Exim Bank to raise up to $4 billion this year
The Export Import Bank of India, also known as Exim Bank, intends to raise a record $4 billion in the fiscal year 2023–2024 (FY24) for the purpose of providing term loans and trade finance.
The Export Import Bank of India, also known as Exim Bank, intends to raise a record $4 billion in the fiscal year 2023–2024 (FY24) for the purpose of providing term loans and trade finance. The amount will be determined by market conditions, and Exim, which raised $3.47 billion in FY23, would consider several currencies as well as its large investor base. The monies will be used to help the bank’s expansion goals, according to Harsha Bangari, managing director of the export credit agency.
Under its environment social governance (ESG) framework, Exim Bank raised $1 billion through sustainability bonds in January 2023. Later, a second bond offering helped the bank raise an additional $100 million. According to Bangari, the profits from the bonds will be utilised to promote water and waste management, affordable housing, access to basic services and infrastructure, clean transportation, renewable energy, and clean infrastructure.
Exim Bank’s Asset Quality and Capital Adequacy Ratio:
Gross non-performing assets (NPA) of Exim Bank increased from 3.56% at the end of March 2022 to 4.09% at the end of March 2023. However, from zero in March 2022 to 0.71% in March 2023, its net NPA grew. The bank has made provisions for exposure to Ghana in FY23, which are fully guaranteed by a programme managed by the Export Credit Guarantee Corporation of India, according to Exim Bank officials.
In March 2023, Exim Bank’s capital adequacy ratio (CAR) was 25.43% as opposed to 30.49% a year earlier. The bank’s current situation is pretty comfortable, so it won’t try to raise capital during the current fiscal year. The bank won’t even think about raising capital until its CAR is about 20% for future expansion.
Exim Bank’s Financial Performance and Loan Portfolio in FY23:
While total revenue climbed to Rs 11,487 crore from Rs 8,363 crore in FY22, Exim Bank’s net profit more than quadrupled to Rs 1,556 crore in FY23 from Rs 738 crore. The bank’s net loan portfolio also grew, from Rs 1.17 trillion in FY22 to Rs 1.34 trillion in FY23, a 17% YoY rise. In FY24, Bangari predicted a 12–15% increase in loans. At the end of March 2023, the non-fund portfolio, which also includes guarantees, increased by 11.5% to Rs 17,000 crore.