Chapter 6 exim bank

As per VNSGU Syllabus 2017-18

1. EXIM Bank Of I ndia

2. C ontent Introduction Origin of EXIM Bank Organisation Objectives Functions of EXIM Bank Financing programs

3. Introduction Export import bank of India is the premier export finance institution in India, established in march 1982 under Export- Import Bank of India Act September 1981. Since its inception, Exim Bank of India has been both a catalyst and a key player in the promotion of cross border trade and investment. Exim bank of India, over the period, evolved into an institution that plays an important role in partnering Indian industries, particularly the Small and M edium E nterprises

4. Contd.. Headquarters :- Mumbai, India Shri Yaduvendra Mathur , IAS, took charge as Chairman & Managing Director of the Bank for a tenure of three years, from February 2014 to February 2017.  Shri  David Rasquinha was appointed the Managing Director of Exim Bank from August 2017.

5. Origin of EXIM Bank Increase in trade opportunities in global markets Need for the country to enhance their domestic competitiveness Absence of any specialised institution to enhance foreign trade in country

6. Objectives For providing financial assistance to exporters 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 promote the country’s international trade.

7. Organisation Management Chairman and managing Director 5 Directors : Government of India 3 Directors : Scheduled Bank 4 Directors : Professionals/ Experts 1 Director nominated by RBI 1 Director nominated by IDBI 1 director nominated by ECGC ( Export Credit Guarantee Corporation ) Appointed by Government of India

8. Offices Domestic Offices Overseas Offices Ahemdabad Banglore Chandigarh Chennai Guwahti Hyderabad Kolkatta New Delhi Mumbai Pune Addis Ababa Dakar Dubai Durban London Singapore Washington D. C

9. Functions of EXIM Bank

10. Functions Contd.. OVERSEAS INVESTMENT: Exim Bank encourages Indian companies to invest abroad for, inter alia, setting up manufacturing units and for acquiring overseas companies to get access to the foreign market, technology, raw material, brand, IPR ( Intellectual property rights ) etc .  Project Finance/ Trade Finance :- This group handles the entire range of export credit services such as suppliers credit, pre-shipment Agri-business Group etc. T he group handles projects and export transactions in the agricultural sector for financing.

11. Functions Contd.. LINE OF CREDIT :- A Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects, equipment, goods and services from India. Exim Bank extends LOCs on its own and also at the command and with the support of Government of India . The Exim bank provides line of credit to foreign importers so that exports from India can increase. Under line of credit, exim bank will provide finance to the Central bank of the borrowing country which in turn will provide to the commercial bank and ultimately the credit will reach the importer. This kind of credit is safe as there is guarantee of funds at every stage. CORPORATE BANKING :- The Bank offers a number of financing programmes for Export Oriented Units (EOUs), importers and for companies making overseas investments.

12. Functions Contd.. BUYERS CREDIT :- Overseas buyers/importers can avail this facility for import of eligible goods and services from India on deferred payment terms.

13. Other Functions   Finance for Exports and Imports Finance on deferred basis: EXIM bank provides finance on deferred basis for importing capital equipment and other machinery. Lease Finance: It provides lease finance for importing capital equipment. Under  cross border leasing , the lessor may be in a foreign country, while the lessee will be in India. The EXIM bank helps the Indian lessee in obtaining the capital equipment on lease by making the lease payment in terms of foreign exchange. It also helps for import leasing, wherein both the lessor and lessee will be Indians but the equipment imported on lease may be from U.S. A or U.K. Contribution to Equity fund: The EXIM bank also contributes to the shares, debentures of Indian companies involved in exports. Export companies while raising capital, may issue shares which may be partly financed by EXIM bank. The bank may extend this facility as a temporary finance as it will not retain the shares permanently. As a part of investment policy or by way of portfolio investment, it may invest in the shares and debentures of companies involved in exports. Consultancy Services: The EXIM bank also provides technical, administrative and other assistance to exporters. Export projects are analyzed by the EXIM bank from the point of view of technical, managerial, marketing and financial feasibility. When it finds a project viable, on the above grounds, it will not hesitate to fund it. Apart from the above assistance, it is also providing discounting facilities for export bills. There is also export finance for computer software exports. The exporters are provided with market development assistance .

14. Thank you…!!!