Export-Import Bank of India (EXIM) Bank

In this post, we shall study about EXIM Bank in India and its role.

Introduction

• Export-Import Bank of India (EXIM) Bank was established in the year 1982. It is a financial institution for handling the export finance institution of the country.
• It was established under the Export-Import Bank of India Act 1981.
• Government of India had set up EXIM Bank with an objective:
  • to enhance exports from India, and
  • to integrate the country’s foreign trade and investment with the overall economic growth.

Basic Informations About EXIM bank

Headquarters of EXIM Bank- Mumbai, Maharashtra

Authorized Capital of EXIM Bank: The authorised capital of the Exim Bank is Rs. 10,000 Crore.

EXIM Bank is wholly owned by the Government of India.

Managing Director of EXIM Bank: Harsha Bhupendra Bangari 

Basically EXIM Bank has two major objectives. These are:

• providing financial assistance to exporters and importers, and
• 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.

For this, EXIM Bank undertakes various activities. These are listed below.

Activities undertaken by EXIM Bank

Buyer’s Credit– Through this facility, the overseas buyer can open a “letter of credit” in favour of the Indian exporter and can import goods and services from India on deferred payment terms.

Corporate Banking– EXIM Bank financing programmes to export-oriented units by catering to long-term loan requirements that help exporters finance new projects, expand, modernize or purchase new equipment or carry out R&D. It also cater to their working capital and overseas investment requirements.

Lines of Credit- EXIM Bank provides Lines of Credit (LOC) to enable Indian exporters to enter new geographies or expand their business in existing export markets without any payment risk from overseas importers.

Overseas Investment Finance– EXIM Bank has enhanced export opportunities for India and driven the economic growth of the nation. It provides funded/ non-funded assistance to the Indian promoter company.

Project Exports– EXIM Bank has been providing a continous support to project activities in engineering, procurement, construction (civil, mechanical, electrical or instrumental).

Marketing Advisory Service– Marketing Advisory Services (MAS) Group of EXIM Bank plays a promotional role to create and enhance export capabilities and international competitiveness of Indian companies.

Research & Analysis– Exim Bank’s Research & Analysis Group (RAG) monitors trends in global and domestic economies to analyse their impact on Indian and other developing economies.

Export Advisory Service– Export Advisory Services Group [EAS] offers a wide range of information, advisory and support services, which enable exporters to evaluate international risks, exploit export opportunities and improve competitiveness.

Summary

• Export-Import Bank of India (EXIM) Bank was established in the year 1982. It is a financial institution for handling the export finance institution of the country.
• It was established under the Export-Import Bank of India Act 1981.
• Headquarters of EXIM Bank- Mumbai, Maharashtra
• Authorized Capital of EXIM Bank: The authorised capital of the Exim Bank is Rs. 10,000 Crore.
• EXIM Bank is wholly owned by the Government of India.
• Managing Director of EXIM Bank: David Rasquinha

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