PROJECT ON

EXPORT IMPORT BANK OF INDIA (EXIM BANK)

BACHELOR OF COMMERCE-

BANKING & INSURANCE

SEMESTER V

2008-2009

SUBMITTED B

SHILPA SONA!ANE

ROLL NO" ##

PROJECT ON

EXPORT IMPORT BANK OF INDIA (EXIM BANK)

BACHELOR OF COMMERCE $ BANKING & INSURANCE SEMESTER V

SUBMITTED IN PARTIAL FULFILLMENT OF THE RE%UIREMENTS FOR THE A!ARD OF THE DEGREE OF BACHELOR OF COMMERCE $ BANKING & INSURANCE&

B SHILPA SONA!ANE ROLL NO" ##

CERTIFICATE

DECLARATION
1I

Miss.Sneha Sundrani, student of B.Com Banking & Insurance Semester V (2008-2009 , !ere"# dec$are t!at I !a%e com&$eted t!e 'ro(ect on Customer Relationship Management in Banks (Private and Public Sector) in t!e academic #ear 2008. The information submitted is true and original to the best of my

knowledge.

S'() *+,-. /0 S+,1.)+

2222222
SHILPA SONA!ANE R/33 N/-##

ACK

!"#$%&$M$ '

Any accomplishment requires the effort of many people and this work is no different. This pro ect would ust not ha!e been complete without the !aluable contributions from !arious people whom I ha!e interacted with in the course of its completion. I would first and foremost thank the "umbai #ni!ersity for designing such a speciali$ed course. I am especially thankful to my pro ect guide M4& S*5)* M*36* and our course co%coordinator M-4& H..)* T7*88*- for her encouragement& guidance and constant moti!ation which ser!ed as a dri!ing force in the successful completion of this pro ect. I also thank our re!erend principal D-& M-4& I)1, S7*7*)' for gi!ing me an opportunity to present a creati!e work in the form of pro ect.

I would like to thank all the fi!e bank managers who pro!ided me the primary information. I also take this opportunity to e'press my sincere gratitude to the library staff that has pro!ided me right information and study material at the right time.

(astly I would like to thank my colleagues& my parents& my sister and all those people who ha!e lent me a helping hand in finishing this pro ect& whose names are too numerous to be mentioned here. It is said that )*ratitude is the hearts

memory+, well& the memory of all help and assistance acquired during the course of this pro ect will remain in my heart as gratitude fore!er-------.

ORIGIN AND HISTOR

T7. E95/-+-I:5/-+ B*)8 A;+< =98=" An act to establish a corporation to be known as the E'port%Import .ank of India for pro!iding financial assistance to e'porters and importers& and for functioning as the principal financial institution for co%ordinating the working of financial institutions engaged in financing the e'port and import of goods and ser!ices with a !iew to promoting the country/s international trade and for matters connected therewith and incidental to.

H'4+/-6"
This Act e'tends to the whole of India. 0ith effect from the date i.e. 1eptember 2342& as the Central *o!ernment by notification& appointed& a corporation 5nown as the E'port Import .ank of India was established for the purposes of this Act.
The E'port Import .ank of India& commonly known as the E6I" .ank& commenced operations in "arch 2347. It was set up so as to take o!er the operations relating to

e'port finance which the I8.I 9Industrial 8e!elopment .ank of India: had been handling since the year 23;<. E'im .ank acts as the ape' financial institution relating to financing for foreign trade. It pro!ides financial assistance by way of direct loans and ad!ances for the purpose of e'port or import&

rediscounting of usance e'port bills for banks and finance for international trade acti!ities.

MISSION
E'im .anks mission is +/ 0*;'3'+*+. (3/>*3'?*+'/) /0 I)1'*) B,4').44 .

E'im .anks mission statement" @T/ 1.A.3/5 ;/::.-;'*336 A'*>3. -.3*+'/)47'54 B'+7 .9+.-)*336 /-'.)+.1 ;/:5*)'.4 >6 4,55/-+')( +7.'- ')+.-)*+'/)*3'?*+'/) .00/-+4< +7-/,(7 * 1'A.-4. -*)(. /0 5-/1,;+4 *)1 4.-A';.4&C

O>D.;+'A.
The ob ecti!e of the bank is%

() *or providing *inancial assistance to e+porters and importers, and *or *unctioning as the principal *inancial institution *or coordinating the -orking o* institutions engaged in *inancing e+port and import o* goods and services -ith a vie- to promoting the countr./s international trade)0

() shall act on business principles -ith due regard to public interest0 as Stated

1n the $+port21mport Bank Act,3453.

OBJECTIVES
1 To translate national foreign trade policies into concrete action points. 2 To pro!ide alternate financing solutions to the Indian e'porter&

aiding him in his efforts to be internationally competiti!e.

3 To de!elop mutually beneficial relationships with the international

financial community.
4 To initiate and participate in debates on issues central to India/s

international trade.
5 To forge close working relationships with other e'port de!elopment

and financing agencies& multilateral funding agencies and national trade and in!estment promotion agencies.
6 To anticipate and absorb new de!elopments in banking& e'port

financing and information technology.

7 To be responsi!e to e'port problems of Indian e'porters and

pursue policy resolutions.

'he !rgani6ation7 !b8ective, 9ision : ;unctions

T7. E9': B*)8 *':4 +/ 5-/:/+. I)1'*E4 ')+.-)*+'/)*3 +-*1.& T7. L/(/ -.03.;+4 +7'4&T7. L/(/ 7*4 * +B/-B*6 4'()'0';*);.& T7. ':5/-+ *--/B '4 +7')).- +7*) +7. .95/-+ *--/B& I+ *34/ -.03.;+4 +7. *': /0 A*3,. *11'+'/) +/ .95/-+4&

T7. O-(*)'?*+'/)"
E'im .ank is wholly owned by the *o!ernment of India. The authori$ed capital of the .ank is Rs. 7<<< Crores& of which and Rs. 2<<< Crores respecti!ely& has been fully subscribed by the Central *o!ernment. The .ank

raises additional resources through borrowing from the *o!ernment of India& from the R.I and from the market through the issue of bonds and debentures. It borrows foreign currency form other countries as well. E'im bank is managed by a .oard of 8irectors& which has representati!es from the *o!ernment& Reser!e .ank of India& E'port Credit *uarantee Corporation 9EC*C: of India& a financial institution& public sector banks& and the business community.

THE PEOPLE
E'im bank is a !irtual melting pot of thri!ing minds from a !ariety of disciplines. The bank has a total staff of 72= hailing from backgrounds as di!erse as banking& engineering& business management& information technology& accountancy& economics and liberal arts. 0hat they all ha!e in common& howe!er& is an underlying passion for professional e'cellence. The creati!e synergy produced by a brain trust composed of indi!iduals with !astly different styles of thinking has helped the .ank to constantly inno!ate& and come up with the original solutions > solutions beyond banking.

CORPORATE PHILOSOPH
E'im banks corporate philosophy is built on two pillars? @eople orientation and customer focus.

The .anks belie!es that its people are its key resource. Therefore& the .anks seeks to de!elop its human resource by moti!ating them through challenging assignments& upgrading their skills through

training programmes& and recogni$ing professional e'cellence.

0e follow an office% oriented, non%hierarchical work culture and open office plan facilitating a free flow of interaction between and within groups. As a model corporate citi$en& the .ank maintains an equal ratio of men and women 92?2: .the .anks high le!el of office automation& and a lean and multi%skilled staff enables optimum efficiency and profitability.

Customer%responsi!eness is germane to the .anks philosophy. The .ank constantly seeks to inno!ate and impro!e its products& processes and deli!ery mechanisms& and thereby minimi$e response time and ma'imi$e customer equity. Aur interacti!e mode of analysis and decision%making& through multi disciplinary cross%functional groups ensures that the best possible business solution is offered to the customer.

GLOBAL NET!ORKING
E'im bank is quite unique in its global and national network of institutional and professional linkages &O,- 0'A. /A.-4.*4 /00';.4-*+ D,>*'< J/7*)).4>,-(< L/)1/)< S')(*5/-. *)1 !*47')(+/) D&C&% ha!e forged strategic institutional linkages for the bank with?

"ultilateral agencies such as 0orld .ank& Asian de!elopment

.ankF
2 3 4

E'port credit agenciesF Trade and in!estment promotion agencies abroad, and Trade and industry association in India.

The banks e'tensi!e global network& supported by the Indian missions abroad makes it uniquely capable of offering ad!isory ser!ices to Indian companies looking for marketing opportunities& buyer information& technology suppliers and partners for o!erseas and domestic oint !entures. Further& our o!erseas

office enables us to garner economic and commercial intelligence on countries& companies and pro ects& assess credit risks& re!iew competiti!e e'port practices and pro!ide alerts on new e'port opportunities.

T7. N'). D/:.4+'; O00';.4 /0 +7. B*)8

Belps to respond to regional de!elopment acti!ities in the e'port sector. They identify special needs of the e'port business through close interaction with e'isting and prospecti!e clients and suggest inno!ati!e instruments appropriate to the regions potential. They also regularly interact with commercial de!elopment Cgo!ernment agencies& and strengthen the banks policy mechanism with their critical inputs on market perceptions and the e'port en!ironment.

8etailed appraisals& legal documentation& initial processing of loan disbursement requests& and monitoring of loans& including site !isits& inspection of assets charged to the bank and o!erall monitoring of the performance of the companies are also done at domestic offices.

SOURCES OF FUNDS2

As at "arch D2&7<<E&the bank had a paid up capital of R4 9&# >'33'/)< and its net worth was -42G&20 >'33'/). They also raise funds from domestic and international markets.

ORGANISATIONAL SET-UP
E'im bank is managed by a .oard of 8irectors& which has high le!el representati!es from the *o!ernment& Reser!e .ank of India& E'port Credit *uarantee Corporation of India& public sector .anks& academia and business community. 0ith its headquarters in "umbai& the bank has nine regional offices o!erseas.

The banks functions are segmented into se!eral operating groups including

C/-5/-*+. >*)8')( (-/,5 which handles a !ariety of financing programmes for& E'port Ariented #nits 9EA#s:& importers& and in!estment by Indian companies.

P-/D.;+ 0')*);.H+-*1. 0')*);. (-/,5 which handles the entire range of e'port credit ser!ices such as suppliers credit& pre%shipment credit& buyers credit& finance for e'port of pro ects and consultancy ser!ices& guarantees& forfeiting.

L').4 /0 ;-.1'+ (-/,5% lines of credit 9(AC: is a financing mechanism that pro!ides a safe mode of non >recourse financing option to Indian e'porters& especially to 1"Es& and ser!es and an effecti!e market entry tool. E'im banks e'tends (ACs to so!ereign go!ernments& central banks& regional de!elopment banks& o!erseas financial institutions and other entities o!erseas& to enable buyers in those countries& to import equipment& goods and ser!ices from India& on deferred credit terms.

A(-' >,4').44 (-/,5& which has been put in place to spearhead the initiati!e to promote and support Agri > e'ports. The *roup handles pro ects and e'port transactions in the agricultural sector for financing&

S:*33 *)1 :.1',: .)+.-5-'4.4 (-/,5 has been established to cater to the specific financing requirements of e'port oriented 1"Es.The group handles credit proposals from 1"Es under !arious leading programmes of the bank.
E95/-+ 4.-A';.4 (-/,5 offers a !ariety of ad!isory and !alue% added information ser!ices aimed at trade and in!estment

promotion.
Apart from these& there are 1upport 1er!ices *roups& which include "

R.4.*-;7 *)1 P3*))')(< C/-5/-*+. F')*);.< L/*) -.;/A.-6< I)+.-)*3 A,1'+< M*)*(.:.)+ I)0/-:*+'/) S.-A';.4< R'48 M*)*(.:.)+< I)0/-:*+'/) T.;7)/3/(6< L.(*3< H,:*) R.4/,-;.4 M*)*(.:.)+ *)1 C/-5/-*+. A00*'-4&

E!ol!ing Fision

F,);+'/)4"
1) Financing of e'ports and imports of goods and ser!ices& not only

of India but also of third world countries.

2) Financing of e'ports and imports of machinery and equipment on

lease basis.

Financing of oint !entures in foreign countries.

3) @ro!iding loans to Indian parties to enable them to contribute to

the share capital of oint !entures in foreign countries.

4) #ndertake

limited merchant

banking functions

such

as

underwriting of stocks& shares& bonds or debentures of companies engaged in e'port or import, and
5) @ro!ide technical administrati!e and financial assistance to

parties in connection with e'port and import.

THE ROLE2
E'im bank plays a four%pronged role with regard to India/s foreign trade? those of a coordinator& a source of finance& consultant and promoter.

COORDINATION ROLE
E'im bank is the coordinator of the working group mechanism for clearance of pro ects and ser!ices e'ports and deferred payment e'ports 9for amounts abo!e a certain !alue%currently #1G 2<< million:. The working group comprises E'im bank& *o!ernment of India Representati!es 9"inistries of Finance& Commerce& E'ternal Affairs:& and Reser!e .ank of India, e'port credit *uarantee Corporation of India limited and commercial banks that are authori$ed foreign e'change dealers.

This inter%institutional 0orking *roup accords clearance to contracts 9at the post award stage: sponsored by commercial banks or E'im .ank& and operates as one% window mechanism for clearance of term e'port proposals. An its own E'im bank can now accord clearance to pro ect e'port proposals up to #1 G2<<million in !alue.

EXPORT CREDIT&

E'im bank offers the following e'port credit facilities& which can be a!ailed of by Indian companies& commercial banks and international entities.

FAR IH8IAH CA"@AHIE1 E6EC#TIH* CAHTACT1 AFER1EA1-

 PRESHIPMENT CREDIT& E'im banks pre%shipment credit facility& in Indian rupees and foreign currencies& pro!ides access to finance at a manufacturing stage& enabling e'porters to purchase raw materials and other inputs. SUPPLIERS CREDIT This facility enables Indian e'porters to e'tend term credit to importers 9o!erseas: of the eligible goods at the post shipment stage.

FOR PROJECTS EXPORTERS&

Indian pro ect e'porters incur Rupee e'penditure while e'ecuting o!erseas pro ect e'port contracts i.e. costs of mobili$ationCacquisition of materials& personnel and equipment etc. E'im .ankIs facility helps them meet these e'penses.

F/- E95/-+.-4 /0 C/)4,3+*);6 *)1 T.;7)/3/(';*3 S.-A';.4& E'im .ank offers a special credit facility to Indian e'porters of consultancy and technology ser!ices& so that they can& in turn& e'tend term credit to o!erseas importers.

G,*-*)+.. 0*;'3'+'.4& Indian companies can a!ail of these to furnish requisite guarantees to facilitate e'ecution and e'port contracts and import transactions.

F/-0.'+')(& Forfeiting is a financing mechanism that enables a company to con!ert credit sale to cash sale& on )without recourse+ basis. E'im bank acts as facilitator for the Indian e'porter& enabling him to access the ser!ices of an o!erseas forfeiting agency.

FINANCE FOR EXPORT ORIENTED UNITS&

'$RM ;1 A C$ ;!R $<P!R'1 & C!MPA 1$S

@ro ect Finance 1 Equipment Finance 2 Import of Technology J Related 1er!ices 3 8omestic Acquisitions of businessesCcompaniesCbrands 4 E'port @roduct 8e!elopmentC Research J 8e!elopment 5 *eneral corporate finance.

!ORKING CAPITAL FINANCE FOR EXPORTING COMPANIES&

F,)1.1 1o 0orking Capital Term (oans KL 7 yearsM 2o (ong Term 0orking Capital Kup to N yearsM 3o E'port .ills 8iscounting 4o E'port @acking Credit 5o Cash Flow financing.

2 N/)-0,)1.1 1o (etter of credit limits 2o *uarantee limits

!/-8')( C*5'+*3 F')*);. F/- N/)- E95/-+')( C/:5*)'.4&

.ulk Import of Raw "aterial.

T.-: F')*);. F/- N/)- E95/-+')( C/:5*)'.4&

Import of Equipment
@re% shipment Credit

E95/-+ F')*);.&

@ost 1hipment Credit 1 .uyersI Credit 2 1uppliersI Credit Kincluding deferred payment creditM 3 .ills 8iscounting 4 E'port Recei!ables Financing 5 0arehousing Finance 6 E'port (ines of Credit 9Hon%recourse finance:

EI,'+6 P*-+';'5*+'/) I) I)1'*) E95/-+')( C/:5*)'.4.

To part finance pro ect e'penditure 9@ro ect& inter alias& includes new pro ectC
e'pansionC acquisition of businessCcompanyC brandsCresearch J de!elopment:.

!verseas 1nvestment ;inance

1 Finance for Indian CompanyIs equity participation in the

o!erseas Ooint Fenture 9OF:C 0holly Awned 1ubsidiary 90A1:

2

8irect Finance 9Term J 0orking Capital: to the o!erseas OF C 0A1

Finance 9for equityCdebt component: for acquisition of o!erseas businesses C

companies including le!eraged buy%outs including structured financing options.

8irect Equity by E'im .ank in the o!erseas OFC 0A1 of an Indian Company.

$+port 1mport Bank o* 1ndia 2 Small : Medium $nterprises : Agricultural *inance

D.0')'+'/) /0 SME4 ') I)1'* *)1 !/-31"

In India the small and medium enterprises are not well defined. The internal group set up by the Reser!e .ank of India has recently recommended that the units with in!estment in plant and machinery in e'cess of 11I limit and upto Rs. 2< crores may be treated as medium enterprises. The definitions of Psmall/ and Pmedium/ si$ed enterprises differ from one country to another. 1"Es ha!e been defined against !arious criteria such as the number of workers employed& !olume of output

or sales& !alue of assets employed& and the use of energy. Argani$ation for Economic Cooperation and 8e!elopment 9AEC8: defines establishments with upto 23 employees as P!ery small/& between 7< and 33 employees as Psmall& from 2<< to =33 employees as medium and o!er N<< employees as large enterprises. Bowe!er& many establishments in some de!eloping countries with 2<< to =33 employees are regarded as relati!ely Plarge/ firms. "ultilateral In!estment *uarantee Agency 9"I*A: has recently de!eloped a guarantee programme& called the 1mall In!estment @rogramme 91I@: that is specifically designed for 1"Es. "I*A defines 1"Es& for co!erage under this programme& as firms with not more than D<< employees& !alue of assets not e'ceeding #1 G 2N million and annual sales not e'ceeding #1 G 2N million. The European #nion defines 1"Es that ha!e employees of less than 7N<& with a turno!er not e'ceeding Euro N< million. Thus the definition of 1"E !aries from country to country and from region to region. The importance of 1"E sector is well% recogni$ed world o!er owing to its significant contribution in achie!ing !arious socio%economic ob ecti!es& such as employment generation& contribution to national output and e'ports& fostering new entrepreneurship and to pro!ide depth to the industrial base of the economy. India has a !ibrant 1"E sector that plays an important role in sustaining economic growth& increasing trade& generating employment and creating new entrepreneurship in India.

I:5/-+*);. /0 +7. SME 4.;+/-"

7E million people and is in!ol!ed with the production of o!er ;N<< industrial items The 11I sector in India employs around with the product range !arying from !ery

simple items produced with traditional technology to high tech products. At present& the 11I sector accounts for o!er 3<Q of industrial units in the country& =<Q of !alue addition in the manufacturing output and appro'imately DNQ of India/s e'ports. 11I sector in India has been e'hibiting a striking e'port performance. .arring few years& e'ports ha!e grown double digit in the last 2< years. "a or sectors contributing to 11I e'ports include readymade garments 97;Q:& engineering goods 92=.NQ:& chemicals J pharmaceuticals& electronics J computers& and processed foods 922Q each:.

E9': B*)8 *)1 SME4" Indian 1"Es require business ad!isory ser!ices to enhance their international competiti!eness in a highly competiti!e globalising world. The 1"Es find the ser!ices of reputed national and international consultants as not cost effecti!e and often& not adequately focused. Recogni$ing this knowledge gap& E'im .ank of India has been endea!ouring to pro!ide a suite of ser!ices to its 1"E clients. These include pro!iding business leads& handholding during the process of winning an e'port contract and thus assisting the generation of e'port business on success fee basis&

countriesC sector information dissemination& capacity building in niche areas such as quality& safety& e'port marketing& etc. and financial ad!isory ser!ices such as loan syndication& etc.

In the past& E'im .ank has implemented a number of inno!ati!e programmes focusing primarily on 1"Es. The .ank& in the past& has operated an Agency (ine of Credit for IFC and an E'port "arketing @rogramme for the 0orld .ank& which are targeted towards 1"E sector. The .ank proacti!ely assists 1"E units in establishing their products in international markets. E'im .ank/s (ines of Credit help 1"Es to offer competiti!e credit term to the buyers and to e'plore newer geographical markets. Recently& the .ank has signed a "emorandum of Cooperation with the International Trade Centre 9ITC:& *ene!a& to implement the Enterprise "anagement 8e!elopment 1er!ices 9E"81: programme& for

supporting 1"Es in their globalisation efforts. This initiati!e is being launched by ITC for the first time in any country.

AGRI FINANCE

The globali$ation and post%0TA scenario offers considerable scope for e'ports of Indian agricultural products. E'im .ank has a dedicated Agri .usiness *roup to cater to the financing needs of e'port%oriented companies dealing in agricultural products.
Financial assistance is pro!ided by way of term loans& pre%shipmentCpost% shipment credit& o!erseas buyersI credit& bulk import finance& guarantees etc. Term loans with !arying maturities are pro!ided for setting up processing facilities& e'pansion& moderni$ation& purchase of equipment& import of equipmentCtechnology& financing o!erseas oint !entures and acquisitions etc. The .ank has strong linkages with other stakeholders in Agri sector such as "inistry of Food @rocessing Industries& *oI& HA.AR8& A@E8A& 1mall FarmersI Agri%.usiness Consortium 91FAC:& and Hational Borticultural .oard etc. Apart from financing& the .ank also pro!ides a range of ad!isory ser!ices to Agri e'porters. Term loans with !arying maturities are pro!ided for setting up processing facilities& e'pansion& moderni$ation& purchase of equipment& import of equipmentCtechnology& financing o!erseas oint !entures and acquisitions etc. The .ank has strong linkages with other stakeholders in Agri sector such as "inistry of Food @rocessing Industries& *o!ernment of India& HA.AR8& A@E8A& 1mall FarmersI Agri%.usiness Consortium 91FAC:& and

Hational Borticultural .oard etc. Apart from financing& the .ank also pro!ides a range of ad!isory ser!ices to Agri%e'porters. The .ank also publishes a number of Accasional @apers& 0orking @apers on e'port potential of !arious sub%sectors in agriculture and a bi%monthly publication in different languages on global scenario in agri%business and opportunities therein.

I)'+'*+'A.4 >6 E9': B*)8 0/- >/+7 S:*33 *)1 M.1',: E)+.-5-'4.4 & A(-' 0')*);."
1 E'im .ank has signed a "emorandum of Cooperation with DHAN

F/,)1*+'/)& "adurai 9a leading H*A co!ering D lakh families in = states: for ad!isory and financial support for e'port related acti!ities for their grass root enterprises
2 1et up units to produce !alue%added products from organic

tamarind grown in the area

3 1teps are on to set up an e'port oriented coco%peat pro ects 4 To market products made out of 5*3: 3.*A.4 and 7*)1:*1.

5*5.-4 in E,-/5. through our o!erseas offices.

1) To de!ise marketing strategy for marketing 3/;*3 7*)1';-*0+4 to

foreign tourists through N star hotels.

2) E'im .ank has signed "emorandum Af Cooperation with BASIX<

H61.-*>*1. .A1I6 promotes 1.A.3/5:.)+ for the -,-*3 5//- and B/:.)& mainly through M';-/-;-.1'+ and M';-/ F')*);.. Bighlights of "oC?%
*) oint consultancy studies& >) producti!ity enhancement& ;) market linkages& capacity building& 1) entrepreneurship de!elopment&

.) commerciali$ation of IndiaIs rural sector in o!erseas market

technical assistance to micro and small%enterprises in the farm and non% farm sectors in other de!eloping countries&

3) E'im .ank along with .A1I6 to organise skill upgradation workshop for

handloom wea!ers in M*7*>,>)*(*- M*)1*3 J for +,44*- 4'38 B.*A.-4 ') K/4('< A)17-* P-*1.47

4) .A1I6 in association with *o!t. of Ra asthan and UNDP is engaged in

discussions for de!eloping .95/-+ ;3,4+.-4 in Ra asthan including 1tone Car!ing and 8ari Cluster in (awan& 8ausa and @ottery Cluster in .asawa.
1) E'im .ank is engaged in helping the clusters in product de!elopment

and establishing .95/-+ :*-8.+ 3')8*(.4& organi$ing B/-847/54 *)1 +-*')')( 5-/(-*:4 for skill upgradation of rural artisans.
2) E'im .ank/s 8ubai 9 formerly .udapest : office helped in

.95/-+')( 4*)14+/). 43*>4 to H,)(*-6

5) E'im .ank has signed a "emorandum of Cooperation with U-*A, 9an

H*A in!ol!ed in .:53/6:.)+ (.).-*+'/) 5-/(-*:4 in the >*:>// 4.;+/- for +-'>*3 & 5//- 0*:'3'.4 ') !*6)*1< 5erala: to pro!ide larger !isibility to bamboo%based handicraft products. Bighlights of "oC?%
1) Facilitate promotion of #ra!uIs or its associatesI products in

o!erseas market.

Identification of suitable buyers C partners by E'im .ank for facilitating e'port business of #ra!u and its associates. 2) E'change of information on international markets for !arious products&
technology& trade& business and in!esting opportunities to facilitate increased co%operation for commercial e'ploitation in o!erseas markets.
3) Conducting oint studies and research in areas of mutual interest

6) E'im .ank has initiated discussion with 7*)13//: B.*A.-4 cooperati!e

societies in F,3'* (!.4+ B.)(*3) for marketing their products o!erseas

7) Hational Institute of Fashion 8esign& Bandloom J Bandicraft E'port

@romotion Council and 8irectorate of Bandloom& *o!t. of 0est .engal participated in the discussions at E'im/s office in 5olkata
8) Ane suggestion under discussion is to form a marketing company

with equity participation by the wea!ers co%op& 0est .engal *o!t. and E'im .ank which will take up marketing of the products
9) Feasibility report under preparation by Indian Institute of 1ocial

0elfare J .usiness "anagement& 5olkata

10)

E'im .ank is also associated with rural knowledge centre of M&S& SB*:')*+7*) R.4.*-;7 F/,)1*+'/) 0/- 5-/A'1')( +.;7)/3/(6 ')5,+4 +/ -,-*3 *-.*4&

Recent 8e!elopments ?

EXIMJ4 0/;,4 /) SME4 1pecial (ine of Credit from A8.? The .ank is negotiating a long term (ine of Credit of #1G 7N< mn. From the Asian 8e!elopment .ank& without Central *o!ernment guarantee& for e'tending loans to 1"Es . The .ank will ha!e an option to draw the funds in different currencies& as per the needs of its customers.

I))/A*+'A. P-/(-*::. 0/- SME4 The .ank has entered into a cooperation arrangement with International Trade Centre 9ITC:& *ene!a& for implementing a unique Enterprise "anagement 8e!elopment 1er!ices 9E"81: program& which is an IT based solution pro!ider to enable small enterprises to prepare business plans with international market in focus. This is a pioneering initiati!e for supporting 1"Es and for pro!iding term loans and e'port finance facilities to the identified units to help them in their globalisation efforts. The .ank has partnered ITC in implementing this pro ect. The .ank thus supports small enterprises through capacity building and assistance in formulation of !iable proposals. It is en!isaged that the learning from this programme would be transferred to other de!eloping countries& and thus assist in capacity creation and institution building in the global arena.
The .ank has partnered the Commonwealth 1ecretariat in the Commonwealth

> India 1mall .usiness Competiti!eness 8e!elopment @rogramme. The ob ecti!e of the programme is to undertake capacity de!elopment initiati!e that promotes economic de!elopment 9increased employment& in!estment& trade and economic acti!ity: in Commonwealth member states by pro!iding

competiti!e strategies and policies on 1"E de!elopment to practitioners and policy makers& and to build and de!elop institutional capacity.

A%;1AP %evelopment A-ard The Association of 8e!elopment Financing Institutions in Asia and the @acific 9A8FIA@: 8e!elopment Award recognises and honours A8FIA@ member institutions& which ha!e assisted pro ects that ha!e created a de!elopment impact in their respecti!e countries. Awardsare gi!en to member institutions& which ha!e implemented or enhanced outstanding and inno!ati!e de!elopment pro ects during the year. The .ank has been conferred the 7<<4 )1"E 8e!elopment Award+. The Award is in recognition of the .ank/s )Enterprises "anagement 8e!elopment 1er!ices 9E"81:+ programme& an IT based solution pro!ider to enable small enterprises to prepare business plans with international market in focus

D.>+ -.4+-,;+,-')( 4;7.:. 0/- 4:*33 *)1 :.1',: .)+.-5-'4.4 P,>3';*+'/)4

1 E'port @erformance of 1mall and "edium Enterprises in India in

-.4.*-;7 >-'.0&

Accasional @aper" Institutional 1upport to 1"Es A 1tudy of Trade and In!estment @otential
1 Accasional @aper" Institutional 1upport 1ystems for 1"Es in India

and International E'periences

FI(" FIHAHCE

The bank has till date%sanctioned loans more than R4 KK&=# crores for film production .the first three films financed by E'im bank has been commercially successful across India and o!erseas market.

FILMS FINANCED B EXIM BANK& 5 Fanaa Aur 1 Boneymoon Tra!els6 .unty .abli @!t. (td. 7 1alaam 2 5abul E'press Hamaste 3 8hoom %7 4 8on % The Chase8 Feer Raara
.egins Again

EXPORT CREDITS

E'im bank offers the following E'port Credit facilities& which can be a!ailed of by Indian companies& commercial banks and o!erseas entities.

FOR COMMERCIAL BANKS"

E'im bank offers R.1'4;/,)+')( 0*;'3'+6 to commercial banks& enabling them to rediscount e'port bills of their 11I customers& with usance not e'ceeding 3< days.

0e also offer R.0')*);. /0 S,553'.-4 C-.1'+& enabling commercial banks to offer credit to Indian e'porters of eligible goods& who in turn e'tend them credit o!er 24< days to importers o!erseas.

OTHER FACILITIES FOR INDIAN COMPANIES"

Indian companies e'ecuting contracts within India& but which are financed by multilateral finance agencies& can a!ail of credit under our finance for deemed e'ports facility& aimed at helping them meet cash flow deficits.

FOR OVERSEAS ENTITIES B,6.-J4 ;-.1'+" A!erseas buyers can a!ail of B,6.-4 C-.1'+ from E'im bank& for import of eligible goods from India on deferred payment terms.

#ine !* Credit

I)+-/1,;+'/)
E'im .ank e'tends (ines of Credit 9(ACs: to o!erseas financial institutions& regional de!elopment banks& so!ereign go!ernments and other entities o!erseas& to enable buyers in those countries& to import goods and ser!ices from India on

deferred credit terms. The Indian e'porters can obtain payment of eligible !alue from E'im .ank& without recourse to them& against negotiation of shipping documents. (AC is a financing mechanism that pro!ides a safe mode of non%recourse financing option to Indian e'porters& especially to 1"Es& and ser!es as an effecti!e market entry tool. E'im .ank e'tends (ACs& on its own& as well as& at the behest of *o!ernment of India. H/B 1/.4 '+ B/-8L
1. E'im .ank signs (AC Agreement with o!erseas .orrower

Institution 9.orrower: and announces the a!ailability of (AC for utili$ation& when the Agreement becomes effecti!e.
2. E'porter checks with E'im .ank& a!ailable amount under the (AC and quantum

of ser!ice fee payable to E'im .ank& if any& and negotiates contract with Importer.
3. Importer approaches the .orrower for appro!al of the contract.

4. .orrower appraises the proposal. If satisfied& appro!es the contract and

refers to E'im .ank for concurrence for inclusion of contract for being financed under the (AC.
5. E'im .ank accords appro!al to the contract& if in conformity with the terms of

(AC. E'im .ank con!eys contract appro!al to the e'porter and the .orrower.
6. The Importer arranges remittance of ad!ance payment to the E'porter and also

opening of a (etter of Credit& which states that the contract is co!ered under E'im

.ankIs (AC to the .orrower and reimbursement will be by E'im .ank for the Eligible Falue of Credit& upon compliance with stipulated conditions therein.
7. E'porter e'ecutes the contractCships the goodsCpro!ides ser!ices.

8. E'im .ankCcommercial bank in India& designated as the Hegotiating

.ank negotiates shipping documents and pays the e'porter.

9. E'im .ank reimburses the Hegotiating .ank& on receipt of !alid claim and

ser!ice fee& as applicable& by debit to the (AC account of the .orrower.

10. .orrower repays E'im .ank on due dates.

P-/;.1,-*3 03/B ;7*-+

B.).0'+4 +/ +7. I)1'*) E95/-+.-"

#nder E'im .ankIs (ACs& the Indian e'porters can obtain payment of eligible !alue from E'im .ank& without recourse to them& against negotiation of shipping documents. The Indian e'porter does not carry any credit risk either on the importer or the importerIs country& whilst the o!erseas importer en oys deferred credit facility. Thus& (AC is a safe mode of non%recourse financing option to the Indian e'porter and ser!es as a

market entry tool for IndiaIs e'ports. The Indian e'porter can also increase his e'port !olumes by offering deferred credit& where required.

B.).0'+4 +/ OA.-4.*4 I:5/-+.- /0 (//14 *)1 4.-A';.4"

E'im .ank has been using the (AC mechanism for promoting IndiaIs e'ports to the traditional as well as new markets in de!eloping countries& which need deferred credit for buying Indian machinery& goods and ser!ices. As the (AC is e'tended by E'im .ank on internationally competiti!e terms& the o!erseas importer of Indian goods is allowed access to the credit facility at competiti!e interest rates. The o!erseas importer and the Indian e'porter do not ha!e to negotiate credit terms separately as the credit arrangement between E'im .ank and the o!erseas borrower financial institution is already in place.

C-.1'+ 5.-'/1 *33/B.1 ,)1.- +7. LOC E3'('>3. G//14" Capital goods& plant and machinery& industrial manufactures& consumer durables and any other items eligible for being e'ported under the IE'im @olicyI of the *o!ernment of India. I)+.-.4+ -*+. +7. /A.-4.*4 ':5/-+.- /0 I)1'*) (//14 7*4 +/ 5*6
The o!erseas importer of Indian goods has to approach the o!erseas borrower financial institutionCrecipient of E'im .ankIs (AC& for appro!al of his proposal for import of Indian goods on deferred credit terms. The interest rate that the importer will need to pay to the recipient of E'im .ankIs (AC& will depend on !arious factors such as the cost of fund& the currency of credit& tenor of credit& security offered by the importer& the risk perception of the importer and the interest rate structure pre!alent in the country. It may howe!er be mentioned that E'im .ankIs

interest rates on (ACs being competiti!e& the importer would normally ha!e to pay interest rate lower than what he would otherwise pay to his .ank on similar credits.

C7*-(.4 5*6*>3. >6 +7. I)1'*) .95/-+.- +/ E9': B*)8 In respect of certain (ACs& the Indian e'porter has to pay a ser!ice fee to E'im .ank. The e'porter should check in ad!ance with E'im .ank the quantumCpercentage of ser!ice fee payable. In respect of (ACs e'tended by E'im .ank& at the behest of *o!ernment of India& no ser!ice fee is normally payable by the e'porter to E'im .ank.

M')':,: A*3,. /0 ;/)+-*;+ 0/- >.')( .3'('>3. 0/- ;/A.-*(. ,)1.- +7. LOC

"ost of the (ACs stipulate a minimum contract !alue as #1G N<<<<. Bowe!er& under certain (ACs& the minimum !alue of contract could be different. E'porters would be well ad!ised to check the particulars of the indi!idual (AC with E'im .ank.

*enerally& e'port of capital goods and plant and machinery is allowed on credit terms of upto N years& whereas the e'port of industrial manufactures& consumer durables& raw materials and commodities is allowed on credit terms of upto 7 years. Bowe!er& the credit period allowed under each (AC could be different. There are certain short%term (ACs which pro!ide for credit period of 2 year& and there are certain (ACs which permit credit period beyond N years. E'porters are ad!ised to check the details with E'im .ank& in ad!ance. In respect of (ACs

e'tended by E'im .ank& at the behest of *o!ernment of India& credit period ranges from 4 years to 7< years depending on the caegories of countries& based on their le!els of incomes and e'ternal debt.

T7. 4+*(. *+ B7';7 +7. I)1'*) .95/-+.- 47/,31 ;/)+*;+ E9': B*)8 The Indian e'porter should contact E'im .ank before finali$ing the price negotiation with his prospecti!e importer& if the transaction is intended to be co!ered under E'im .ankIs (AC. The e'porter should ascertain details such as the ser!ice fee payable to E'im .ank& the credit period permissible under the (AC& the payment procedure in!ol!ed and the contact personCdepartment in the o!erseas borrower institutionCrecipient of (AC. In respect of certain (ACs especially those e'tended by E'im .ank& at the behest of *o!ernment of India& sectorsCpro ects could be pre%identified.

ECGC ;/A.As the (AC is a non%recourse financing option to the Indian e'porter& he does not ha!e to obtain any EC*C co!er.

Recent 8e!elopments And Hews Bighlights ?

$+im bank signs agreement -ith A*rican counterpart
Hew 8elhi& "arch 7<&7<<4? E'im .ank of India has signed an agreement with the African E'port%Import .ank or Afre'imbank for a (ine of Credit to the tune of GD< million to be pro!ided for financing India/s e'ports to Africa. The agreement was signed at the =th CII%E'im .ank concla!e on India%Africa @ro ect @artnership 7<<4 in Hew 8elhi on. The agreement was signed by "r. T C Fenkat 1ubramanian& Chairman and "anaging 8irector of E'im .ank and Oean%(ouis Ekra& @resident of Afre'imbank. This agreement will facilitate and boost India/s e'ports to member states of Afre'imbank. The (ine of Credit affords a risk free& non%recourse e'port financing option to Indian e'porters. E'im .ank is a non%regional shareholder of Afre'imbank which represents D4 member%states across Africa.

$+im Bank !* 1ndia And #ao Pdr 1nk Credit Agreement

E'port%Import .ank of India 9E'im .ank: and the *o!ernment of (ao @eopleIs 8emocratic Republic ha!e signed a (ine of Credit 9(AC: Agreement for #1G DD mn during the 1tate Fisit of the @resident of (ao @8R to India. The (AC Agreement was signed in Hew 8elhi& on 0ednesday& August 7;& 7<<4& by "r. 1.R. Rao& E'ecuti!e 8irector& on behalf of E'im .ank of India& and B.E. "r. 1omdy 8ouangdy& "inister of Finance& on behalf of (ao @8R& in the presence of BonIble @rime "inister of India& 8r. "anmohan 1ingh& and the @resident of (ao @8R& B.E. "r. Choummaly 1ayasone. This Facility& e'tended at the behest of *o!ernment of India& is the first e!er (ine of Credit by E'im .ank to (ao @8R. The (AC will be utilised to finance the @aksong 1C1%Oiang'ai 22N kF double circuit Transmission (ine pro ect& Ham 1ong ;.N "0 Bydropower pro ect and equipment for Rural Electrification @hase 7 pro ect in (ao @8R. #nder the (AC& E'im .ank will reimburse 2<<Q of contract !alue the Indian e'porter& upfront upon the shipment of goods. .esides promoting IndiaIs e'ports& E'im .ankIs (ACs enable demonstration of Indian e'pertise and pro ect e'ecution capabilities in emerging markets.

0ith the signing of this (AC Agreement& E'im .ank has now in place 2<2 (ines of Credit& co!ering o!er 3< countries in Africa& Asia& (atin America& Europe and the CI1& with credit commitments amounting to #1G D.D7 bn& a!ailable for utili$ation for financing e'ports from India. E'im .ankIs (ACs afford a risk%free& non%recourse e'port financing option to Indian e'porters.


@rofile etc.

documents& etc.