Exim Bank Aims to Raise up to $4 Billion in Funding This Year
Export lender Exim Bank has unveiled its ambitious plan to raise a substantial amount of capital this year, ranging from $3.5 to $4 billion, in order to effectively finance its government-supported business ventures. Demonstrating robust financial performance, the bank reported a remarkable net profit of Rs 1556 crore for the fiscal year 2022-23, marking an impressive growth of 110 per cent.
Commenting on the bank's financial strategy, Ms. Harsha Bangari, the esteemed Managing Director of Exim Bank, emphasized that the institution primarily relies on its foreign currency reserves to facilitate policy business, particularly through the issuance of credit lines supported by the government. In light of their objectives, the bank is proactively exploring avenues to secure a significant funding target of $3.5 to $4 billion during the ongoing fiscal year.
In pursuit of reinforcing its financial capabilities, Exim Bank recently entered into a comprehensive master agreement with RXIL Global IFSC Ltd. This strategic collaboration enables the bank to effectively finance export receivables by leveraging the cutting-edge ITFS platform located in GIFT City. Furthermore, the bank has fostered valuable institutional linkages with various entities, thereby streamlining and facilitating exports from Micro, Small, and Medium Enterprises (MSMEs) in India.
Further fortifying their Trade Assistance Programme, Exim Bank has forged issuing bank agreements with 12 prominent overseas banks, master risk participation agreements with 10 esteemed financial institutions, and confirming bank agreements with 4 reputable banks within India. These strategic partnerships are aimed at augmenting the bank's overall trade facilitation initiatives and reinforcing its position in the market.
By undertaking these measures, Exim Bank is poised to bolster its financial position, enhance its capacity to support government-backed business ventures and foster sustainable economic growth through increased trade facilitation for Indian exporters.
Source: Economic Times