EXIM BANK OF INDIA

INTRODUCTION MISSION BACKGROUND OF THE EXIM BANK SIGNIFICANCE OF THE TOPIC OBJECTIVE OF THE STUDY

EXIM BANK OF INDIA

INTRODUCTION
Exim Bank (full name: The Export-Import Bank of India) is an Indian government-owned financial institution for the public sector created by an Act of the Parliament of India: the Export-Import Bank of India Act 1981. Exim Bank is managed by a Board of Directors, which has representatives from the Government, Reserve Bank of India, Export Credit Guarantee Corporation of India (ECGC), a financial institution, public sector banks, and the business community.. The Exim Bank of India, commonly known as Exim Bank, was set up on January 1, 1982 to take over the operation of the international finance wing of the IDBI and to provide financial assistance to exporters and importers and to function as the principal financial institution for coordinating the working of other institutions engaged in financing of exports and imports of Goods and services. Exim Bank provides refinance facilities to the commercial bank and financial institutions against their export-import financing activities. Commercial Banks have been playing an important role in helping Indias exports by providing exports were included in the priority arras for bank credit. During the 1992s alone in fact from 1992 to 1999, export credit by commercial banks increased three times from about Rs. 12 thousand to about Rs.36 thousand crores. By the end of the century, export credit formed 10.5% of the net bank credit.

EXIM BANK OF INDIA

It grants direct loans in India and outside for the purpose of exporters and imports, refinances loans of banks other modified financial institutions for

purpose of international trade, rediscounts since export bills for banks, provides overseas investment finance for Indian companies towards their equity participation in joint ventures abroad, and guarantees, along with banks, obligation on behalf of project exporters. It is also a coordinating agency in the field of international finance and it undertakes development of merchant banking activities in relation to exportoriented industries.

Exim bank extends lines of credit to overseas governments/ agencies nominated by them or financial institution overseas to enable buyers in those countries to import capital/ engineering goods, industrial manufactures and related services from India on deferred payment terms. This facility enables importers in those countries to import from India on differed credit terms as per the terms and condition already negotiated between Exim bank and the overseas agency. The Indian exporters can obtain payment of eligible value from Exim bank against negotiation of shipping documents, without recourse to them.

EXIM BANK OF INDIA

MISSION
Exim banks mission is to facilitate globalization of Indian Business. Our mission statement to develop commercially viable relationships with externally oriented companies by supporting their internationalization efforts, through a diverse range pf products and services.

BACKGROUND OF THE EXIM BANK:

We select Exim bank because its developing cross boarder Transaction. They provide finance for international transaction .The risk in foreign trade are varied, Exim Bank shared this risk. Exim bank provide refinance facility, concessional rate of interest on export credit, additional credits refinance setting upon export finance. Exim bank provides loans for the exports and imports of goods and services, such loans is provided not only to Indian exports and imports but also to the export and import undertake by agencies in third world countries or less developed countries. Growing industrialization also needed larger amounts for imports of raw materials and intermediate products.

EXIM BANK OF INDIA

SIGNIFICANCE OF THE TOPIC:

Exim bank provides facility to the exporter as well as importer. They provide credit directly to overseas importers of Indian goods and services. Exim bank is developing international trade transaction. Exim bank provides term loan to the importers in their home countries for imports of Indian capital goods. As the apex bank in the export import financial sector, the exim bank extends refinance facility on export credit provided by Indian Government bank.

OBJECTIVE OF THE STUDY:

Study on exim bank is very important because there need to develop export import of the country. There are many fault and difficulties in the foreign trade; study on exim bank is helpful to dictating this fault and difficulties. Indias export business is not developed that much but study on exim bank helping to promote recommendation of the exim bank. Study on exim bank also gives a right direction to the working of exim bank. There need right way of progress of the exim bank. Exim bank following guidelines of SEBI. In these project studies show a guidelines and control on exim bank.

EXIM BANK OF INDIA

CAPITAL RESOURCES OF THE EXIM BANK WORKING OF THE EXIM BANK OBJECTIVE OF THE EXIM BANK FUNCTION OF THE EXIM BANK

EXIM BANK OF INDIA

CAPITAL RESOURCES OF EXIM BANK

The issued and paid up capital of the exim bank is now Rs. 440 crores and Rs. 100 wholly subscribed by the central government. The bank raises additional recourses through borrowing from the government of India, from RBI and from the market through the issue of bonds and debentures. It borrows foreign currency from other countries. The bank began its lending operations rom March, 1982. Till June, 1982, t has extended assistance up to Rs. 133 crores to the export sector in various ways. The establishment of exim bank may be regarded as right step in the export promotion policy and programmed of the government. During 1984, the exim bank sanctioned various programmes of funded assistance of Rs. 430 crores. It also launched a new programmer to provide term finance for export oriented units, under which assistance was provided through a consortium for establishing a 100 per cent export unit in the ceramics industries.

EXIM BANK OF INDIA

WORKING OF THE EXIM BANK

The buyer to obtain allocation of funds under the credit line from the borrower. The exporter then enters into contract with the buyer, for eligible items covered under the line of credit. The contracts would need to conform to the basic terms and conditions of the respective credit lines. The delivery period stipulated in the contracts should be such that credit can be drawn from Exim bank within the terminal disbursement date stipulated under the respective line of credit agreements. Also, all contracts should provide for pre-shipment inspection by the buyer or agent nominated by buyer. The buyer arranges to comply with procedural formalities as applicable in his country and then submits the contract to the borrower for approval. The borrower in turn forwards copies of the contract to exim bank for approval. Exim bank advises approval of the contract to the borrower establishes an irrevocable sight letter of credit (L/C). A single L/C is to be opened, covering the full eligible value of the contract including, freight and insurance as laid down in the contract. The letter of credit is advised through a bank in India designated by Exim bank. Exporter ships the goods covered under the contract and presents documents for negotiation to the designated bank. The bank forwards negotiated documents to the buyer. On receipt of clean non- negotiable set of shipment documents along with the relative invoices, inspection certificate that documents negotiated are as per terms of L/C and without reserve from the negotiating bank and after having satisfied itself, that all formalities have been complied with in conformity with
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the terms of the credit Agreement, Exim bank reimburses the eligible value of shipment in equivalent rupees at spot exchange rate to the negotiating bank for payment to the exporter.

OBJECTIVES OF EXIM BANK:

To translate national foreign trade policies into concrete action point. To provide alternate financing solution 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 relationship with other export development and financing agencies, multilateral 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. To ensure an integrated and coordinated approach in solving the allied problems encountered by exporters in India. To pay specific attention to the exports of capital goods. funding agencies and national trade and

EXIM BANK OF INDIA

To facilitate and encourage joint ventures and export of technical services and international merchant banking. To extend buyers credit and lines of credit. Tap domestic and foreign markets for resources for undertaking developmental and financial activities in the export sector.

FUNCTION OF EXIM BANK:

The functions of Exim bank include:
Financing of exports and imports of goods and services, not only 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 enables 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 exports or imports. Provide technical, administrative and financial assistance to parties in connection with export or import.

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EXIM BANK OF INDIA

AT PRESENT THE EXIM BANK UNDERTAKES THREE BOARD CATEGORIES AS FOR EXAMPLE:
Loans to Indian companies are provided under the following:
Direct financial assistance to exporters; Technology and consultancy services; Overseas investment financing for equity participation by an Indian company in joint ventures abroad; Pre- shipment credit in case of export contact for capital goods.

Loans

to

foreign

governments,

companies

and

financial

institutions are provided under:

Overseas buyers credit scheme; Lines of credit to foreign governments; Relenting facility to banks overseas.

Loans to commercial banks in India include;

Export bills re- discounting scheme ( short term bills) Refinance of export credit.

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FUNDED ASSISTANCE:
The above 9 forms of lending by Exim bank are collectively called funded assistance programmers which are extended to enable Indian exporters to operate in international markets. Exim banks funded assistance facilities amounted to Rs. 240 crores during 1982 and had risen gradually to Rs. 1600 crores during 1992-93 but declined shapely to Rs. 650 crores in 1993-94. Construction projects accounted for two- thirds of the assistance sanctioned underfunded programmers. Power generation and distribution equipment, commercial vehicles, transport equipments and textile machinery were other important projects which received assistance from Exim bank.

NON- FUNDED ASSISTANCE:

The second form of assistance, known as unfunded assistance, is by way of guarantees of various types. Guarantees available are advance payment and performance guarantees, retention guarantees and guarantees for raising finance abroad. The Exim bank participates with commercial banks in India in issuance of guarantees in foreign currencies on behalf of Indian exporters/ contractors in favor of overseas importers/ employees and banks. The exim bank executed guarantees of Rs. 102 crores in 1982, Rs. 75 crores in 1983 and only Rs. 50 crores during 1989-90.

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EXIM BANK OF INDIA

The decline in guarantees was due to the fact that this facility was almost extended to civil engineering construction contracts and this facility had come down due to economic problem faced by some countries.

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EXIM BANK OF INDIA

ROLE OF EXIM BANK FINANCE FOR EXPORT ORIENTED UNITS EXPORT SERVICES

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ROLE OF EXIM BANK

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 Project and services Export and Deferred Payment Exports (for amounts above certain value 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 authorized foreign exchange dealers. This inters- institutional Working Group accords clearance to contracts (at the post award stage) sponsored by commercial banks 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.

FINANCING SERVICES OF THE EXIM BANK:

Exim bank offers a diverse range of financing services for the Indian exporter, including a variety of Export credit facilities and finance for Export oriented companies.

EXPORT CREDIT:Exim Bank offers the following Export Credit facilities, which can be availed of by Indian companies, commercial banks and overseas entities.
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For Indian Companies executing contracts overseas Pre-shipment credit:Exim Bank's Pre-shipment Credit facility, in Indian Rupees and foreign currency, provides access to finance at the manufacturing stage - enabling exporters to purchase raw materials and other inputs.

Supplier's Credit
This facility enables Indian exporters to extend term credit to importers (overseas) of eligible goods at the post-shipment stage.

For Project 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 of export contracts and import transactions.

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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 Supplier's 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 categorized as Deemed Exports in the Foreign Trade Policy of India or contracts secured under international competitive bidding or contracts under which payments are received in foreign currency, can avail of credit under our Finance for Deemed Exports facility, aimed at helping them meet cash flow deficits.

For Overseas Entities Buyer's Credit

Overseas buyers can avail of Buyer's Credit from Exim Bank, for import of eligible goods from India on deferred payment terms.

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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.

FINANCE FOR EXPORT ORIENTED UNITS (EOUs)

For the purpose of 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
1 For Setting up EOUs
Exim Bank offers term loans for setting up new projects, and for acquisition of assets for modernizations, up gradation, expansion of existing units. The bank also extends 100% refinance to commercial banks, for term loans sanctioned by the lending bank to an EOU.

2. 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 enables them to upgrade their manufacturing facilities.

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3. For software Industry

The Bank offers a comprehensive financing! Services package for the software industry. These include project / equipment finance, working capital finance, 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 extends facilities setting up of Software Technology Parks (STPs).

4.

For Indian Companies involved in Port Development and

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

EQUIPMENT FINANCE
1. Finance for Production Equipment
To cater to the non-project related capital expenditure of EOUs, Exim Bank offers a line of credit for acquisition of imported / indigenous equipment, including equipment for packaging, pollution control.

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2. For Vendors of EOUs

Under the Export Vender Development Finance facility, Exim Bank offers term loans to vendors of EOUs, to enable them to acquire plant and machinery and other assets required for increasing export capability.

WORKING CAPITAL FINANCE

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

OTHER FACILITIES
1. Finance for R& D and Export Production 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.

2. Finance for Services Sector

Services sector financed by Exim Bank include entertainment, health care, hospital and shipping. Bank has entered into the business of film financing on a very selective basis. Bank's approach towards film financing is to focus on foreign exchange earning projects and select borrowers with proven track record.

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3. Underwriting
Exim Bank extends underwriting commitment to Indian exporters, to help them raise finance from capital markets through public / right issues of shares / debentures.

4. Export Marketing Finance

Exim Bank offers term loans to Indian companies, to aid them in their efforts to penetrate and retain presence in overseas markets, particularly in Developed countries.

5. Import Loans
Exim Bank finance bulk imports of consumable input and canalized items undertaken by manufacturing companies.

6. Guarantee Facility
Exim Bank issues different kinds of guarantees for EOUs. These include: a) export obligation guarantees; b) deferred payment guarantees; and c) guarantees in favour of commercial bank / lending institutions abroad on behalf of Indian exporters.

Finance for Ventures 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.
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Besides, Exim Bank also undertakes Direct Equity Stake in Indian Ventures abroad, to enable Indian companies to supplement their equity with Exim Bank's equity contribution.

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DEBT RESTRUCTURING SCHEME

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DEBT RESTRUCTURING SCHEME FOR SMALL AND MEDIUM ENTERPRISES (SMEs)

RBI has issued guidelines vide its circular no. DBOD: BP: BC. No. 21.04.132/2005-06 dated September 6, 2005 for restructuring of debt of all eligible small and medium enterprises, at terms which are, at least as favorable as CDR mechanism in the banking sector. As per the said RBI guidelines, each bank in required to place its own debt-restructuring scheme for SMEs to the Board. Accordingly, Exim Banks Board of Directors at its meeting held on January 21, 2006 has approved the following debt restructuring scheme for SMEs.

SEM: DEFINITION
For the purpose of qualifying under the scheme, SMEs will be as defined in RBI Circular No. RPCD.PLFNS.BC.31/06.02.31/2005-06 dated August 19, 2005, which is reproduced below: At present, a small scale industrial unit is an undertaking in which investment in plant and machinery, does not exceed Rs. 1 crore, except in respect of certain specified items under hosiery, hand tools, drugs and pharmaceuticals, stationary items and sports goods, where this investment limit has been enhanced to Rs. 5 Crores. A comprehensive legislation, which would enable the paradigm shift from small-scale industry to small and medium enterprises, is under consideration of the parliament. Pending enactment of the above legislation, current SSI/tiny industries definition may continue. Units with investment in

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plant and machinery in excess of SSI limit and up to Rs. 10 crores may be treated as Medium Enterprises (ME).

ELIGIBILITY CRITERIA
These guidelines would be applicable to the following entities, which are viable or potentially viable: All non-corporate SMEs irrespective of the level of due to banks. All corporate SMEs, which are enjoying banking facilities from a single bank, irrespective of the level of dues to the bank. All corporate SMes, which have funded and non-funded outstanding upto Rs. 10 Crore under multiple / consortium banking arrangement.

Accounts involving willful default, fraud and malfeasance will not be eligible for restructuring under these guidelines. Ensure completion of all formalities in seeking approval from BIFR before implementation of the package.

VIABILITY CRITERIA
The it must become viable in 7 years and the repayment period for restructured debt will not exceed 10 years. For this purpose, all eligible units will comply with the following subject to any relaxation that may be considered by Banks Committee of Executives (COE) or by Board / MC (if the original sanction was accorded by Board / MC) depending on the merits of the case:

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Debt Service Coverage Ratio (DSCR): Should have average DSCR of more than 1.25, and more than 1.00 in any year of the projected period. The break-even analysis should be carried out, and operating and cash breakeven points should be worked out. The companys past performance for 3-5 years and future projections for the period of proposed repayment would be examined. Promoters sacrifice and additional funds to be brought by them should be a minimum of 15% of creditors sacrifice.

PRUDENTIAL ACCOUNTS

NORMS

FOR

RESTUCTURED

Treatment of standard accounts subjected to restructuring:

A rescheduling of the installments of principal alone would not cause a standard asset to be classified in the sub-standard category, provided the borrowers outstanding is fully covered by tangible security. However, the condition of tangible security may not be made applicable in case where outstanding is up to Rs. 5.00 Lakh, since the collateral requirement for loans up to Rs. 5.00 Lakh has been dispensed with for SSI/tiny sector. A rescheduling of interest element would not cause an asset to be downgraded to sub-standard category subject to the condition that the amount of sacrifice, if any, in the element of interest, measured in present value terms is either written off or provision made to the extent of sacrifice involved. In case there is a sacrifice involved in the amount of interest in

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present value terms, as at (b) above, the amount of sacrifice should either be written off or provision made to the extent of the sacrifice involved. Treatment of sub-standard / doubtful accounts subjected to restructuring: A rescheduling of the installments of principal alone, would render a substandard / doubtful asset eligible to continue in the sub-standard / doubtful category for specified period (i.e. a period of one year after the date when first payment of interest or of principal, whichever is earlier, falls due under the rescheduled Terms, subject to satisfactory performance during the period.) Provided the borrowers outstanding is fully covered by tangible security. However, the condition of tangible security may not be made applicable in cases where outstanding is up to Rs. 5.00 Lakh, since the collateral requirement for loans up to Rs. 5.00 Lakh has been dispensed with for SSI / tiny Sector. A rescheduling of interest element would render s sub-standard / doubtful asset eligible to be continue to be classified in the sub-standard / doubtful category for the specified period subject to the condition that the amount of Sacrifice, if any, in the element if interest, measured in present value terms is either written off or provision is made to the extent of sacrifice involved. Even in case where the sacrifice is by way of write off of the past dues, the asset should continue to be treated as substandard / doubtful.

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ADDITONAL FINANCE
The rehabilitation package will comprise restructuring of present dues to the Bank and sanction of additional credit facilities, if required. Such additional finance will be treated as standard asset in all accounts one year after the date when first payment of interest or of principal, whichever is earlier, falls due under the approved restructuring package. If the restructured asset does not qualify for up gradation at the end of the above period, additional finance shall be placed in the same asset classification category as the restructured debt.

UPGRADATION OF RESTRUCTURED ACCOUNTS

The sub-standard / doubtful accounts as para 5 (a) & (b) above, which have been subjected to restructuring, whether in respect of principal installment or interest, by whatever modality, would be eligible to be upgraded to the standard category after the specified period, i.e. a period of one year after the date when first payment of interest or of principal, whichever is earlier, falls due under the rescheduled terms, subject to satisfactory performance during the period.

ASSET CLASSIFICATION STATUS

During the specified one-year period, the asset classification status of rescheduled accounts will not deteriorate if satisfactory performance of the account is demonstrated during the period. In case, however, the satisfactory performance during the one-year period is not evidenced, the asset classification of the restructured account would be governed as per the applicable prudential
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norms with reference to the pre-restructuring payment schedule. The asset classification would be bank-specific based on record of recovery of each bank, as per the existing prudential norms applicable to banks.

REPEATED RESTRUCTURING
The special dispensation for asset classification as available in terms of paragraphs 4, 5, 6 & 7 above, shall be available only when the account is restructured for the first time.

PROCEDURE
The borrowers shall submit a request to Exim Bank for restructuring his account in terms of RBI Debt Restructuring Scheme for Small and Medium Enterprises (SMEs). In case of eligible SMEs which are under consortium / multiple Banking arrangements, the barrower will submit his request to the bank having the maximum outstanding. However, the restructuring package will be worked out with the consent of the bank having the second largest share. All requests received by the Bank will be scrutinized to ensure that these are prima facie in order and are eligible for consideration as per the prescribed criteria. All proposals for restructuring will be submitted to COE or to the Board/MC, if the original sanction was accorded by Board/MC. After receipt of sanction, necessary documentation will be done for implementing the restructuring package.
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The whole process will be completed within 60 days of the receipt of the application.

RELIEFS & CONCESSIONS

Exim Bank may at its own discretion consider concessionary interest rate for restructuring package subject to a minimum of 2% below Banks PLR (BPLR). However, additional finance, if any, will be given at BPLR.

REVIEW
COE will review the progress in rehabilitation and restructuring of SME accounts on a quarterly basis and the Board will be informed on half-yearly basis.

DISCLOSURE
The Debt Restructuring Scheme for SMEs is being displayed on the Banks website and a copy of scheme is also being forwarded to SIDBI for placing on their website. The necessary disclosures in the published annual Balance Sheet of the Bank, under Notes of Accounts, will be done, as under. Total amount of assets of SMEs subjected to restructuring. [ (a) = (b) + (c) (d) ] The amount of standard assets of SMEs subjected to restructuring. The amount of sub-standard assets of SMEs subjected to restructuring.

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FAQs

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1.What is the size and nature of the existing staff of Exim Bank?
In comparison with other organizations with similar asset levels, Exim Banks staff strength is lean. As of March 2005, total personnel in the Bank numbered 193. Highly automated office systems ensure that personnel are equipped with timely and complete information and streamlined work processes. The human resources of the Bank include 139 professionals who are drawn from the Banks functions. They include bankers, business school graduates, chartered Accountants, economists, engineers and computer specialists.

How many types of finance are provided by export?

There are four types of finance provided by the export and import. Following are the percentage of finance provided by the export business. Four the purpose of financing, an Export Orientation of 10% of net sales, or annual export sales of Rs. 5 Crores, which is lower.

TYPES OF FINANCE
1) Project Finance 2) Equipment Finance 3) Working capital Finance 4) Others

PERCANTAGE
39.6 20.86 24.4 15.

In the export business Exim bank provide finance for increasing export business of the country. They provide 39.60% finance for the setting up new project, Modernization, up gradation of the project. Exim bank provide also equipment

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finance to acquire plant and machinery and other assets required for increasing export capability, 20.86% finance provide for Equipment. Exim Bank also provides 24.40% working capital finance. For the other they provide 15.14% finance, for service sector, export marketing finance.

3] What is the degree of emphasis placed on office automation and technology?

Exim Bank operates at the frontier of available office automation and technology. The Bank believes that human resources should primarily be utilized for activities that require knowledge, skills, analysis and discretionary choices. An array of state-of-the-art computer hardware, software, and telecommunications are available to the Banks personnel. Members of the staff make use of these facilities to the fullest extent feasible not only for nondiscretionary activities but also as necessary tools for optimizing their work output both in terms of quantity and quality. The lean staff strength makes it possible for the Bank to provide each officer with his/her own personal computer as well as unlimited access to office automation and technology.

4] What, in brief, is the nature of work culture in the Bank?

Right from its inception, Exim Bank has attached a great deal of importance to a congenial and challenging work environment. The objective has been to achieve

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excellence in its area of operations, not only in comparison with national organization but also in a global context. The bank has a private sector work ethic, while drawing upon the advantages thrown up by way of its public sector ownership. An important reason for this has been the relatively young age of the organization, which enabled the Bank to cast itself in a different mould right from inception without being saddled with a legacy of outmoded work practices. Some salient features of the work environment are the emphasis on office automation, an open office system, an independent doers work culture, and minimization. Officers work interpedently and self-sufficiently in all the activities that their job entails. A sense of togetherness and common purpose is sought to be fostered by the Banks in-house publication Eximius, and the annual staff get-together. The Eminent Persons Lecture Series bring persons who have achieved eminence in divers fields to interest and share their experience with officers.

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NO.OF EMPLOYEES Yes / No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Yes Yes Yes No Yes Yes No No Yes Yes

Possible Branches 20% 10% 20% 30% 20% 10% 40% 40% 40% 20%

of

opened

5] Is exim Bank Branches opened only in metro / developed cities? Is there any possibility to establish these branches in rural sector?
On these graph there shows number of employee who is working in exim bank. 75% people are told that exim bank opened only in metro cities areas. There is less possibilities to establish these branches in rural areas. Only 25% people say that there is possibility to established branches in rural area. Exim Bank branches opened only in metro / developed cities. An Exim Bank share is 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.

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6] Dose exim bank provide debt-restructuring scheme for Small and Medium Enterprises?
Yes 100%

No

0%

Exim bank provides debt-restructuring schemes for the medium enterprise as well as small enterprise. 100% employees says yes, that the exim bank provides debt-restructuring scheme for small as well as medium enterprises. As per the RBI Guidelines they provide debt-restructuring schemes.

7] Have it really help to develop the foreign trade of India

Yes No Not confirmed Exim bank is really help to develop the trade. 75% employees say that the exim bank is developing export as well as import. 5% people says that the Exim bank not useful for developing foreign trade of India.20% people say that exim bank is not confirmed that it is useful for export and import. There are many formalities for the transaction. Small investor cannot take active participation in 75% 05% 20%

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the enterprises, which have suffered reduced access to finance due to global financial crisis.

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ANNEXURE (NEWS AND ARTICLES)

WASHINGTON: The Export-Import Bank of India is getting a $60 million international trade facility to help support export-focused small and medium enterprises.
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The transaction follows the signing of a memorandum of cooperation between IFC and G-NEXID, an organization of emerging-market export credit agencies And development institutions focused on trade between developing countries in May. Exim Bank is playing a significant role in providing competitive trade finance for India's export sector, with a special focus on small and medium enterprises, given their reduced access to foreign-currency Financing amid the ongoing global financial crisis, an IFC release said. "This important transaction with our longstanding partners, IFC and Bank of Tokyo-Mitsubishi UFJ, will help us provide short-term foreign-currency trade finance," said TC Venkat Subramanian, chairman and managing director of the Exim Bank. "We hope it will also encourage other lenders to return to the Indian market and resume normal lending operations to Indian financial institutions." MUMBAI: Export-Import Bank of India (Exim Bank) said it has extended a $30-mn line of credit (LOC) to Mozambique to finance rural electrification projects in that country. The projects are in the provinces of Gaza, Zambezi and Nampula, Exim Bank said in a statement. This is the fifth Loc extended by Exim Bank to Mozambique at the behest of the Government of India, taking the total to $115 million, the statement said. The first Loc of $20 million was extended to Mozambique in September 2004, the second of USD 20 million in August 2006, the third of $20 million in August 2008 and the fourth of USD 25 million in December 2008. Under the LoCs, Exim Bank will reimburse 100 per cent of contract value to the Indian exporter upfront upon the shipment of goods.

In 2007-08, India's exports to Mozambique stood at USD 446 million, consisting primarily of petroleum products, primary and semi-finished iron and steel, non-basmati rice, pharmaceuticals, transport equipment, machinery and instruments, manufactures of metals, cotton yarn fabrics made-ups, plastic, and man-made yarn fabrics made-ups, the statement said.

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KOLKATA: Exim Bank will raise Rs 19,500 Crore during 2009-10 to provide export finance to Indian corporate, its CMD T C Venkat Subramanian said on Friday. Subramanian said, given the gloomy economic situation, raising availability of export trade finance was becoming a problem. During the current year, the bank would raise USD one million from foreign resources and Rs 14,500 Crore from domestic markets. In response to the crisis, he said Exim Bank was in discussions with similar agencies of other countries for arranging lines of credit. In this context, he said Exim Bank was talking to US Exim Bank and SACE of Italy. Meanwhile, the bank has tied up 150 million euro trade finance from European Investment Bank, he said at a FICCI banking conclave.

MUMBAI: Consortium finance, a well-established concept in the corporate world, has now entered the world of films. In a first of its kind deal, Exim Bank and Indian Overseas Bank (IOB) have come together to co-finance the Akshay Kumar-Katrina Kaif starrer De Dhana Dhan. The Rs 70-crore film has been sanctioned Rs 25 Crore from Exim and Rs 10 Crore from IOB.

The rate of interest is reported to be around 12.5 to 13% with the period being till the films release, the only collateral bring the negative of the film. Produced by Venus Records and directed by Priyadarshan, the film is expected to release in the third quarter of this year.

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Exim Bank forayed into the film finance four years ago and has, so far, disbursed close to Rs 33 Crore. It has seen a good ratio of success with movies like Dhoom and Veer Zaara.

IOB has financed a few films of AVM Productions in the South, such as the Rajnikanth starrer, Sivaji. Our policy is to finance up to 50% of a movies budget, up to a cap of Rs 25 Crore. Since De Dhana Dhans budget was Rs 70 Crore, weve decided to share the risk with IOB, said Matthew John, chief general manager, Exim Bank. Film budgets have hit an all time high over the past few years, with star prices spiraling. Venus chairman Ganesh Jain said De Dhana Dhan is his highest budgeted film, mainly because of the cost of the stars, which makes up 40% of the total costs. But, he remains

confident, saying, Recession does not affect good content, and this is not the first film we are making with Priyadarshan. Indeed, it is Venus track record over the past 25 years that has propelled IOB to finance its first Hindi film. We decided to go ahead with this film mainly

because of their track record. If this movies clicks, we will decide how to look at film financing Going forward, said S.N. Mishra, general manager, IOB.

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Export Import Bank of India (Exim Bank) is looking at promoting a grass root business fund, an initiative of the International Finance Corporation (IFC), for financing small and medium enterprises (SMEs). Under this fund, originally promoted by the IFC, seed capital is given to SMEs, mostly in the form of equity investment of up to 25 per cent, said T C Venkat Subramanian, chairman and managing director, Exim Bank, on the sidelines of a CII seminar in Kolkata on Wednesday. This apart, Exim Bank is also planning to promote MSMEs by financing up to 50 per cent of the expenses for export market development. During the current financial year, the bank is planning to raise a total of about Rs 19,500 crore, out of which Rs 14,500 crore would be raised in the domestic market, while about $1-1.2 billion is expected to be raised through international borrowings. We are interested in raising funds through Samurai bonds this year, but the amount will depend upon market conditions. We have tapped the Japanese market with Samurai bonds twice earlier and have had a good experience. We are also in touch with merchant bankers in this regard, Subramanian had said earlier. During the last financial year, the bank had raised Rs 17,650 crore, with $1,170 million raised in the international market.

New Delhi: Indias Exim Bank is working on a plan to capitalize on infrastructure projects in Africa that offers lucrative opportunities despite the global financial crisis and the continent accounts for over 50% of the banks line of credit.
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Export-Import (Exim) Bank of India, which has already provided line of credit (Loc) of about $2 billion to Africa to purchase Indian equipment and project exports, is considering another $600 million for the continent. Africa is the focus area of our operations...currently there are some lines of credit under consideration which could be in the terms of about $600 million, Exim Bank executive director SR Rao told reporters here. The credit could be extended to the areas like infrastructure projects, power generation and transmission, construction of roads, agriculture and education, Rao said. Africa accounts for more than half of Exim Banks Loc and the flow to is expected to rise. About 60% of our line of credit that have been extended by Exim Bank of India has, in fact, been to the African region, Rao said. The bank, in a typical year, extends Loc of $1 billion to $1.5 billion and in terms of the operative lines that are currently in place, the volumes are of the order around $3.7 billion, the director said. African economies have grown by an annual average of 5.8% in the last decade, according to a World Bank report. Over 400 delegates from African nations are participating in a three-day CII India-Africa business conclave which began here on Monday. Both sides would discuss projects worth over $12 billion during the conclave. Trade between the two regions had crossed $35 billion during 2007-08. PTI

Core sector to make India Ex-Im Banks largest market New Delhi, May 14: The US Export-Import Bank (Ex-Im Bank) said India would soon overtake Mexico to be the largest market for the bank in the next five years.

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With India looking for over $500 billion to set up world-class infrastructure, the US Ex-Im Bank said it would extend up to $10-billion loans to Indian companies through financial institutions for imports from the US mainly for infrastructure projects like new airports and power plants. The outstanding loan given by the US Ex-Im Bank to Mexico, with which the US has a free-trade agreement, is about $7 billion. The bank has inked agreements with Punjab National Bank and other financial institutions for extending a $2.2 billion line of credit to fund infrastructure projects in the country. The total credit includes a loan agreement of $800 million with Power Finance Corp Ltd, which was signed on Wednesday under US Ex-Im Bank's India Infrastructure Facility. The other pre-approved requests under the India Infrastructure Facility include $250 million each to India Infrastructure Finance Company, Industrial Development Bank of India, Industrial Development Finance Company, PNB and SBI, as well as $100 million to Infrastructure Leasing and Financial Services and $50 million to Indian Renewable Energy Development Agency. We have pre-approved lines of credit worth $2.2 billion for infrastructure projects. The content, either products or services, has to be originated from the US . In addition, we are looking at providing support worth around $6 billion,

including for aircrafts purchase by Jet and Air India over the next 2 to 5 years, US Ex-Im Bank Chairman and President James Lambright told reporters here.

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Extending its activities from the airline sector, the bank would also finance the airport infrastructure sector by promoting imports of earthmovers, package handling and air traffic control equipment from the US . We are indifferent to the nationality of the exporters. What we care about is the creation of jobs in the US and promotion of US goods and services, Lambright said. So far the Washington DC-based Ex-Im Bank has given its nod to $3.5 billion in financing from the US exports to India , including $500 millions for US equipment and services to Reliance refinery project. In 2007, Ex-Im Bank authorized $12.6 billion in financing an estimated $16 billion US exports worldwide. EXIM Bank Ties Up With EBRD to Push Exports from India Mumbai, March 5: The Export Import Bank of India (Exim Bank) has joined hands with EBRD, a regional multilateral financing agency, to promote exports from India to European and central Asian regions. EBRD offers a wide product range through loans, equity investments and guarantees, to assist its borrower countries in their transition to market economies. EBRD, which operates in 27 countries from central Europe to central Asia, finance projects spread across a wide range of sectors. Lending by EBRD is of the order of over euro 2 billion per year, Exim Bank said. Speaking at a seminar organized by Exim Bank, EBRDs head-business development, Bruno Balvanera, said: India is entering

on a fast-track economic growth and appreciated the efforts taken by India in achieving such growth through

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openness and market expansion. Given this background the east and central European countries, with which India has traditional relationship, are becoming close economic partners. Exim Banks managing director and CEO, TC Venkat Subramanian, in his inaugural address, said that the region served by EBRD has a great potential for trade and investment opportunities. To facilitate trade from India to this region, Exim Bank had launched a programme in association with EBRD, to support Indian exports to 27 borrower countries of EBRD, which include Russia, CIS and East-European countries. The programme envisages a credit enhancement facility extended by EBRD to Exim Bank for confirmation of letters of credit received by Indian exporters from pre-approved banks in 27 countries.

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CONCLUSION

CONCLUSION:
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I conclude that exim bank export promotion drive of the country and financing growing imports, the task of financing import and export should be entrusted to an independent body. Exim bank undertook to manage the operation of the international finance wing of the IDBI. 1] Exim bank is acting as the apex agency in the field of international finance. Exim bank has started in the rural sector; it provides support to rural people. 2] Size and nature of existing staff is very vast. They appoint many officers which work independently and self- efficiently. Exim bank uses much technology in the bank. They provide many services to exporter as well as importer. 3] Exim bank believes human resources, knowledge, skills and analysis. It works only in private sector. 4] Exim bank gives more important to the export, but Indias export is very less than import. They promote export through a variety of lending and services programmers. 5] Exim bank provides finance for the Indian exporter and importer. The finance is divided in the categories, which is necessary in the export business.

6] Exim bank following RBIs guidelines. They have control on the exim bank transactions. Exim bank starts schemes for small and medium enterprises.
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Bibliography
Books:

EXIM Bank Book, Export Import Finance books, Banking export finance book. AND www.eximbankindia.com

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