:: INTRODUCTION

Exim Bank plays four-pronged role with

regard to India's foreign trade: those of a
coordintator, a source of finance, consultant
and promoter.

Exim Bank is the Coordinator of the

Working Group Mechanism for clearance of
Project 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), Reserve Bank of India, Export
Credit Guarantee Corporation of India Ltd.
and commercial banks who are authorised
foreign exchange dealers. This inter-
institutional Working Group accords
clearance to contracts (at the post-award
stage) sponsored by commercial bank or
Exim Bank,and operates as a 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$ 100 million in value.

HISTORY

Exim Bank (full name: The Export-Import Bank of India)

Export-Import Bank of India is the premier export finance institution of the country, set up in
1982 under the Export-Import Bank of India Act 1981. Government of India launched the
institution with a mandate, not just to enhance exports from India, but to integrate the country’s
foreign trade and investment with the overall economic growth. 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. Commencing operations as a purveyor of export credit, like other Export Credit
Agencies in the world, Exim Bank of India has, over the period, evolved into an institution that
plays a major role in partnering Indian industries, particularly the Small and Medium
Enterprises, in their globalisation efforts, through a wide range of products and services offered
at all stages of the business cycle, starting from import of technology and export product
development to export production, export marketing, pre-shipment and post-shipment and
overseas investment.
Organization

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 Bank's 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 overseas investment by Indian companies.

Project Finance / Trade Finance Group handles the entire range of export credit services such as
supplier's credit, pre-shipment Agri Business Group, 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 Enterprise: The group handles credit proposals from SMEs under various
lending programmes of the Bank.

Export Services Group offers variety of advisory and value-added information services aimed at
investment promotion

Export Marketing Services Bank offers assistance to Indian companies, to enable them establish
their products in overseas markets.

Besides these, the Support Services groups, which include: Research & Planning, Corporate
Finance, Loan Recovery, Internal Audit, Management Information Services, Information
Technology, Legal, Human Resources Management and Corporate Affairs

Profile Of EXIM Bank:

The Export-Import Bank of India (Exim Bank) completed 24 years
of operations in March 2006. It was established by an Act of
Parliament known as the Export-Import Bank of India Act 1981
and commenced operations in March 1982. Exim Bank is wholly
owned by the Government of India. Exim Bank was set up for the
purpose of financing, facilitating and promoting foreign trade in
India and also to provide 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 country’s international trade.
It has a high-powered Board of Directors comprising: A Deputy
Governor of Reserve Bank of India, Chairmen of IDBI, ECGC,
Representatives of the Ministries of Finance, Commerce,
Industry, External Affairs and Planning, Chairmen of scheduled
banks and professionals from trade and industry.
Over the years, Exim Bank has developed 35 lending
programmes covering all stages of the export cycle namely Import
of Technology, Export Product Development, Export Production,
Export Marketing , Pre-shipment, Post- shipment, Investment
Abroad

Examples of Information Services

•

Hungarian Pharmaceutical Sector

•

Importers of Sanitary ware, Castings in North America

•

Importers of Agro-chemicals in Eastern Europe

•
Study for ear buds market in Hungary
•

Study of the Indian Wine market for a Hungarian Company

•

Partner identification for an Italian Sanitary ware manufacturer

•

Study of the Indian Crane Industry for a Finnish company

•

Regulatory Framework for setting up a Pharma Project in China

•

Market report for Computer Monitors in India for a Singaporean

firm
•

Study on Bicycle market in Eastern Europe for Indian Cycle

exporter
•

Market Potential for Denim in South East Asia.

SEVICES
Information and support services to Indian companies to help
improve their
prospects for securing business in multilateral agencies funded
projects.
•

Dissemination of business opportunities in funded projects

•

Providing detailed information on projects of interest

•

Information on Procurement Guidelines, Policies, Practices of

•

Multilateral Agencies
•

Assistance for Registration with Multilateral Agencies

•

Advising Indian companies on preparation of Expression of

Interest,
Capability Profile
•

Bid Intervention

Tie-up with
•
International Finance Corporation, Washington D.C.
o

Africa Project Development Facility

o

Africa Enterprise Fund

o

Technical Assistance & Trust Funds

o

Mekong Project Development Facility

•

Eastern & Southern African Trade & Development Bank (PTA

Bank)
•

African Management Services Company (AMSCO), Netherlands

Examples
Gems & Jewellery - Zambia
Financial
Training - Kenya

Offices

Head office -Mumbai

A network of 14 offices in India and Overseas
Domestic Offices:
Ahmedabad, Bangalore, Chennai, Guwahati, Hyderabad, Kolkata,
Mumbai,
New Delhi, Pune.

Head Office
Centre One Building, Floor 21,
World Trade Centre Complex,
Cuffe Parade, Mumbai 400 005.
Phone: 22185272,
Fax: 22182572
E-mail:exi mcord@vsnl.co m
Overseas

Budapest, Johannesburg, London, Singapore, Washington DC.

•
Various Stages of Exports Covered by EXIM Bank-

 Development of export makers

 Expansion of export production capacity
 Production for exports
 Financing post-shipment activities
 Export of manufactured goods
 Export of projects
 Export of technology and softwares

Forms of Financial Assistance Provided by EXIM Bank to Indian Companies-

  Delayed Payment Exports- Term loans are provided to those exporters who deal with exporting
of goods and services and this enables them to offer delayed credit to the foreign buyers. This
system of deferred credit covers Indian consultancies, technology, and other services. Commercial
banks take part in this program either directly or under risk syndication arrangements.
 Pre-shipment credit- Indian companies which are highly involved in the execution of export
activities beyond the cycle time of six months are funded by EXIM Bank. The construction or
turnkey project exporters enjoy the provision of rupee mobilization.
 Term loans for export production- EXIM Bank offers term loans to the 100 percent export
oriented units, units involved in free trade zones, and exporters of various softwares in India. EXIM
bank also works in association with International Finance Corporation, Washington, to provide
financial assistance to the small scale and medium industrial units in terms of ameliorating the
export production capacity of these units in India. EXIM Bank also provides funded and non- funded
facilities to deemed exports from India.
 Foreign Investment Finance- EXIM bank provides financial assistance for equity contribution to
the Indian companies who form Joint Venture with the foreign companies.
 Financing export marketing- It helps the exporters carry out their export market development
plan in Indian market.

Financial Assistance Provided by EXIM Bank to Overseas Companies-

 Foreign Buyer's Credit- the foreign players are entitled to a sum of financial assistance in order to
import goods and services on deferred payments
 Lines of Credit- EXIM bank also offers financial assistance to the overseas financial institutions and
various government agencies for import of goods and services from India.
 Reloaning Options to Foreign Banks- The foreign banks are entrusted with funding from EXIM
bank in order to provide the same to the their clients across the globe for importing of goods from
India.