Home / Business / Money / EXIM Bank plans to raise Rs 13,000 crore in FY16

EXIM Bank plans to raise Rs 13,000 crore in FY16

EXIM Bank plans to raise Rs 13,000 crore in FY16

Enthused over the allocation of Rs 1,300 crore in the Union Budget, Export-Import Bank of India is now planning to raise an additional Rs 13,000 crore in the next fiscal, a top official said on Thursday.

Export-Import Bank of India Deputy Managing Director David Rasquinha said the bank was “soundly capitalised” and the capital adequacy ratio was around 15 percent. During the Budget presentation made by Union Finance Minister Arun Jaitley last week, a sum of Rs 1,300 crore of capital has been earmarked for the EXIM Bank.

Elaborating, he said: “Last year also we received Rs 1,300 crore as capital. I want to emphasise this capital is for the bank to grow. It is not because we are not meeting capital adequacy ratio.

If the government gives Rs 1,300 crore, we can borrow up to 10 times of that number”. He further said: “From the government’s allocation of Rs 1,300 crore, we may raise up to Rs 13,000 crore using various instruments. Last year the bank raised about USD 1.3 billion from various markets”.

Asked on outlook for the lender during the current financial year, he said, the total (cumulative) exposure of the bank was expected to grow around Rs 12,000 crore compared to last financial year’s Rs 9,000 crore.

“Last year, the growth was about Rs 9,000 crore. From Rs 9,000 crore it may go up to Rs 12,000 crore this fiscal. That is the range,” he said.

Noting that Sri Lanka was the largest single exposure for the bank in receiving disbursements of about USD 2.50 billion, he said: “Opportunity in SAARC countries are huge. After Sri Lanka, it was Nepal which had received total outstanding of USD 1.4 billion from the bank”.

The bank’s major business contributors was southern African countries contributing 40 percent followed by SAARC countries about 30 percent while remaining across various geographies. 


Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...