Exim Bank seeks additional Rs.800 crore from govt.

The Dollar Business Bureau

The Export-Import Bank of India (Exim Bank) on Wednesday sought additional Rs.800 crore equity infusion from the government this financial year. So far, this financial institution has received about Rs.500 crore.

Exim Bank Chief Managing Director Yaduvendra Mathur said the growth this fiscal could be muted due to equity constraints and last-year released India Development Economic Assistance Scheme (IDEAS) guidelines.  

During 2015-16, Exim Bank had disbursed about Rs.50,000 crore, thereby registering a  growth of about 18%. The bank had secured about Rs.1,300 crore in fresh equity from the government. 

“Disbursals could be the same as last year. There will be challenges this year. We are requesting the government to inject more equity. We got only Rs.500 crore and we have requested the Finance Ministry to enhance it to Rs.1,300 crore,” Mathur told the reporters on the sidelines of the Banking Conclave organised by FICCI.

He said Exim Bank was planning to raise a similar amount. In 2015-16, the bank raised about $2 billion through dollar bonds, including $500 million through green bonds. “Every year we look to raise $2-3 billion,” he said.  

Exim Bank is currently working on a $10-billion line of credit (LoC) to Africa. The bank financed around 26 overseas projects worth around Rs.5,264 crore last year.

Mathur further pointed out the Indian export financial institution is also exploring funding mechanisms for ships (vessels) for foreign trade. He said the bank was planning to partner with the Shipping Corporation of India in this regard.