Export-Import Bank of India (Exim Bank) today reported 10% rise in net profit at Rs 742 crore for the year ended March 2013 due to growth in project loans and diversification in exports in South Asia and Africa.
Total business of the bank was up by 21% to Rs 137,774 crore. Loan book grew 20% to Rs 65,563 crore.
The bank’s net interest margin dropped by 3 basis points to 2.14% in the year. “Our cost to income ratio is at just 7% compared 40% range of other commercial banks and we pass that benefit to our borrowers through lower margins” said T.C.A. Ranganathan, chairman and managing director, Exim Bank.
The bank transferred Rs 263 crore as a return on capital to union government up 28% from the previous year.
Net non performing assets of the bank was at 0.47%. Exim Bank raised Rs 38,569 crore from the market with Rs 21,557 crore from overseas borrowings and balance from rupee borrowings. The bank declined to give borrowing outlook for the year.
During the year the bank extended lines of credit (LoC) worth $ 833.59 million. Till date 167 LoCs have been extended to 75 countries in Africa, Latin America, Europe and Asia, the bank said.
The bank sanctioned overseas investment assistance 49 corporates for Rs 4,228 crore as a part of overseas investment financing 20 countries. Exim Bank has so far provided finance to 436 ventures set up by 352 companies in 71 countries. Total assistance for overseas investment is Rs 29,280 crore.
The bank is also pleading with government to revise the definition of micro small and medium enterprises (MSMEs). According to Ranganathan, the current definition of Rs 10 crore investments in plants and machinery is not comparable in global environment where this definition is much higher and Indian MSMEs can’t compete with them.
