EXIM bank

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					                                         EXIM Bank
Intro

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.




History :

Set up by an act of parliament in September 1981

Wholly owned by Govt. Of India

Commenced operations in March 1982




Facts

It has a board constituted of 16 directors including chairman, out of which 12 are directly
appointed by Govt. Of India

Its HO is in Mumbai and branches in 9 trade prominent cities of India like Delhi, Kolkata,
Chennai, Hyderabad, Pune, Banglore, Ahemdabad, Guwahati. Branches in other nation include
Washington DC, Singapore, Durban, London, Dubai, Dakar.
Objectives:

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

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




Range of Products and service:

Starting from

Pre shipment----post shipment---investment abroad---advisory services---import finance---
export product development---export production---export marketing
Value based services offered:

Advisory services, Knowledge Building, Information

These functions supplement financing program
Financing Programs include

   1) Export credit
          Lines of credit
          Buyer’s credit
          Supplier’s credit
          Pre/post shipment credit
   2) Import credit
          Import loan for capital goods
          Bulk import loan for raw materials
   3) Loans for exporting unit
          Term loan for expansion/diversification
          Term loan for overseas equity investment
          Term loan for export product development and marketing
          Direct Equity stake in Indian/Overseas ventures of exporting companies




Significance

       Over the past two decades, increasing numbers of contracts have been secured by
        Indian companies in west Asia, North Africa, Sub Saharan Africa, South and South east
        Asia, CIS and Latin America.
       Played Pivotal role in Exports of civil engineering projects, consultancy services, capital
        goods and transport vehicle.
       Supports two way investments and hence gives comprehensive support and financial
        availability to exporters and importers.
       Exim bank also facilitates joint investments by Indian and overseas company in third
        country markets.
       Very supportive to rural grassroots exporting units. It links rural industries to global
        markets.
Besides these our Exim bank has also acted as a consultant to many countries like Zimbabwe,
Malaysia, South Africa, etc to establish their respective Exim banks.

It also publishes News letters of varying interests in 10 language options