Crafts.
Workshops
Workshops organized by the Bank at the grassroot level are mentioned below:
The Bank organized a 10 day workshop with Pochampally Handloom Park Limited (PHPL) for
Product Development during March 2014, in association with National Centre for Design and
Product Development (NCDPD). The objective of the workshop was to generate quality
products ready to tap international markets and handholding in terms of marketing,
packaging, brand building and generating business for the weavers and artisan’s
community. Over 53 weavers attended the workshop.
The Bank in partnership with NCDPD also organized a Craft Exchange Programme between
India and Zimbabwe at the Bamboo and Cane Development Institute in Agartala. Fifty
artisans participated and exchanged ideas, out of which 25 were from India and 25 from
Zimbabwe. The focus of the programme was to demonstrate unique designs & patterns and
sharing of processing & finishing techniques of their craft in the field of bamboo
eco-friendly crafts, basketry and other allied products.
A "Design Development and Training Workshop" for 60 women master artisans in
Golaghat, Assam, was arranged with the objective of developing utility based prototypes
for Handloom products.
A training programme was organized for 50 artisans based in Lakkavanhally and
Bengaluru, Karnataka for developing natural fiber based hand crafted utility products.
About 20 marketable prototypes were developed during the course of the workshop.
Awards for Excellence
Export-Import Bank of India and Confederation of Indian Industry (CII) joined hands, in
1994, to promote ‘excellence’ among Indian companies through the ‘CII-Exim
Bank Award for Business Excellence’ for best Total Quality Management (TQM) practices
adopted by an Indian company. The Award is based on the European Foundation for Quality
Management (EFQM) model.
The award, which is an annual ceremony, is a prestigious and befitting industry
recognition given to a company after being assessed by panels of trained assessors through
a transparent and rigorous methodology based on the EFQM Model. In 2013, there were 40
companies which received varying levels of recognition. Bosch Ltd, Diesel Systems business
-- Nashik was adjudged as the winner of the CII-Exim Bank Award for Business Excellence.
Bosch Ltd, Diesel Systems business – Jaipur and Godrej Locking Systems and Solutions
bagged the CII-EXIM Bank Prize for Business Excellence, while Indelox Services won the
Prize in the Small and Medium Businesses (SMBs) category. Godrej Locking Systems and
Solutions has also been conferred with the Chairman’s Special Commendation for having
won the Prize for the second year in a row.
The International Economic Research Award was instituted by the Bank in 1989. The
objective of the award is to promote research in international economics, trade,
development, and related financing, by Indian nationals at universities and academic
institutions in India and abroad. The Award consists of a sum of Rupees Two Hundred and
Fifty Thousand and a citation. The winner for the year 2013 is Dr. Anwesha Aditya,
for her doctoral thesis titled "Trade Liberalization, Product Variety and
Growth". Dr. Aditya received her degree in 2013 from Jadavpur University, Kolkata.
Dr. Harendra Kumar Behera had won the award for the year 2012.
Exim Bank’s Commencement Day Annual Lecture series, instituted in 1986 to
commemorate the commencement of the Bank’s business, has earned recognition as an
important milestone in contributing to the debate and discussions on contemporary trade
and development issues impacting the global economy. Prof. Kishore Mahbubani, Dean and
Professor in the Practice of Public Policy at the Lee Kuan Yew School of Public Policy of
the National University of Singapore delivered the Bank’s Twenty-Ninth Commencement
Day Lecture for 2014. Professor Mahbubani spoke on the topic "The Great Convergence:
Can India Make It?" Dr. Dilip M. Nachane, Member, Economic Advisory Council to the
Prime Minister was the Guest of Honour for the lecture. In 2013, Professor Pranab Bardhan,
Professor of Graduate School, Department of Economics, University of California, Berkeley,
had delivered the Lecture on the topic, 'The Theory of Trade and Development from the
Indian Point of View.'
IV. EXIM BANK'S INSTITUTIONAL INFRASTRUCTURE
HUMAN RESOURCES MANAGEMENT
The Bank’s staff, comprising management graduates, chartered accountants, bankers,
economists, legal, library and documentation experts, engineers, linguists, human
resources and IT specialists, numbered 295 on March 31, 2014. The professional team of
249, is supported by a set of skilled and highly committed administrative officers.
The Bank - a "learning organisation", organizes various group training
programmes, facilitating continuous upgradation of skills of its staff. Officers are also
nominated for customised training programmes and seminars, aimed at developing and
enhancing skill sets for handling highly specialised portfolios and enabling them to keep
abreast with the latest developments in the field. During 2013-14, 232 officers attended
training programmes and seminars on various subjects relevant to the Bank’s
operations, ranging from working capital management & interpretation of financial
statements, project finance, credit risk, derivatives & risk management, to
interpersonal communication & organizational effectiveness, leadership development for
corporate excellence, business communications and IT.
REPRESENTATION OF SCHEDULED CASTES, SCHEDULED TRIBES AND OTHER BACKWARD CLASSES
Of the total staff of 295 in the Bank’s service as on March 31, 2014, there were
29, 20 and 38 Scheduled Caste, Scheduled Tribe and Other Backward Class staff members,
respectively. Training in Information Technology and other areas such as effective
presentation and communication skills, was provided to these staff members. The Bank
continues to grant scholarships for scheduled caste and scheduled tribe and other backward
class students at the Indian Institute of Foreign Trade (IIFT), New Delhi, and has also
instituted scholarships for reserved category students of the Kalinga Institute of
Industrial Technology (KIIT) University, Orissa; the North Eastern Regional Institute of
Science and Technology (NERIST), Arunachal Pradesh; the Delhi School of Economics and the
Jawaharlal Nehru University, New Delhi.
INTERNAL COMPLAINTS COMMITTEE UNDER "THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013"
In compliance with the Act, the Bank has constituted a Complaint Committee for
considering complaints of sexual harassment of women at workplace as deffined under the
Act. The Bank considers the safety of its employees to be very important and seeks to
provide a safe working environment at the workplace.
The committee held regular meetings even though there were no complaints. The committee
also initiated awareness sessions for all employees at all offces of the Bank. Awareness
was also spread through the Bank’s intranet and in-house magazine.
PROGRESS IN IMPLEMENTATION OF THE OFFICIAL LANGUAGE POLICY
During 2013-14, the Bank continued its efforts to strengthen the implementation of the
Official Language Policy. In compliance with the provisions of Section 3 (3) of the
Official Language Act, circulars, press releases, notices and reports were issued in
bilingual form. In compliance with Rule 5 of the Official Language Rule 1976, letters
received in Hindi were responded to in Hindi.
Annual Programme for FY 2013-14, received from the Department of Official Language,
Ministry of Home Affairs was implemented through an action plan, prepared to achieve
targets on various parameters. Towards this end, Official Language Implementation
Committees at Bank’s Head Office and Regional offices reviewed and monitored the
progress on quarterly basis. The Bank's Head Office was inspected by the Committee of
Parliament on Official Language in September 20, 2013. The Committee appreciated the
overall efforts of the Bank and commended the Bank for implementation of Rajbhasha in the
Bank.
Hindi workshops were organized to impart training in Hindi to officers of the Bank, as
per the targets. Use of Unicode was encouraged and officers were given training to use
software/ facilities available for working in Hindi on computers.
The Bank has actively participated in the meetings of Town Official Language
Implementation Committees (TOLIC) / State Level Bankers’ Committees / Official
Language Implementation Committee of the Department of Financial Services and Official
Language Implementation Committee of Reserve Bank of India for Banks and Financial
Institutions, and implemented the decisions taken in these meetings.
A scheme offering incentives aimed at encouraging officers to learn and use Hindi in
their day-to-day work is in place in the Bank. The Bank’s in-house magazine
‘Eximius’ includes a Hindi section. Officers were encouraged to contribute
articles in Hindi and best articles were rewarded. The Bank has increasingly encouraged
its officers to participate in interbank Hindi competitions organized under the aegis of
TOLICs and RBI. Hindi training needs of the officers were identified and they were
nominated for training for attaining working knowledge of Hindi.
In pursuance of the Government’s directives, a Hindi fortnight commencing from
September 1, 2013 was celebrated in the Bank. The Bank maintains its corporate website in
both Hindi and English. Information related to business and operations of the Bank was
updated/ made available on Hindi website for wider dissemination. Help and reference
material along with useful information for use of staff members were made available on the
Bank’s intranet.
Apart from literature on the Bank’s operations and procedures, select Occasional
Papers were translated into Hindi. Hindi versions of all the issues of ‘Eximius:
Export Advantage’, a quarterly publication of the Bank, were published under the
title ‘Eximius: Niryaat Laabh’. Issues of ‘Agri Export Advantage’, a
bi-monthly publication of the Bank, were also published in Hindi under the title ‘Krishi
Niryaat Laabh’.
In pursuance of Government policy regarding progressive use of Hindi, new Hindi books,
particularly on foreign trade, commerce, finance, banking, information technology and
other subjects were added to the Bank’s library (Knowledge Centre).
The Bank’s efforts for accelerating the use of Hindi for Official purposes
received recognition from various authorities, such as TOLIC, Mumbai, constituted under
the auspices of Department of Official Language, Ministry of Home A_airs, GOI, which
awarded the second prize to the Bank’s Head Office for commendable performance in
implementing Hindi among all Financial Institutions for the year 2012-13. The Bank’s
in-house journal ‘Eximius’ was awarded a prize for the fourth time under
bilingual magazine category amongst 32 participating Banks / Financial Institutions, by
Reserve Bank of India for the year 2012-13. Bank’s news bulletin "Krishi
Niryaat Laabh" was awarded the First prize the under the Indian language publications
category by Association of Business Communicators of India (ABCI).
INFORMATION TECHNOLOGY
The Bank continued its initiatives in enhancing the use of knowledge management tools,
communication across its various constituents for better sharing of information, user
empowerment and system intelligence capabilities. The Bank is a member of INFINET and
digitally participates in the market through industry-wide systems initiated by regulatory
and industry institutions such as RBI, CCIL, Credit Information Bureau (India) Ltd. and
SWIFT.
Systems were supported and upgraded in various areas including those of operational
business intelligence; bank-wide system; document management and workflow; networks;
infrastructure; and security. The Bank strengthened its practices and procedures in
compliance with international standards for IT Governance.
The Bank’s corporate website (www.eximbankindia.in) was revamped during the year.
The information on the Bank is now disseminated in an organised manner on the various
research activities conducted by the Bank and on business opportunities and leads in
international trade. Besides, it features relevant information on the Bank’s various
lending programmes and information and advisory services.
The Bank’s agro-portal (www.eximbankagro.in) continues to provide product-wise
information and advisory services. The Bank is a member of the Asian Exim Banks Forum and
G-NEXID and the Bank maintains websites for the two fora.
The integrated Finacle software solution which has recently been implemented has
improved e_ciency and MIS reporting. Business Intelligence system has been integrated
fully online with Finacle system and various alerts are being sent as per specific
requirements of core users, for better management and servicing of loan assets. The Bank
has introduced Real Time Gross Settlement (RTGS) for better efficiency.
CORPORATE GOVERNANCE
Exim Bank ensures transparency and integrity in communication and makes available full,
accurate and clear information to all concerned. The Bank is committed to and is
continuously striving to ensure compliance with best practices of corporate governance as
relevant to the Bank. The Bank has established a framework of strategic control and is
continuously reviewing its effcacy. Business/financial performance related matters,
analytical data/information are reported to the Board/Management Committee of the Board
(MC) periodically for review. The Bank has put in place a Board approved Compliance Policy
and a senior Official has been made responsible in respect of compliance issues with all
applicable statutes, regulations and other procedures, policies as laid down by the
GOI/RBI and other regulators and the Board, and reporting deviation if any to the Audit
Committee (AC). The Bank’s Board held five meetings (during the FY 2013-14)
and the MC held eight meetings.
AUDIT COMMITTEE
The Bank’s Audit Committee (AC) of the Board provides direction to the total audit
function of the Bank in order to enhance its effectiveness as a management tool and to
follow-up on all issues raised in the statutory/external/internal/concurrent audit reports
and RBI inspection reports. The AC reviews the annual financial statements every year
before submission of the same to the Board. AC also periodically reviews the functioning
of the Bank’s Fund Management Committee (CFMC) and Asset-Liability Management
Committed (ALCO). The Audit Committee met 6 times during the FY 2013-14.
ASSET-LIABILITY MANAGEMENT (ALM)
The ALCO of the Bank oversees the monitoring and management of market risk with support
from the Bank’s mid-office. Liquidity/interest rate risks are managed by ALCO as per
the comprehensive ALM/ liquidity policies approved by the Board. The role of ALCO
includes, inter-alia, reviewing the Bank’s currency-wise structural liquidity and
interest-rate sensitivity positions vis-a-vis prudential limits prescribed by the
RBI/Board, monitoring results of periodical stress testing of cash flows and identifying a
suitable ALM strategy based on the quantum of interest-rate risk as measured through a)
assessment of sensitivity of net-interest income; and b) sensitivity of economic value,
using duration-gap analysis, to interest rate movement. Regular stress testing of
currency-wise liquidity position is carried out and a Contingency Funding Plan is drawn up
periodically to estimate the worst-case fund shortfall in each currency. Value-at-risk is
computed for the Bank’s held-for-trading and available-for-sale portfolio of GOI
securities. FMC decides on the investments/disinvestments and raising of resources as per
the Fund Management/Resources Plan approved by the Board at the beginning of each
financial year and reviewed during the year. The Audit Committee & Management of the
Board periodically review the functioning of ALCO/FMC.
RISK MANAGEMENT
The Bank has an Integrated Risk Management Committee (IRMC), which is independent of
operating groups and reports directly to the top management. The IRMC reviews the
Bank’s position in regard to various risks (portfolio, liquidity, interest rate,
off-balance sheet and operational risks), and oversees the operations of the ALCO, the FMC
and the Credit Risk Management Committee (CRMC), all of which have cross-functional
representation. While ALCO deals with issues relating to ALM policy and processes and
analyses the overall market risk (liquidity, interest-rate risk and currency risks) of the
Bank, CRMC deals with credit policy and procedures and analyses, manages and controls
credit risk on a Bank-wide basis. Loan proposals are independently analysed by the Chief
Credit Risk Officer of the Bank, who evaluates the risk profile of the proposals and
provides inputs to the approving authority. The Bank has in place an advanced Credit Risk
Model (CRM) that enables a broad-based credit appraisal decision support (by incorporating
a range of qualitative as well as quantitative parameters/ measures) and superior
portfolio management capability. The Bank also undertakes an annual review of the Business
Continuity & Disaster Recovery Plans of all its offices. Each of the plans is vetted
for completeness with regard to critical Business Continuity Risk Events and safeguards in
place, for mitigating the impact thereof.
CREDIT MONITORING GROUP
A dedicated Loan Administration Group takes pro-active steps towards loan recovery as
per the Board-approved Loan Monitoring and Recovery Policy and towards preventing slippage
of standard assets into non-performing assets. A system of ABC classification of loan
accounts (including system for monitoring credit rating migration) is in place. A monthly
review of non-performing assets is done by a separate Committee. An independent Screening
Committee, comprising a retired judge and two eminent persons with rich experience in the
fields of law and banking, has been constituted for examining and recommending all
settlement proposals and assignment to Asset Reconstruction Companies, for consideration
by the Board.
KYC, AML AND PML MEASURES OF THE BANK
The Bank has a policy approved by the Board on ‘Know your Customer (KYC)', 'Anti
Money Laundering (AML)' and Prevention of Money Laundering (PML)’ measures. The
Policy conforms to RBI guidelines in the matter. The KYC, AML and PML policy covers (a)
Customer Acceptance Policy; (b) Customer Identification Procedure; (c) monitoring of
transactions (d) Risk Management; and (e) KYC of existing customers. The Bank is currently
referring to the latest caution list issued by RBI.
The Bank also has access to the Bankers Accuity Database, an online database service, a
product of one of the world's leading business publishers, Reed Business Information,
which is a part of the Reed Elsevier Group. It is a compliance database for Bankers
Almanac. Accuity's enhanced Global WatchList is a comprehensive collection of caution
lists from all major sanctioning bodies, law enforcement agencies and financial regulators
worldwide. All the customers of the Bank are subjected to KYC standards, which establish
the identity of the natural/legal person and those of the ‘beneficial owners’.
Implementation of KYC policies and procedures covers identi_cation of term deposit
holders, correspondent banks, recruitment of new sta_ members, and counterparty
identification with regard to treasury transactions. The Bank obtains data required for
ensuring compliance by its counterparty banks with regard to KYC norms through a suitable
questionnaire.
The Bank also maintains information in respect of certain transactions in accordance
with the procedure and manner as may be specified by RBI and SEBI, as the case may be,
from time to time and the records are maintained for a period of ten years from the date
of the transaction. The Bank has appointed a Principal Officer responsible for its KYC,
AML and PML measures. The KYC, AML and PML Policy is on the Bank’s website.
FAIR PRACTICES CODE FOR LENDERS
The Bank has in place, a Board approved policy on Fair Practices Code for Lenders
framed in line with RBI guidelines. The policy is reviewed every year.
RIGHT TO INFORMATION
Exim Bank of India, as a public authority as defined in the Right to Information Act,
2005, is compliant with the Act. Citizens of India may apply for information under the
provisions of the Act by communicating the same to the Central Public Information Officer
of the Bank or any of the Assistant Public Information Officers of the Bank as mentioned
on the website.
JOINT VENTURES
Global Procurement Consultants Limited (GPCL), was promoted by Exim Bank in 1996 as a
joint-venture company along with 11 other reputed private and public sector companies,
which have expertise in diverse fields, spanning various sectors of the economy. GPCL
provides project related advisory services, with particular focus on procurement and
capacity building, primarily for projects funded by multilateral agencies, in a number of
developing countries. The company caters to areas as diverse as Health, Education,
Agriculture, Mining, Transportation, Communication, Energy, Water Resources and other key
sectors. GPCL's services span all stages of the procurement cycle covering procurement
advice, procurement management, procurement review, performance review, provision of
support services, valuation exercises, financial advisory services and procurement
governance. GPCL recorded yet another year of profitable operations with a turnover of Rs.
53.57 million in 2013-14 and a pre-tax profit of Rs. 15.42 million.
During the year, the Bank formed a new joint venture, viz. Bharat Handloom Marketing
Company Ltd. (BHMCL) in association with the National Handloom Development Corporation
Ltd. and the Association of Corporations and Apex Societies of Handlooms. BHMCL has been
incorporated as a public limited company under the Companies Act, 1956 to carry out the
business of promotion and marketing of handloom and handicraft products both at the
domestic and global level.
PROJECT DEVELOPMENT COMPANY
The Bank plans to set up a Project Development Company in Africa, which will
essentially look to bringing infrastructure projects in Africa to a bankable stage and
facilitating exports from India to Africa. This is a new initiative of Exim Bank.
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