PROJECT ON

EXPORT IMPORT BANK OF INDIA

(EXIM BANK)

BACHELOR OF COMMERCE-

BANKING & INSURANCE

SEMESTER V

2008-2009

SUBMITTED BY

SHILPA SONAWANE

ROLL NO: 55
PROJECT ON

EXPORT IMPORT BANK OF INDIA

(EXIM BANK)

BACHELOR OF COMMERCE

BANKING & INSURANCE

SEMESTER V
SUBMITTED

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE AWARD OF THE DEGREE OF BACHELOR
OF COMMERCE BANKING & INSURANCE.

BY

SHILPA SONAWANE

ROLL NO: 55
CERTIFICATE
DECLARATION

Miss.Sneha Sundrani, student of B.Com Banking & Insurance Semester

V (2008-2009), hereby declare that I have completed the Project on
Customer Relationship Management in Banks (Private and Public
Sector) in the academic year 2008.

The information submitted is true and original to the best of my knowledge.

Sign

ature of Student

SHILPA SONAWANE

Roll No-55
ACKNOWLEDGEMEN

Any accomplishment requires the effort of many people and this work is no
different.

This project would just not have been complete without the valuable
contributions from various people whom I have interacted with in the course
of its completion. I would first and foremost thank the Mumbai University for
designing such a specialized course. I am especially thankful to my project
guide Ms. Sapna Malya and our course co-coordinator Mrs. Heena
Thakkar for her encouragement, guidance and constant motivation which
served as a driving force in the successful completion of this project. I also
thank our reverend principal Dr. Mrs. Indu Shahani for giving me an
opportunity to present a creative work in the form of project.

I would like to thank all the five bank managers who provided me the
primary information. I also take this opportunity to express my sincere
gratitude to the library staff that has provided me right information and
study material at the right time.
Lastly I would like to thank my colleagues, my parents, my sister and all those
people who have lent me a helping hand in finishing this project, whose names
are too numerous to be mentioned here. It is said that Gratitude is the hearts
memory; well, the memory of all help and assistance acquired during the course
of this project will remain in my heart as gratitude forever.
ORIGIN AND HISTORY

The Export-Import Bank Act, 1981:

An act to establish a corporation to be known as the Export-Import Bank of

India for providing financial assistance to exporters and importers, and for
functioning as the principal financial institution for co-ordinating the working
of financial institutions engaged in financing the export and import of goods
and services with a view to promoting the countrys international trade and
for matters connected therewith and incidental to.

History:
This Act extends to the whole of India. With effect from the date i.e. September
1981, as the Central Government by notification, appointed, a corporation Known
as the Export Import Bank of India was established for the purposes of this Act.

The Export Import Bank of India, commonly known as the EXIM Bank, commenced
operations in March 1982. It was set up so as to take over the operations relating to
export finance which the IDBI (Industrial Development Bank of India) had been
handling since the year 1970. Exim Bank acts as the apex financial institution
relating to financing for foreign trade. It provides financial assistance by way of direct
loans and advances for the purpose of export or import,
rediscounting of usance export bills for banks and finance for international
trade activities.

MISSION

Exim Banks mission is to facilitate globalization of Indian Business.

Exim Banks mission statement: To develop commercially viable

relationships with externally oriented companies by supporting their
internationalization efforts, through a diverse range of products and
services.
Objective

The objective of the bank is-

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 countrys international trade

shall act on business principles with due regard to public interest as Stated

In the Export-Import Bank Act,1981.

OBJECTIVES

To translate national foreign trade policies into concrete action points.

To provide alternate financing solutions to the Indian exporter, aiding

him in his efforts to be internationally competitive.

To develop mutually beneficial relationships with the international

financial community.

To initiate and participate in debates on issues central to Indias

international trade.
To forge close working relationships with other export development
and financing agencies, multilateral funding agencies and national
trade and investment promotion agencies.

To anticipate and absorb new developments in banking, export

financing and information technology.

To be responsive to export problems of Indian exporters and pursue

policy resolutions.
The Organization: Objective, Vision & Functions
The Exim Bank aims to promote India's international trade. The Logo
reflects this.The Logo has a two-way significance. The import arrow is
thinner than the export arrow. It also reflects the aim of value addition
to exports.

The Organization:

Exim Bank is wholly owned by the Government of India. The authorized

capital of the Bank is Rs. 2000 Crores, of which and Rs. 1000 Crores
respectively, has been fully subscribed by the Central Government. The Bank
raises additional resources through borrowing from the Government of
India, from the RBI and from the market through the issue of bonds and
debentures. It borrows foreign currency form other countries as well. Exim
bank is managed by a Board of Directors, which has representatives from
the Government, Reserve Bank of India, Export Credit Guarantee
Corporation (ECGC) of India, a financial institution, public sector banks,
and the business community.

THE PEOPLE

Exim bank is a virtual melting pot of thriving minds from a variety of

disciplines. The bank has a total staff of 214 hailing from backgrounds as
diverse as banking, engineering, business management, information
technology, accountancy, economics and liberal arts. What they all have in
common, however, is an underlying passion for professional excellence. The
creative synergy produced by a brain trust composed of individuals with vastly
different styles of thinking has helped the Bank to constantly innovate, and
come up with the original solutions solutions beyond banking.
CORPORATE PHILOSOPHY

Exim banks corporate philosophy is built on two pillars:

People orientation and customer focus.

The Banks believes that its people are its key resource. Therefore,
the Banks seeks to develop its human resource by motivating them
through challenging assignments, upgrading their skills through
training programmes, and recognizing professional excellence.

We follow an office- oriented; non-hierarchical work culture and open

office plan facilitating a free flow of interaction between and within
groups. As a model corporate citizen, the Bank maintains an equal ratio
of men and women (1:1) .the Banks high level of office automation, and
a lean and multi-skilled staff enables optimum efficiency and profitability.
Customer-responsiveness is germane to the Banks philosophy. The Bank
constantly seeks to innovate and improve its products, processes and delivery
mechanisms, and thereby minimize response time and maximize customer
equity. Our interactive mode of analysis and decision-making, through multi
disciplinary cross-functional groups ensures that the best possible business
solution is offered to the customer.

GLOBAL NETWORKING

Exim bank is quite unique in its global and national network of

institutional and professional linkages .Our five overseas offices-at
Dubai, Johannesburg, London, Singapore and Washington D.C.-
have forged strategic institutional linkages for the bank with:

Multilateral agencies such as World Bank, Asian development

Bank;

Export credit agencies;

Trade and investment promotion agencies abroad; and

Trade and industry association in India.

The banks extensive global network, supported by the Indian missions abroad
makes it uniquely capable of offering advisory services to Indian companies
looking for marketing opportunities, buyer information, technology suppliers and
partners for overseas and domestic joint ventures. Further, our overseas
office enables us to garner economic and commercial intelligence on
countries, companies and projects, assess credit risks, review competitive
export practices and provide alerts on new export opportunities.

The Nine Domestic Offices of the Bank

Helps to respond to regional development activities in the export sector. They

identify special needs of the export business through close interaction with existing
and prospective clients and suggest innovative instruments appropriate to the
regions potential. They also regularly interact with commercial development
/government agencies, and strengthen the banks policy mechanism with their critical
inputs on market perceptions and the export environment.

Detailed appraisals, legal documentation, initial processing of loan

disbursement requests, and monitoring of loans, including site visits,
inspection of assets charged to the bank and overall monitoring of the
performance of the companies are also done at domestic offices.

SOURCES OF FUNDS
As at March 31,2006,the bank had a paid up capital of Rs 9.5 billion,
and its net worth was rs27.20 billion. They also raise funds from
domestic and international markets.

ORGANISATIONAL SET-UP

Exim bank is managed by a Board of Directors, which has high level

representatives from the Government, Reserve Bank of India, Export
Credit Guarantee Corporation of India, public sector Banks, academia
and business community. With its headquarters in Mumbai, the bank has
nine regional offices overseas.

The banks functions are segmented into several operating groups including
Corporate banking group which handles a variety of financing
programmes for, Export Oriented Units (EOUs), importers, and
investment by Indian companies.

Project finance/trade finance group which handles the entire range of

export credit services such as suppliers credit, pre-shipment credit,
buyers credit, finance for export of projects and consultancy services,
guarantees, forfeiting.
Lines of credit group- lines of credit (LOC) is a financing mechanism that
provides a safe mode of non recourse financing option to Indian exporters,
especially to SMEs, and serves and an effective market entry tool. Exim
banks extends LOCs to sovereign governments, central banks, regional
development banks, overseas financial institutions and other entities
overseas, to enable buyers in those countries, to import equipment, goods
and services from India, on deferred credit terms.

Agri business group, which has been put in place to spearhead the
initiative to promote and support Agri exports. The Group handles
projects and export transactions in the agricultural sector for financing.

Small and medium enterprises group has been established to cater

to the specific financing requirements of export oriented SMEs.The
group handles credit proposals from SMEs under various leading
programmes of the bank.

Export services group offers a variety of advisory and value-added

information services aimed at trade and investment

promotion.

Apart from these, there are Support Services Groups, which include:

Research and Planning, Corporate Finance, Loan recovery,

Internal Audit, Management Information Services, Risk
Management, Information Technology, Legal, Human Resources
Management and Corporate Affairs.
Evolving Vision
Functions:
Financing of exports and imports of goods and services, not only of India
but also of third world countries.

Financing of exports and imports of machinery and equipment on lease

basis.
Financing of joint ventures in foreign countries.

Providing loans to Indian parties to enable them to contribute to the

share capital of joint ventures in foreign countries.

Undertake limited merchant banking functions such as underwriting of

stocks, shares, bonds or debentures of companies engaged in export
or import; and

Provide technical administrative and financial assistance to parties in

connection with export and import.

THE ROLE

Exim bank plays a four-pronged role with regard to Indias foreign trade:
those of a coordinator, a source of finance, consultant and promoter.
COORDINATION ROLE

Exim bank is the coordinator of the working group mechanism for clearance of
projects 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), and Reserve Bank of India; export credit Guarantee
Corporation of India limited and commercial banks that are authorized foreign
exchange dealers.
This inter-institutional Working Group accords clearance to contracts
(at the post award stage) sponsored by commercial banks or Exim
Bank, and operates as 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 $100million in value.
EXPORT CREDIT.

Exim bank offers the following export credit facilities, which can be availed
of by Indian companies, commercial banks and international entities.
FOR INDIAN COMPANIES EXECUTING CONTACTS OVERSEAS
 PRESHIPMENT CREDIT.

Exim banks pre-shipment credit facility, in Indian rupees and foreign

currencies, provides access to finance at a manufacturing stage, enabling
exporters to purchase raw materials and other inputs.

SUPPLIERS CREDIT

This facility enables Indian exporters to extend term credit to importers

(overseas) of the eligible goods at the post shipment stage.

FOR PROJECTS EXPORTERS.

Indian project exporters incur Rupee expenditure while executing overseas project
export contracts i.e. costs of mobilization/acquisition of materials, personnel and
equipment etc. Exim Bank's facility helps them meet these expenses.
For Exporters of Consultancy and Technological Services.

Exim Bank offers a special credit facility to Indian exporters of consultancy

and technology services, so that they can, in turn, extend term credit to
overseas importers.

Guarantee facilities.

Indian companies can avail of these to furnish requisite guarantees to

facilitate execution and export contracts and import transactions.
Forfeiting.

Forfeiting is a financing mechanism that enables a company to convert

credit sale to cash sale, on without recourse basis. Exim bank acts as
facilitator for the Indian exporter, enabling him to access the services of an
overseas forfeiting agency.

FINANCE FOR EXPORT ORIENTED UNITS.

TERM FINANCE FOR EXPORTING COMPANIES
Project Finance

Equipment Finance

Import of Technology & Related Services

Domestic Acquisitions of businesses/companies/brands

Export Product Development/ Research & Development

General corporate finance.

WORKING CAPITAL FINANCE FOR EXPORTING COMPANIES.

Funded

Working Capital Term Loans [< 2 years]

Long Term Working Capital [up to 5 years]

Export Bills Discounting

Export Packing Credit

Cash Flow financing.

Non-funded

Letter of credit limits

Guarantee limits

Working Capital Finance For Non- Exporting

Companies.

Bulk Import of Raw Material.

Term Finance For Non- Exporting Companies.

Import of Equipment

Export Finance.

Pre-shipment Credit
Post Shipment Credit

Buyers' Credit

Suppliers' Credit [including deferred payment credit]

Bills Discounting

Export Receivables Financing

Warehousing Finance

Export Lines of Credit (Non-recourse finance)

Equity Participation In Indian Exporting Companies.

To part finance project expenditure (Project, inter alias, includes new project/

expansion/ acquisition of business/company/ brands/research & development).

Overseas Investment Finance
Finance for Indian Company's equity participation in the overseas Joint
Venture (JV)/ Wholly Owned Subsidiary (WOS)

Direct Finance (Term & Working Capital) to the overseas JV / WOS

Finance (for equity/debt component) for acquisition of overseas businesses /

companies including leveraged buy-outs including structured financing options.

Direct Equity by Exim Bank in the overseas JV/ WOS of an Indian Company.
Export Import Bank of India - Small & Medium Enterprises &
Agricultural finance

Definition of SMEs in India and World:

In India the small and medium enterprises are not well defined. The internal group
set up by the Reserve Bank of India has recently recommended that the units with
investment in plant and machinery in excess of SSI limit and upto Rs. 10 crores may
be treated as medium enterprises. The definitions of small and medium sized
enterprises differ from one country to another. SMEs have been defined against
various criteria such as the number of workers employed, volume of output
or sales, value of assets employed, and the use of energy. Organization for
Economic Cooperation and Development (OECD) defines establishments with
upto 19 employees as very small, between 20 and 99 employees as small,
from 100 to 499 employees as medium and over 500 employees as large
enterprises. However, many establishments in some developing countries with
100 to 499 employees are regarded as relatively large firms. Multilateral
Investment Guarantee Agency (MIGA) has recently developed a guarantee
programme, called the Small Investment Programme (SIP) that is specifically
designed for SMEs. MIGA defines SMEs, for coverage under this programme,
as firms with not more than 300 employees, value of assets not exceeding US
$ 15 million and annual sales not exceeding US $ 15 million. The European
Union defines SMEs that have employees of less than 250, with a turnover
not exceeding Euro 50 million. Thus the definition of SME varies from country
to country and from region to region. The importance of SME sector is well-
recognized world over owing to its significant contribution in achieving various
socio-economic objectives, such as employment generation, contribution to
national output and exports, fostering new entrepreneurship and to provide
depth to the industrial base of the economy. India has a vibrant SME sector
that plays an important role in sustaining economic growth, increasing trade,
generating employment and creating new entrepreneurship in India.

Importance of the SME sector:

The SSI sector in India employs around 26 million people and is involved with the
production of over 7500 industrial items with the product range varying from very
simple items produced with traditional technology to high tech products. At
present, the SSI sector accounts for over 90% of industrial units in the
country, 40% of value addition in the manufacturing output and approximately
35% of Indias exports. SSI sector in India has been exhibiting a striking
export performance. Barring few years, exports have grown double digit in the
last 10 years. Major sectors contributing to SSI exports include readymade
garments (27%), engineering goods (14.5%), chemicals & pharmaceuticals,
electronics & computers, and processed foods (11% each).
Exim Bank and SMEs:

Indian SMEs require business advisory services to enhance their

international competitiveness in a highly competitive globalising world. The
SMEs find the services of reputed national and international consultants as
not cost effective and often, not adequately focused. Recognizing this
knowledge gap, Exim Bank of India has been endeavouring to provide a
suite of services to its SME clients. These include providing business
leads, handholding during the process of winning an export contract and
thus assisting the generation of export business on success fee basis,
countries/ sector information dissemination, capacity building in niche
areas such as quality, safety, export marketing, etc. and financial advisory
services such as loan syndication, etc.

In the past, Exim Bank has implemented a number of innovative programmes

focusing primarily on SMEs. The Bank, in the past, has operated an Agency Line
of Credit for IFC and an Export Marketing Programme for the World Bank, which
are targeted towards SME sector. The Bank proactively assists SME units in
establishing their products in international markets. Exim Banks Lines of Credit
help SMEs to offer competitive credit term to the buyers and to explore newer
geographical markets. Recently, the Bank has signed a Memorandum of
Cooperation with the International Trade Centre (ITC), Geneva, to implement the
Enterprise Management Development Services (EMDS) programme, for
supporting SMEs in their globalisation efforts. This initiative is being
launched by ITC for the first time in any country.
AGRI FINANCE
The globalization and post-WTO scenario offers considerable scope for
exports of Indian agricultural products. Exim Bank has a dedicated Agri
Business Group to cater to the financing needs of export-oriented
companies dealing in agricultural products.

Financial assistance is provided by way of term loans, pre-shipment/post-

shipment credit, overseas buyers' credit, bulk import finance, guarantees etc.
Term loans with varying maturities are provided for setting up processing
facilities, expansion, modernization, purchase of equipment, import of
equipment/technology, financing overseas joint ventures and acquisitions etc.

The Bank has strong linkages with other stakeholders in Agri sector such as
Ministry of Food Processing Industries, GoI, NABARD, APEDA, Small
Farmers' Agri-Business Consortium (SFAC), and National Horticultural Board
etc. Apart from financing, the Bank also provides a range of advisory services
to Agri exporters. Term loans with varying maturities are provided for setting
up processing facilities, expansion, modernization, purchase of equipment,
import of equipment/technology, financing overseas joint ventures and
acquisitions etc. The Bank has strong linkages with other stakeholders in Agri
sector such as Ministry of Food Processing Industries, Government of India,
NABARD, APEDA, Small Farmers' Agri-Business Consortium (SFAC), and
National Horticultural Board etc. Apart from financing, the Bank also provides
a range of advisory services to Agri-exporters. The Bank also publishes a
number of Occasional Papers, Working Papers on export potential of various
sub-sectors in agriculture and a bi-monthly publication in different languages
on global scenario in agri-business and opportunities therein.
Initiatives by Exim Bank for both Small and Medium Enterprises &
Agri finance:

Exim Bank has signed a Memorandum of Cooperation with DHAN

Foundation, Madurai (a leading NGO covering 3 lakh families in 4 states)
for advisory and financial support for export related activities for their grass
root enterprises

Set up units to produce value-added products from organic tamarind grown

in the area

Steps are on to set up an export oriented coco-peat projects

To market products made out of palm leaves and handmade papers in

Europe through our overseas offices.

To devise marketing strategy for marketing local handicrafts to foreign

tourists through 5 star hotels.
Exim Bank has signed Memorandum Of Cooperation with BASIX,
Hyderabad. BASIX promotes development for the rural poor and
women, mainly through Micro-credit and Micro Finance. Highlights of
MoC:-

a) joint consultancy studies, b) productivity enhancement,

c) market linkages, capacity building, d) entrepreneurship development,

e) commercialization of India's rural sector in overseas market

technical assistance to micro and small-enterprises in the farm and non-
farm sectors in other developing countries,

Exim Bank along with BASIX to organise skill upgradation workshop for
handloom weavers in Mahabubnagar Mandal & for tussar silk weavers
in Kosgi, Andhra Pradesh

BASIX in association with Govt. of Rajasthan and UNDP is engaged in

discussions for developing export clusters in Rajasthan including Stone
Carving and Dari Cluster in Lawan, Dausa and Pottery Cluster in Basawa.

Exim Bank is engaged in helping the clusters in product development and

establishing export market linkages, organizing workshops and training
programs for skill upgradation of rural artisans.

Exim Banks Dubai ( formerly Budapest ) office helped in exporting

sandstone slabs to Hungary

Exim Bank has signed a Memorandum of Cooperation with Uravu (an NGO
involved in employment generation programs in the bamboo sector for
tribal & poor families in Waynad, Kerala) to provide larger visibility to
bamboo-based handicraft products. Highlights of MoC:-

Facilitate promotion of Uravu's or its associates' products in overseas

market.
Identification of suitable buyers / partners by Exim Bank for facilitating
export business of Uravu and its associates.

Exchange of information on international markets for various products,

technology, trade, business and investing opportunities to facilitate increased
co-operation for commercial exploitation in overseas markets.

Conducting joint studies and research in areas of mutual interest

Exim Bank has initiated discussion with handloom weavers cooperative

societies in Fulia (West Bengal) for marketing their products overseas

National Institute of Fashion Design, Handloom & Handicraft Export

Promotion Council and Directorate of Handloom, Govt. of West Bengal
participated in the discussions at Exims office in Kolkata

One suggestion under discussion is to form a marketing company with

equity participation by the weavers co-op, West Bengal Govt. and Exim
Bank which will take up marketing of the products

Feasibility report under preparation by Indian Institute of Social Welfare &

Business Management, Kolkata

Exim Bank is also associated with rural knowledge centre of M.S.

Swaminathan Research Foundation for providing technology inputs
to rural areas.

Recent Developments :
EXIMs focus on SMEs

Special Line of Credit from ADB: The Bank is negotiating a long term Line
of Credit of US$ 250 mn. From the Asian Development Bank, without
Central Government guarantee, for extending loans to SMEs . The Bank
will have an option to draw the funds in different currencies, as per the
needs of its customers.

Innovative Programme for SMEs

The Bank has entered into a cooperation arrangement with International

Trade Centre (ITC), Geneva, for implementing a unique Enterprise
Management Development Services (EMDS) program, which is an IT
based solution provider to enable small enterprises to prepare business
plans with international market in focus. This is a pioneering initiative for
supporting SMEs and for providing term loans and export finance facilities
to the identified units to help them in their globalisation efforts. The Bank
has partnered ITC in implementing this project. The Bank thus supports
small enterprises through capacity building and assistance in formulation of
viable proposals. It is envisaged that the learning from this programme
would be transferred to other developing countries, and thus assist in
capacity creation and institution building in the global arena.

The Bank has partnered the Commonwealth Secretariat in the Commonwealth

 India Small Business Competitiveness Development Programme. The
objective of the programme is to undertake capacity development initiative
that promotes economic development (increased employment, investment,
trade and economic activity) in Commonwealth member states by providing
competitive strategies and policies on SME development to practitioners
and policy makers, and to build and develop institutional capacity.

ADFIAP Development Award

The Association of Development Financing Institutions in Asia and the

Pacific (ADFIAP) Development Award recognises and honours ADFIAP
member institutions, which have assisted projects that have created a
development impact in their respective countries. Awardsare given to
member institutions, which have implemented or enhanced outstanding
and innovative development projects during the year. The Bank has been
conferred the 2008 SME Development Award.

The Award is in recognition of the Banks Enterprises Management

Development Services (EMDS) programme, an IT based solution provider
to enable small enterprises to prepare business plans with international
market in focus
Debt restructuring scheme for small and medium enterprises

Publications

Export Performance of Small and Medium Enterprises in India in research

brief.
Occasional Paper: Institutional Support to SMEs A Study of Trade and
Investment Potential

Occasional Paper: Institutional Support Systems for SMEs in India and

International Experiences
FILM FINANCE
The bank has till date-sanctioned loans more than Rs 33.15 crores for
film production .the first three films financed by Exim bank has been
commercially successful across India and overseas market.
FILMS FINANCED BY EXIM BANK.

Honeymoon Travels Pvt. Ltd.

Kabul Express

Dhoom -2
Don - The Chase Begins Again

Fanaa

Bunty Aur Babli

Salaam Namaste

Veer Zaara
EXPORT CREDITS

Exim bank offers the following Export Credit facilities, which can be availed
of by Indian companies, commercial banks and overseas entities.

FOR COMMERCIAL BANKS:

Exim bank offers Rediscounting facility to commercial banks,

enabling them to rediscount export bills of their SSI customers, with
usance not exceeding 90 days.
We also offer Refinance of Suppliers Credit, enabling commercial banks
to offer credit to Indian exporters of eligible goods, who in turn extend them
credit over 180 days to importers overseas.

OTHER FACILITIES FOR INDIAN COMPANIES:

Indian companies executing contracts within India, but which are financed by
multilateral finance agencies, can avail of credit under our finance for deemed
exports facility, aimed at helping them meet cash flow deficits.

FOR OVERSEAS ENTITIES

Buyers credit:
Overseas buyers can avail of Buyers Credit from Exim bank, for import of
eligible goods from India on deferred payment terms.

Line Of Credit

Introduction

Exim Bank extends Lines of Credit (LOCs) to overseas financial institutions,

regional development banks, sovereign governments and other entities overseas, to
enable buyers in those countries, to import goods and services from India on
deferred credit terms. The Indian exporters can obtain payment of eligible
value from Exim Bank, without recourse to them, against negotiation of
shipping documents. LOC is a financing mechanism that provides a safe
mode of non-recourse financing option to Indian exporters, especially to
SMEs, and serves as an effective market entry tool. Exim Bank extends
LOCs, on its own, as well as, at the behest of Government of India.

How does it work?

Exim Bank signs LOC Agreement with overseas Borrower Institution

(Borrower) and announces the availability of LOC for utilization, when the
Agreement becomes effective.

Exporter checks with Exim Bank, available amount under the LOC and quantum of
service fee payable to Exim Bank, if any, and negotiates contract with Importer.

Importer approaches the Borrower for approval of the contract.

Borrower appraises the proposal. If satisfied, approves the contract and

refers to Exim Bank for concurrence for inclusion of contract for being
financed under the LOC.
Exim Bank accords approval to the contract, if in conformity with the terms of LOC.
Exim Bank conveys contract approval to the exporter and the Borrower.

The Importer arranges remittance of advance payment to the Exporter and also
opening of a Letter of Credit, which states that the contract is covered under Exim
Bank's LOC to the Borrower and reimbursement will be by Exim Bank for the
Eligible Value of Credit, upon compliance with stipulated conditions therein.

Exporter executes the contract/ships the goods/provides services.

Exim Bank/commercial bank in India, designated as the Negotiating Bank

negotiates shipping documents and pays the exporter.

Exim Bank reimburses the Negotiating Bank, on receipt of valid claim and
service fee, as applicable, by debit to the LOC account of the Borrower.

Borrower repays Exim Bank on due dates.

Procedural flow chart

Benefits to the Indian Exporter:

Under Exim Bank's LOCs, the Indian exporters can obtain payment of eligible
value from Exim Bank, without recourse to them, against negotiation of shipping
documents. The Indian exporter does not carry any credit risk either on the
importer or the importer's country, whilst the overseas importer enjoys deferred
credit facility. Thus, LOC is a safe mode of non-recourse financing option to the
Indian exporter and serves as a
market entry tool for India's exports. The Indian exporter can also increase his
export volumes by offering deferred credit, where required.

Benefits to Overseas Importer of goods and services:

Exim Bank has been using the LOC mechanism for promoting India's exports
to the traditional as well as new markets in developing countries, which need
deferred credit for buying Indian machinery, goods and services. As the LOC
is extended by Exim Bank on internationally competitive terms, the overseas
importer of Indian goods is allowed access to the credit facility at competitive
interest rates. The overseas importer and the Indian exporter do not have to
negotiate credit terms separately as the credit arrangement between Exim
Bank and the overseas borrower financial institution is already in place.

Credit period allowed under the LOC Eligible Goods:

Capital goods, plant and machinery, industrial manufactures, consumer

durables and any other items eligible for being exported under the 'Exim
Policy' of the Government of India.

Interest rate the overseas importer of Indian goods has to pay

The overseas importer of Indian goods has to approach the overseas borrower
financial institution/recipient of Exim Bank's LOC, for approval of his proposal for
import of Indian goods on deferred credit terms. The interest rate that the importer
will need to pay to the recipient of Exim Bank's LOC, will depend on various factors
such as the cost of fund, the currency of credit, tenor of credit, security offered by
the importer, the risk perception of the importer and the interest rate structure
prevalent in the country. It may however be mentioned that Exim Bank's
interest rates on LOCs being competitive, the importer would normally have to pay
interest rate lower than what he would otherwise pay to his Bank on similar credits.

Charges payable by the Indian exporter to Exim Bank

In respect of certain LOCs, the Indian exporter has to pay a service fee to
Exim Bank. The exporter should check in advance with Exim Bank the
quantum/percentage of service fee payable. In respect of LOCs extended
by Exim Bank, at the behest of Government of India, no service fee is
normally payable by the exporter to Exim Bank.

Minimum value of contract for being eligible for coverage under the LOC

Most of the LOCs stipulate a minimum contract value as US$ 50000.

However, under certain LOCs, the minimum value of contract could be
different. Exporters would be well advised to check the particulars of the
individual LOC with Exim Bank.

Generally, export of capital goods and plant and machinery is allowed on credit
terms of upto 5 years, whereas the export of industrial manufactures, consumer
durables, raw materials and commodities is allowed on credit terms of upto 2 years.
However, the credit period allowed under each LOC could be different. There are
certain short-term LOCs which provide for credit period of 1 year, and there are
certain LOCs which permit credit period beyond 5 years. Exporters are advised to
check the details with Exim Bank, in advance. In respect of LOCs
extended by Exim Bank, at the behest of Government of India, credit period
ranges from 8 years to 20 years depending on the caegories of countries,
based on their levels of incomes and external debt.

The stage at which the Indian exporter should contact Exim Bank

The Indian exporter should contact Exim Bank before finalizing the price
negotiation with his prospective importer, if the transaction is intended to be
covered under Exim Bank's LOC. The exporter should ascertain details
such as the service fee payable to Exim Bank, the credit period permissible
under the LOC, the payment procedure involved and the contact
person/department in the overseas borrower institution/recipient of LOC. In
respect of certain LOCs especially those extended by Exim Bank, at the
behest of Government of India, sectors/projects could be pre-identified.

ECGC cover

As the LOC is a non-recourse financing option to the Indian exporter, he

does not have to obtain any ECGC cover.
Recent Developments And News Highlights :

Exim bank signs agreement with African counterpart

New Delhi, March 20,2008: Exim Bank of India has signed an agreement with
the African Export-Import Bank or Afreximbank for a Line of Credit to the tune
of $30 million to be provided for financing Indias exports to Africa.
The agreement was signed at the 4th CII-Exim Bank conclave on India-Africa
Project Partnership 2008 in New Delhi on. The agreement was signed by Mr.
T C Venkat Subramanian, Chairman and Managing Director of Exim Bank
and Jean-Louis Ekra, President of Afreximbank. This agreement will facilitate
and boost Indias exports to member states of Afreximbank. The Line of
Credit affords a risk free, non-recourse export financing option to Indian
exporters. Exim Bank is a non-regional shareholder of Afreximbank which
represents 38 member-states across Africa.

Exim Bank Of India And Lao Pdr Ink Credit Agreement

Export-Import Bank of India (Exim Bank) and the Government of Lao People's
Democratic Republic have signed a Line of Credit (LOC) Agreement for US$ 33
mn during the State Visit of the President of Lao PDR to India. The LOC
Agreement was signed in New Delhi, on Wednesday, August 27, 2008, by Mr.
S.R. Rao, Executive Director, on behalf of Exim Bank of India, and H.E. Mr.
Somdy Douangdy, Minister of Finance, on behalf of Lao PDR, in the presence of
Hon'ble Prime Minister of India, Dr. Manmohan Singh, and the President of Lao
PDR, H.E. Mr. Choummaly Sayasone.

This Facility, extended at the behest of Government of India, is the first ever Line
of Credit by Exim Bank to Lao PDR. The LOC will be utilised to finance the
Paksong S/S-Jiangxai 115 kV double circuit Transmission Line project, Nam
Song 7.5 MW Hydropower project and equipment for Rural Electrification Phase
2 project in Lao PDR. Under the LOC, Exim Bank will reimburse 100% of
contract value the Indian exporter, upfront upon the shipment of goods. Besides
promoting India's exports, Exim Bank's LOCs enable demonstration of Indian
expertise and project execution capabilities in emerging markets.

With the signing of this LOC Agreement, Exim Bank has now in place 101
Lines of Credit, covering over 90 countries in Africa, Asia, Latin America,
Europe and the CIS, with credit commitments amounting to US$ 3.32 bn,
available for utilization for financing exports from India. Exim Bank's LOCs
afford a risk-free, non-recourse export financing option to Indian exporters.
FINANCE FOR EXPORT ORIENTED UNITS (EOUs)

For the purpose of our financing, an export oriented company is

defined as any company with a minimum export orientation of 10% of
net sales, or annual export sales of Rs 5 crores, whichever is lower.

PROJECT FINANCE

For setting up of EOUs:

Exim bank offers term loans for setting up of new projects, and acquisition of
assets for modernization/upgradation/exansion of existing units. The bank also
extends 100% refinance to commercial banks, for term loan sanctioned
by the lending bank to an EOU.

For textile and jute industries:

The bank also extends finance to eligible units in textile and jute
industries under The Technology Up gradation Fund Scheme, to
enable them to upgrade their manufacturing facilities.

For software industry:

The bank offers a comprehensive financing /services package for the

software industry. These include project/equipment finance, working
capital finance, and overseas investment finance, besides support for
obtaining product/process certification, export marketing and export
product development.
To address the perceived constraint in the availability of trained software
professionals, Exim Bank extends term loans to software exporters for
establishment/expansion of software training institutes. Further, the
bank also facilitates setting up of software technology parks (STPs).

For Indian companies involved in port development and related

activities:
Exim Bank extends term loans to Indian companies involved in construction
of ports/jetties, and for acquisition of fixed assets for stevedoring, cargo
handling, storage and related activities like dry docks and ship breaking.

WORKING CAPITAL FINANCE.

Exim Bank provides term loans (of 1year, 1-2years,and up to 5 years tenor)
to eligible EOUs, to help them meet their working capital requirements.

OTHER FACILITIES

Finance for R & D and Export Product Development:

Exim bank offers term loans to EOUs, for development of new technology to
satisfy domestic and international environment and standards, and to help
them develop and/or commercialize new product/process applications.

Finance for service sector:

Services sectors financed by Exim Bank include entertainment, health care,

hospitality and shipping. Exim Bank has entered into the business of film
financing on a very selective basis to cover, inter alia, film production and
finance for distribution in overseas markets. The banks approach towards film
financing is to focus on films produced specifically for international
audiences and/or film projects, which have foreign exchange earning
potential. The banks film finance is targeted to select production and
distribution houses with proven track record.

Natural resources:

Exim bank selectively provides term loans to Indian companies in their

endeavor to acquire overseas natural resources in terms of acquiring
mining/exploration rights in overseas locations. Exim; finance will be
available to Indian companies for acquisitions of such rights either on
its own or in joint venture with an overseas partner, subject to a
reasonable proportion of the resources being destined for India.

Underwriting:

Exim bank extends underwriting commitment to Indian exporters, to

help them raise finance from capital markets through public/rights
issues of equity shares /debentures.

Export Marketing Finance:

Exim bank offers term loans to Indian companies, to aid them in their
efforts to penetrate and retain their presence in overseas markets,
particularly in developed countries.
Import loans:

Exim bank finances bulk imports of consumable inputs and canalized

items undertaken by manufacturing companies.

Guarantee facility:

Exim bank issues different kinds of guarantees for EOUs.These

include: a) export obligation guarantees; b) deferred payment
guarantees; c) guarantees in favor of commercial banks/lending
institutions abroad on behalf of Indian exporters.
FINANCE FOR VENTURE

OVERSEAS.
The bank has a comprehensive programme in terms of equity finance, loans,
guarantees and advisory services to support Indian outward investment.

Exim bank offers term loans to Indian companies, both for equity
investment in their ventures overseas as well as for on lending purposes.
Besides, Exim Bank also undertakes Direct Equity Stake in Indian
Ventures Abroad, to enable Indian companies to supplement their
equity with Exim Banks equity contribution.


documents, etc.

Profile etc.

EXPORT SERVICES

Exim bank offers a diverse range of information, advisory, and support

services, which enable exporters to evaluate international risks,
exploit export opportunities and improve competitiveness.

For Multilateral Agencies Funded Projects Overseas (MFPO):

Exim bank offers value added information and support services to Indian
companies seeking business in business funded by multilateral agencies such
as World Bank, Asian Development Bank, African Development Bank,
European Bank for Reconstruction and Development, and other official
Development Agencies like the Japan Bank for International Cooperation.

Services offered include:

Identification of business opportunities in funded projects.

Details on specific project of interest.

Information on procurement guidelines, policies and

practices of multilateral agencies.

Advice on preparation of Expression of Interest, Capability,

Advice on bids, with regard to bid evaluation, review of bid

Apart from these we also offer support services, such as liaising with Indian
missions, monitoring bid performance, assistance in prequalification etc.

Commercial services:

Exim bank undertakes customized research on behalf of interested

companies, in areas such as establishing market potentials, defining
marketing arrangements, and specifying distribution channels. We also
assist companies in developing export market entry plans, obtaining
quality certifications and display of their products in our overseas offices.

Country profiles:

Exim bank also undertakes country profiles, which assess the

economic, political, currency and credit risks involved, along with the
export opportunities in the country concerned.
Financial counseling:

Exim bank offer advice on how to access foreign currency finance from
multilateral institutions and import lines of credit, trade finance alternatives,
collection/payment systems, as well on the credit worthiness of
business entities and banks.

Internationalization support:

Exim bank helps in identifying technology suppliers, partners, and in

consummation of domestic and overseas joint ventures, through its network
of alliances and its overseas offices. It also advice companies on regulatory
clearances, and facilitate tying-up finance for equity and working capital.

Information access:

Exim bank issues business opportunities alerts, which communicate

business leads, acquisition opportunities, industry trends as well as
collaboration opportunities.

Building export capability:

Our Eximius Learning Centers in Banglore, Ahmedabad and Pune organize

training programmes, workshop and seminars for exporters. These
programmes, often on sector-specific issues, are conducted buy international
experts from trade promotion organizations and multinational companies.
The bank also carries out research on issues related to international
trade, economics and sector/product/country studies, which it
publishes in the form of Occasional Papers and Working Papers.
The bank disseminates information on export opportunities and
highlights development that has a bearing on Indian exports, through its
quarterly bulletin, Eximius: Export Advantage.

Besides, this publication also carries a regular feature, country scan, which
gives update on the trade/investment climate in various countries.

The bank also brings out a bi-monthly publication titled Agri Export
Advantage in English, Hindi and 10 regional languages.

The bank supports three quarterly publications viz Indo African business,
Indo-LAC business and Indo-CIS Business. Exim Banks commitment to
promoting and supporting trade with the African, LAC CIS regions.

International merchant banking services:

Exim bank provides advisory services to Indian exporters to enable

them to offer competitive financial packages when they bid for exports.
EXIM BANK AS AN INTERNATIONAL CONSULTANT.
Exim bank shares its expertise in the creation and operation of a
financial institution in a developing country, with countries
endeavoring to set up institutional infrastructure for international
trade. Our activities in this regard includes:
Feasibility study for establishment of an export credit and guarantee
facility for Gulf Co-operation Council (GCC) countries.

Setting up the Afriexim Bank, Exim Bank in Malaysia, and the export
credit guarantee company in Zimbabwe.

Designing and operational sing of export financing programmes in

turkey and South Africa.

Inputs regarding export marketing/export development for Armenia,

Vietnam and Ukraine.

Feasibility study, undertaken on the behalf of the government of Mauritius,

for projecting Mauritius as an investment hub for Indian firms.
JOINT VENTURES
Global procurement consultants limited (GPCL) is a successful consultancy
company, promoted by Exim bank in 1996,in partnership with leading private and
public sector consultancy firms in India. GPCL provides procurement related
services particularly related to multilateral agencies such as World Bank,
Asian development bank and African development bank.

Global trade finance limited (GTF), a joint venture which had its
shareholders, Exim bank; FIM bank, Malta; and international finance
corporation, Washington and bank of Maharashtra commenced its business
in September 2001.GTF offers factoring for export and domestic receivables
with credit protection. The focus of GTFS activities is on market driven
export-financing solutions for small and medium sized Indian firms.
PROMOTIONAL PROGRAMMES

Promotional activities:
Exim Bank conducts Research Studies on products, sectors, countries, macro
economic issues relevant to international trade and investment. These include your,
a) Sector studies assessing export potential: the sectors covered are Computer
Software, Floriculture, Medicinal Plants, Steel, Jute, Sports Goods, Machine Tools,
Organic Products, Chemical and Pharma.

b) Bilateral trade and investment studies: Kazakhstan, Kyrgyz Republic,

Uzbekistan- Trade Potential. Israel, Sri Lanka, Australia & New Zealand
-Trade & Investment Potential

c) International trade related studies: Transaction Costs of Indian Exports- An

Analysis, Business Practices of Successful Indian Exporters

The Bank disseminates on export opportunities and highlights developments

that have a bearing on Indian exports, through its quarterly bulletin, Eximius:
export advantage. Its Eximius: Export advantage publication also carries a
regular feature, Country Scan, which gives updates on the trade/investment
climate in various countries. The Bank supports three quarterly publications
viz. The Bank also brings out a bi-monthly publication titled Agri-Export
Advantage in English, Hindi and 10 regional languages. The bank supports
three quarterly publications viz. Indo-Africa Business, Indo Latin America
Business, and Indo- CIS business. Support with these magazines
demonstrates Exim Banks commitment to promoting and supporting the
trade with Africa, Latin America and CIS regions.
Award for Business Excellence:-
Exim Bank, in association with the Confederation of Indian Industry (CII),
presents as Annual Award for Business excellence for the best TQM practices
adopted by an Indian company. The high performance standards set down in
order to qualify for the Award serve to foster strong commitments to the TQM
in the companys journey towards Business Excellence.

EXIM BANK INTERNATIONAL ECONOMIC DEVELOPMENT

RESEARCH ANNUAL (IEDRA) AWARD, 2008 :-

In commemoration of Jawaharlal Nehru Birth Centenary (1889-1989)

THE AWARD

Export-Import Bank of India has instituted an Annual Award for research in

International Economics, Trade & Development and Related Financing.
The objective is to promote research in International Economics, Trade &
Development and Related Financing by Indian nationals at universities and
academic institutions in India and abroad. The Award will consist of a sum
of Indian Rupees One Hundred Thousand and a Citation. The Award was
initiated in commemoration of Jawaharlal Nehru Birth Centenary (1889-
1989).
THE ENTRY

Research work by Indian nationals in International Economics, Trade &

Development and Related Financing (either awarded a Doctorate or accepted
for award of Doctorate) from a university or equivalent academic institution
in India or abroad is a prerequisite for eligibility of Award. The Award will be
made to a person eligible to receive an award in Indian Rupees. Exim Bank
will accept, as entry, thesis by which doctorate has been obtained/
accepted for award of Doctorate between January 1, 2004 and September
30, 2008. Thesis can be submitted either in English or Hindi, and in the
latter case must be accompanied by a version in English.

Support to Indian Consultants for undertaking services abroad:-

Under an agreement with the International Finance Corporation (IFC),

Washington, Exim Bank is a participant in the trust funds set up by the IFC
in different parts of the world. As a result of this arrangement, Indian
consultants can avail of its support for undertaking specific assignment in
select countries. including Africa, Eastern Europe, CIS countries, China,
South Asia, and the Mekong Delta region.
RUPEE RESOURCES OF EXIM BANK

Term Deposits:
Issued for tenors 1 to 5 years. Minimum size of each deposit is Rs.
10,000/-. Applicable rates
On the deposits for different tenors is published from time to time. An
incentive in the form of a higher rate

is available to senior citizens. The deposits are non-transferable.

Term Money:

Bank can borrow term money for 3-6 months from scheduled commercial
banks and cooperative

Banks at mutually agreed rates.

Certificates of Deposit (CD)

Issued for tenors 1-3 years at mutually agreed rates in multiples of Rs 1 lakh with

minimum amount of a CD from a single subscriber at Rs. 1 lakh. Eligible

investors include individuals (other
than minors), corporations, companies, trusts, funds, associations etc. and
non-resident Indians (NRIs)

Commercial Papers (CPs)

Issued at a discount to the face-value at mutually agreed rates, for maturities of

15 days - one year in denomination of Rs. 5 lakh (face-value) or multiples

thereof. Eligible investors

Include individuals, banking companies, other corporate bodies registered

or incorporated in India
And unincorporated bodies, Non- Resident Indians (NRIs) and Foreign
Institutional Investors (FIIs) (investment

By FIIs would be within the limit set for their investments by the Securities
and Exchange Board of India (SEBI)).

Bonds

Issued for a minimum maturity of 3 years. In respect of bonds having call /

put or both options, the

same would not be exercisable before the expiry of one year from the date
of issue of bonds. The coupon on

the bond may be fixed or floating (linked to a mutually acceptable 'reference rate').

All the above instruments currently enjoy the highest safety rating from
CRISIL, ICRA and Fitch.

Distributors with proven track record can empanel with the Bank for
arrangement of term deposits.
Summary

The Exim Bank Letter of Credit policy can reduce a banks risks on
confirmations and negotiations of irrevocable letters of credit issued by
overseas financial institutions for the financing of U.S. exports.

This policy affords commercial and political coverage against the failure of an
overseas financial institution (issuing bank), whether sovereign or private, to make
payment or reimbursement to the insured bank on an irrevocable letter of credit.
Coverage is also provided for the insured bank's refinancing of payments
under a sight irrevocable letter of credit of the issuing bank.

What is covered?

The policy applies to irrevocable letters of credit which conform with the Uniform
Customs and Practice for Documentary Credits (UCP), 1993 revision, publication
number 500 of the International Chamber of Commerce where the insured has a
relationship with the foreign issuing bank. The policy is not applicable to
revocable, back-to-back, red clause or conditional letters of credit.

Coverage applies to irrevocable letter of credit sales for goods produced in and
shipped from the United States during the policy period, and for services

Performed by U.S. personnel either in the U.S. or in a host country.

Receivables for products, which are less than 50% U.S. content, excluding
mark-up, and certain defense products, are not eligible for cover.

Terms up to 180 days from the date of first presentation of documents may
be extended for consumer goods, spare parts and raw materials. On a
case-by-case basis, agricultural commodities, fertilizer and capital
equipment may be insured on terms up to 360 days.
Principal amounts are covered up to the maximum insured percentages stated
below or as specified in the policy declarations. Documented interest is covered up
to 180 days after the date of the issuing bank's default (or fewer days when the
claim is settled earlier). On letters of credit that are payable in U.S. dollars, the
insured interest rate is generally prime rate minus 0.5% or the rate stated in the
credit agreement, whichever is less. Exim Bank uses the prime rate published in
the Wall Street Journal, under the table "Money Rates."

The policy specifically excludes coverage for those transactions in which there is
an unresolved documentary dispute between the insured and the issuing bank.
Additionally, coverage is specifically excluded in situations in which the issuing
bank refuses documents at the time of presentation and seeks a refund from the
insured bank to which a reimbursement has already been made.

ELIGIBLE INSURED BANKS

The policy may be issued to any bank doing business in the United States
in accordance with applicable federal or state banking laws and
regulations. An application, form EIB92-34, is required. The insured bank
must act under the terms of the UCP as the paying, accepting, or
negotiating bank for the insured transaction.

PERCENTAGES OF COVER
The Bank Letter of Credit policy provides coverage against losses caused by
events such as war, revolution, expropriation or confiscation by a governmental
authority, cancellation of import or export licenses, and foreign exchange
inconvertibility, and commercial losses caused by events such as insolvency of
the foreign issuing bank, and failure to reimburse or to pay for other reasons.

Equalized coverage for commercial and political risks (comprehensive cover), or

political only coverage is available at the following maximum percentages

HOW THE POLICY WORKS

The policy affords coverage for eligible issuing banks in 2 ways:

1) As determined by Ex-Im Bank based on the insured's submission of an

issuing bank credit limit (IBCL) application, form EIB92-36, for the
overseas financial institution and issuance by Ex-I Bank of a written credit
approval in form of a policy endorsement. The application requires
disclosure of all relevant financial information on the issuing bank.

High credits may be extended up to the amount specified in the IBCL,

which generally remains valid for a maximum period of 12 months. Once
issued, the IBCL becomes a revolving credit approval limited only to the
approved issuing bank with specified terms and tenor.
Exim Bank has published its Short-Term Credit Standards (EIB99-09) -
Buyers, for Letter of Credit Transactions that may be consulted to determine
the likelihood of approval of the confirming bank and the issuing bank.
2) By use of a Discretionary Credit Limit (DCL) given to the insured bank. The
DCL requires the insured bank to have specified documentation of the issuing
banks creditworthiness, such as a short-term debt rating or minimum net
worth and profitability. Alternately, the insured bank may evidence satisfactory
experience with the issuing bank.

Under the DCL, political risks coverage is provided against those of the
country of the issuing banks head office. If the insured bank wants
coverage against the political risks of the country of the issuing bank, when
different from the country of the issuing banks head office, it must
specifically apply for that cover (see IBCL above).

The insured bank is required to obtain an Exporter Certificate, form EIB94-

07, certifying, among other things, that a letter of credit has been
established in support of the described transaction and that the goods are
manufactured or produced in and shipped from the United States. If the
beneficiary of the letter of credit is an entity other than the exporter, a
Beneficiary Certificate, forms EIB92-37, is required.

PRE-PRESENTATION AGREEMENT

Prior to the presentation of documents on the insured bank under a letter of credit
and at the time an insured bank commits to finance or pay, the insured may obtain a
pre-presentation agreement under which Ex-Im Bank agrees not to withdraw
coverage, add, delete, or amend any policy condition, credit limit or other limitation,
including the country limitation schedule for a period of up to 90 days.
The policy also sets forth a method by which this optional agreement may be
used and extended for additional time under the Discretionary Credit Limit.

WHAT THE INSURED AGREES TO DO

The insured agrees:

To submit reports to Ex-Im Bank, form EIB92-30, listing appropriate bank

commitments and insured transactions, with payment of the corresponding
premiums (which will vary from month to month with the level of activity);

To report all amounts past due (insured and uninsured), form EIB92-27,
from the foreign issuing bank;

Not to enter into an insured transaction with an issuing bank that is 30 days
or more past due;

To obtain Ex-Im banks prior written approval for rescheduling or

accelerating any insured transaction;
To make written demands for payment on the foreign issuing bank within 30 days
after default; To exercise reasonable care to minimize or prevent loss;

To maintain evidence of the documents or experience used to exercise a

Discretionary Credit Limit
CLAIMS AND PAYMENTS

Claims may be filed no earlier than 60 days and no later than 120 days after the
date of default. Prior to claim submission, the insured is required, within 30 days of
default, to make written demand for payment on the issuing bank. The insured is
required to file a release and assignment form with Ex-Im
Bank, transferring any rights to the defaulted receivables and any security
when the claim is paid, so that recovery may be attempted.

Ex-Im Bank will pay claims within 60 days of receiving a satisfactorily completed
and documented proof of loss, form EIB92-39.

THE LAST WORDS

The journey, long with many hurdles along the way, but at every step was a
higher learning & a better understanding of why the Export Import Bank of
India is well established in the minds of many, today. While working on this
project I came to realize that the essence of Exim Bank lies with its ability to
recognize the changing global scenario and move ahead with the world, by
extending financial assistance to different countries in the form of loans,
advances, consultancy, rediscounting facilities, working capital finance,
project finance and not to mention its Lines of Credits facility. Because of its
range of differentiated and tailor-made products and services, the Bank has
been able to achieve international recognition & today it can be truly called a
catalyst for Indias international trade. With the advent of globalization, the
barriers to trade are getting dismantled & the dividing lines between national
& global markets are slowly disappearing. Towards facilitating
inclusive globalization is the banks new initiative, which has been seen
through its involvement in creating export capability in small & medium
enterprises, grassroots business enterprises & agro industries. Exim Bank
recognizes that the these sectors have great potential & with the right
assistance, support, investment & expertise, the purchasing power at the
bottom of the pyramid can increase thus leading to a gradual effect in all
other sectors and thus the overall development of the economy which was
ultimately the aim of the Bank at the time of its incorporation and still is.

Throughout the entire project we have referred to all the various functions
and duties that Exim bank has undertaken in all these years. This project
has mainly put light on Exim bank of India.Exim bank of India has grown
exceptionally well in all those years and catered to the needs of all those
thousands and millions of people in their export and import regulations. It is
the backbone of Indians foreign trade and today that Indias foreign trade is
touching heights, Exim bank has played the major role in fulfilling that
expectation.

It is now Indias one of the largest financial institution and is acclaimed worldwide for
all the functions it carries out. It has been graded A+ + + by CRISIL.it has taken
various functions apart from export and import duties. Lastly we can say that it is not
just a bank, but an enormous financial institution, which is leaving no stone unturned
in making its mark globally.

EXECUTIVE SUMMARY
Exim bank is a sole government organization authorized to carry on all the
functions, duties and regulations relating to the export and import of all the
various goods and services. Today Exim bank is not only an import and export
bank, but it has grown over the years and as the time passed it now stands as a
large financial institution which has adopted all the basic requirements and has
gained enormous fame and has made a mark in the entire globe. Established in
1982,with the objective of promoting Indias international trade and to function as
the principal financial institution for co-coordinating the working of institutions
engaged in financing imports and exports of goods and service.

Exim banks mission is to facilitate globalization of Indian business. Today

India has emerged as a developing country and has faced many
challenges and hurdles and has successfully overcome the tag of
underdeveloped to developing and is soon going to be felicitated with the
tag of developing country. With large infrastructure of various projects lined
up and the industrial sector which has attained a boom in the recent past
has led India to climb another milestone and Exim bank is one of the tools
to develop Indias foreign trade. This has played a major role in supporting
India for becoming one of the successful countries in the world.

Today Exim bank has emerged as a huge financial institution in the world,
which has not only undertaken import and export duties but is also catering
to the various needs of other sectors of the industry.
Books:

Banking Theory and Practice by Sundaram and Varshney.

Practice and law of Banking by B.S. Khubchandani.

Export Import Financing by Gerhard.W.Scheider

Publications:

Export-Import Act of India 1981

News letters- Eximius, June 2008, March 2008.

Annual Report 2007-2008 Exim Bank.

Brochure- Exim Bank Of India

Economic Times

Hindu Business Line

DNA
WEB SITES:

www.rbi.org.in

www.eximbankindia.com
www.commerce.nic.in
www.eximbankagro.com

www.eximcomm.com