Exim Bank to borrow ₹63,000 cr from domestic and overseas markets

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Exim Bank of India plans to borrow ₹63,000 crore from domestic and international markets to support 10-12 per cent credit growth and repay foreign currency borrowings amounting to $1.2 billion.

The All India Financial Institution (AIFI), which facilitates trade and investment as India’s specialised export credit agency, had raised ₹60,000 crore (including ₹35,000 crore from domestic markets and ₹25,000 crore/$3.26 billion from overseas markets) in FY24, according to Harsha Bangari, Managing Director .

The bank is not looking at capital infusion from the Government in FY25 due to robust capital to risk-weighted assets ratio (CRAR) of 21.18 per cent (as of March-end 2024), including core capital of 19.56 per cent, she said.

Basel III guidelines

Bangari observed that with the bank shifting to Basel III prudential guidelines on capital adequacy with effect from April 1, 2024 , there could be release of capital. It will no longer face the earlier restriction of borrowings being limited to 10 times the net-owned funds.

The AIFI posted a 62 per cent year-on-year growth in net profit at ₹2,518 crore in FY24 against ₹1,556 crore in FY23 on the back of strong loan growth and decline in cumulative loan loss provisions to ₹2,600 crore (₹4,700 crore in FY23).

Loan portfolio increased 17.2 per cent y-o-y to ₹1,57,602 crore. Within overall loan portfolio, corporate loan book grew 49 per cent y-o-y.

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Bangari said the bank is looking at opening new offices across geographies – Madhya Pradesh and Nepal — in FY25 to cater to rising business opportunities.

Asset quality improved further, with gross non-performing assets (NPAs) and net NPAs position improving to 1.93 per cent (4.09 per cent) of gross advances and 0.29 per cent (0.71 per cent) of net advances, respectively.

Meanwhile, the bank is exploring the possibility of extending guarantees to commercial banks so that they give adequate and timely working capital to its exporter clients, said Deepali Agrawal, Chief Financial Officer.