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India Exim Bank Reported 3X Growth in Profits in FY22

During FY 2021-22, Exim Bank on behalf of the Government of India sanctioned six Lines of Credit, aggregating US$ 1.13 billion, to support export of projects, goods, and services from India. 

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India Exim Bank’s Managing Director, Ms. Harsha Bangari, and Deputy Managing Director, Mr. N. Ramesh, announced the Bank’s results for the financial year 2021-22. Key highlights of the Bank’s performance during 2021-22 are as under:

FINANCIAL PERFORMANCE

Parameter

(A – K in ` Crore, L – N in %)

Performance in 2020-21Performance in 2021-22Growth over 2020-21
A.        Net Loan Portfolio1,03,8511,17,61913.26%
B.        Non-Fund Portfolio14,22915,2477.15%
C.        Customer Asset Portfolio (A+B)1,18,0801,32,86612.52%
D.       Net Investments10,01710,9038.84%
E.        Total Borrowings1,09,6171,07,477(1.95%)
F.        Total Business (C+D+E)2,37,7142,51,2465.69%
G.       Business per Employee6837377.86%
H.       Operating Profit      2,823      3,13010.87%
I.         Profit Before Tax        356      2,150503.93%
J.         Profit After Tax254738190.55%
K.        Net Non-Performing Assets533(100%)
L.        Capital to Risk Assets Ratio25.89%30.49%460 bps
M.     Provision Coverage Ratio96.74%100%326 bps
N.     Slippage Ratio1.52%0.24%    (128 bps)

BUSINESS PERFORMANCE

  • Exim Bank sanctioned loans aggregating ` 68,863 crore under various lending programmes during FY 2021-22.
  • Policy Business: During FY 2021-22, Exim Bank on behalf of the Government of India sanctioned six Lines of Credit, aggregating US$ 1.13 billion, to support export of projects, goods, and services from India. The Bank has a portfolio of 310 GOI-LOCs with credit commitments aggregating US$ 31.96 billion, which are at various stages of implementation. With ever expanding reach, the LOCs have gained momentum in stimulating economic growth across 66 countries in Africa, Asia, Latin America, Oceania and the CIS region. Under the Buyers’ Credit – National Export Insurance Account (BC-NEIA) portfolio till date, Exim Bank has sanctioned an amount of US$ 3.01 billion, for 34 export projects. Government of India’s announced further infusion of ` 1,650 crore to the NEIA Trust will further support project exports worth ` 33,000 crore.
  • Commercial Business: During FY 2021-22, Exim Bank has supported 75 project export contracts valued at ` 19,380.34 crore under its commercial portfolio, in 39 countries. As on March 31, 2022, Exim Bank provided an aggregate overseas investment finance of      ` 63,877.51 crore to 652 Joint Ventures / Wholly Owned Subsidiaries, set up by 483 Indian companies in 78 countries. Under the Bank’s newly launched Ubharte Sitaare Programme, credit facilities aggregating ` 306.32 crore were extended to 15 companies in sectors including aerospace, auto, pharmaceuticals, engineering and consumer durables.

RESOURCES & TREASURY

  • During FY 2021-22, Government of India infused ` 750 crore capital into Exim Bank. A further capital infusion of ` 1,500 crore for FY 2022-23 has been announced by the Government of India in budget 2022.
  • Exim Bank raised foreign currency resources aggregating US$ 2.05 billion equivalent, through a variety of instruments and rupee resources aggregating ` 19,046 crore, in FY 2021-22. During the year, the Bank issued a 5-year CNH 500 million bond under the GMTN programme. This was the largest CNH issuance out of India with the lowest coupon in the currency. The Bank also issued its first HKD bond, valued at HKD 435 million.
  • The Bank is rated Baa3 (Stable) by Moody’s, BBB- (Stable) by S&P Global Ratings, BBB- (Negative) by Fitch Ratings and BBB+ (Stable) by Japan Credit Rating Agency. All the above ratings are of investment grade or above, and are the same as the sovereign rating.

NEW INITIATIVES

  • Exim Bank has set up an ESG Framework to facilitate issuance of green, social or sustainable bonds / loans. A Second Party Opinion was sought from Sustainalytics, which confirmed that the Framework is ‘credible and impactful’, and that the Bank is well-positioned to address common environmental and social risks associated with projects.
  • To further enhance its support to the MSME sector, Exim Bank has initiated Trade Assistance Programme. Under this programme, trade lines will be extended to participating overseas banks/institutions in the emerging markets, and credit enhancement to participating commercial banks in India to cover payment obligations on identified banks. Exim Bank is also in the process of setting up a factoring business, with focus on MSME exporters.

Exim Bank is also in the process of setting up a factoring business, with focus on MSME exporters.

EXPORT FACILITATION

  • The Department of Commerce, Ministry of Commerce & Industry, Government of India is engaging with Exim Bank to conduct an impact assessment of Free Trade Agreements for the EU and Canada. The Bank has also partnered with the Government of Andhra Pradesh for preparing an export strategy paper for the state.
  • Exim Bank conducted 19 seminars/workshops for exporters, with themes such as export capability creation, business opportunities, industry, country & region focus, and export potential of Indian states.
  • Exim Bank, under its grassroots initiatives, has been supporting and assisting rural artisans, craftsmen and farmers to widen their domestic as well as international presence by organizing design, skill-building and training workshops. Some of these programmes organised during the year were for weavers of Banarasi Silk in Varanasi and Waril artisans of Maharashtra. The Bank has identified 12 products from 11 districts under the Government of India’s One District One Product initiative and is engaging with stakeholders to provide relevant interventions.

SOCIAL INITIATIVES

  • During FY 2021-22, 12 projects / programmes in seven states and one UT were sanctioned in the areas of education & skill development, environment, healthcare & sanitation, and livelihood activities. Some of the notable projects implemented during the year include upgrading facilities in hospitals in Assam, Jharkhand, Maharashtra and Rajasthan; education infrastructure development in 20 schools in Solapur (Maharashtra); sponsoring underprivileged women weavers in Mizoram for skill development; and construction of all-weather toilets and renovation of training centres in Ladakh for the local weaver community. Exim Bank has identified two villages in Maharashtra for an overall improvement of health and education infrastructure, and livelihood and skill development, under its ‘Dream Village’ initiative.

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