INTERNATIONAL BUSINESS

EXIM BANK
Presented by
Anuja Kingar (0911061)
Monica Khothari (0911064)
Poornima Nair (0911065)
Sonal Agarwal (0911067)
EXPORT IMPORT BANK OF INDIA
 Is the premier export finance institution of the country, set up in 1982 under the
Export-Import Bank of India Act 1981. Set up by an act of the parliament

 Wholly owned by the government of India.

 Commenced operations in the year 1982.

 Government of India launched the institution with a mandate, not just to

enhance exports from India, but to integrate the country foreign trade and
investment with the overall economic growth

 Exim Bank of India has been both a catalyst and a key player in the promotion of
cross border trade and investment.
 Initiatives of Exim
• Over the period, evolved into an institution that plays a major role
in partnering Indian industries, particularly the Small and Medium
Enterprises, in their globalization efforts, through a wide range of
products and services offered at all stages of the business cycle,
starting from import of technology and export product development
to export production, export marketing, pre-shipment and post-
shipment and overseas investment.
• The bank offers wide-ranging services for enhancing the prospect of
Indian project exports.
• The bank offers support to small and medium enterprises in their
export marketing efforts consisting of financing the soft expenditure
linking to completion of tactical and systematic export market
development plans.
 Objectives
• Over the period, evolved into an institution that plays a major role in
partnering Indian industries, particularly the Small and Medium
Enterprises, in their globalization efforts, through a wide range of products
and services offered at all stages of the business cycle, starting from import
of technology and export product development to export production, export
marketing, pre-shipment and post-shipment and overseas investment.

• The bank offers wide-ranging services for enhancing the prospect of Indian
project exports.

• The bank offers support to small and medium enterprises in their export
marketing efforts consisting of financing the soft expenditure linking to
completion of tactical and systematic export market development plans.
 Roles of EXIM Bank

• Export-Import Bank of India plays the role of source of finance, promoter,

coordinator and consultation to India's Foreign Trade.

• The bank is the coordinator of the Working Group Mechanism for the clearance
of projects, service exports and deferred payment exports. This group comprises
of Exim Bank and Government of India representatives from the Ministries of
Finance, Commerce and external Affairs, Export Credit Guarantee Corporation
of India Ltd, commercial banks that are certified foreign exchange dealers and
the Reserve Bank of India.

• This working group gives clearance to contracts sponsored by Exim Bank or

commercial banks and operates as a single window mechanism for clearance of
export proposal terms.
 Catalytic Role of EXIM
• First institution to finance & promote computer software exports
(1986)
• Set up global trade finance ltd. As a joint venture with IFC in 2001
for providing export factoring facility as an alternative trade
financing instrument.
• Introduced programmes for financing R&D, export product
development, qualify certification, export oriented film financing
etc.
• Launched the Asian EXIM Banks Forum in 1996 and brought
together 8 EXIM Banks operating in Asia to promote intra- regional
trade and reduce transaction cost.
Organisation Chart

Government of India

Chairman and managing director 1 director nominated by RBI 1 director : nominated by ECGC
5 directors : Government of India 1 director : nominated by IDBI Type Title Here
4 directors : professionals/ experts
 Financing Programmes
THERE ARE 3 TYPES OF FINACING PROGRAMMES ADOPTED BY
EXIM

• EXPORT CREDIT

• IMPORT CREDIT

• LOANS FOR EXPORTING UNITS

FUNCTIONS OF
EXIM BANK
 Finance for Export Oriented Units
• Term Finance:
a) For Exporting Companies: Project finance, equipment finance, import of
technology & related services, domestic acquisitions of businesses, export
product development/ R & D, General Corporate Finance

b) For Non-Exporting Companies: Import of Equipment

• Working Capital Finance:

a) For Exporting Companies:

Funded: Working Capital Term Loans [< 2 years], Long Term Working
Capital [up to 5 years], Export Bills Discounting, Export Packing Credit, Cash
Flow financing.
Non Funded: Letter of Credit Limits, Guarantee Limits

b) For Non-Exporting Companies: Bulk Import of Raw Material.

• Export Finance: Pre-shipment Credit, Post Shipment Credit, Buyers'
Credit, Suppliers' Credit [including deferred payment credit], Bills
Discounting, Export Receivables Financing, Warehousing Finance, Export
Lines of Credit (Non-recourse finance)
• Equity Participation:
For Exporting Companies: To part finance project expenditure
(Project, inter alia, includes new project/expansion/ acquisition of
business/company/brands/r & d)
 Export Credits
• Can be availed of by Indian companies, commercial banks and overseas
entities. 
• For Indian Companies executing contracts overseas :
• Pre-shipment credit
Exim Bank's Pre-shipment Credit facility, in Indian Rupees and foreign
currency, provides access to finance at the manufacturing stage - enabling
exporters to purchase raw materials and other inputs.
•  Supplier's Credit
This facility enables Indian exporters to extend term credit to importers
(overseas) of eligible goods at the post-shipment stage. 
• For Project Exporters
Indian project exporters incur Rupee expenditure while executing overseas
project export contracts i.e. costs of mobilisation/acquisition of materials,
personnel and equipment etc. Exim Bank's facility helps them meet these
expenses. 
• For Exporters of Consultancy and Technological Services
Exim Bank offers a special credit facility to Indian exporters of
consultancy and technology services, so that they can, in turn, extend
term credit to overseas importers. 
• Guarantee Facilities
Indian companies can avail of these to furnish requisite guarantees to
facilitate execution of export contracts and import transactions. 
 Small and Medium Enterprises Finance
• Contributes in achieving various socio-economic objectives, such as
employment generation, contribution to national output and exports,
fostering new entrepreneurship and to provide depth to the industrial base
of the economy.
• providing business leads, handholding during the process of winning an
export contract and thus assisting the generation of export business on
success fee basis, countries/ sector information dissemination, capacity
building in niche areas such as quality, safety, export marketing, etc. and
financial advisory services such as loan syndication, etc.
 Agri Finance
• Exim Bank has a dedicated Agri Business Group to cater to the financing
needs of export oriented companies dealing in agricultural products. 
• Financial assistance is provided by way of term loans, pre-shipment/post-
shipment credit, overseas buyers' credit, bulk import finance, guarantees
etc.
• The Bank has strong linkages with other stakeholders in agri sector such as
Ministry of Food Processing Industries, GoI, NABARD, APEDA, Small
Farmers' Agri-Business Consortium (SFAC), National Horticultural Board
etc. Apart from financing, the Bank also provides a range of advisory
services to agri exporters. 
 Overseas Investment Finance
• Finance for Indian Company's equity participation in the overseas Joint
Venture (JV)/ Wholly Owned Subsidiary (WOS) 
• Direct Finance (Term & Working Capital) to the overseas JV / WOS 
• Finance (for equity/debt component) for acquisition of overseas
businesses / companies including leveraged buy-outs including
structured financing options 
• Direct Equity by Exim Bank in the overseas JV/ WOS of an Indian
Company
 Lines of Credit
• Exim Bank extends Lines of Credit (LOCs) to overseas financial institutions,
regional development banks, sovereign governments and other entities
overseas, to enable buyers in those countries, to import goods and services
from India on deferred credit terms.
• The Indian exporters can obtain payment of eligible value from Exim Bank,
without recourse to them, against negotiation of shipping documents.
• LOC is a financing mechanism that provides a safe mode of non-recourse
financing option to Indian exporters, especially to SMEs, and serves as an
effective market entry tool.
 LOC’s Procedural
Flowchart

1. Exim Bank signs agreement with Borrower and announces when effective. 

2. Exporter checks procedures and Service fee with Exim Bank and negotiates

contract with Importer.
3. Importer consults borrower and signs contract with exporter.
4. Borrower approves contract.
5. Exim Bank approves contract and advises borrower and
also exporter and commercial bank.
6. Exporter ships goods.
7. Commercial bank negotiates shipping documents and pays exporter.
8. Exim Bank reimburses Commercial bank on receipt of claim by debit
to borrower.
9. Borrower repays Exim Bank on due date.
 Export Services
• Advisory Services
Multilateral Agencies Funded Projects Overseas (MAFPO)
Promoting Indian Consultancy
Exim Bank as a Consultant
• Knowledge Building
EXIMUS Centres for Learning – Ahmedabad, Bangalore and Pune
Research Studies
Sector Studies
Bilateral Trade and Investment Studies
Macro Economic Environment
• Information
Exporters/Importers, Industry/Market Reports, Trade Regulations & Laws,
Country Reports, International Quality Standards, Partner Identification,
Product Display
• Promotional Programmes
Project Preparatory Services Overseas Programme
• Export Marketing Services
Provides assistance to Indian companies, to enable them establish their
products in overseas markets through its Export Marketing Services,
starting from identification of prospective business partners to facilitating
placement of final orders. 
Leverages the Bank’s high international standing, in-depth knowledge and
understanding of the international markets and well established
institutional linkages, coupled with its physical presence, to support Indian
companies in their overseas marketing efforts on a success fee basis.
Services offered across sectors: Marine Products, Textiles, Food Processing,
Office Stationery, Ayurveda Cosemetics/Medicines.
 Rural Initiative
• Exim Bank believes that there is a strong linkage between export
development and poverty reduction. For a country like India, with a large
(70%) rural population, creation of export capability in rural grassroot
enterprise is a must.
• Rural enterprises suffer from various handicaps including image, quality,
capacity, packaging, delivery, etc. NGOs and SHGs are the front for rural
enterprises.
 Film Finance
• Cashflow financing for film production
• Cashflow financing for film distribution/exhibition in overseas markets
• Term loans for fixed assets finance
• Term financing for export market development
• The Indian film industry is an integral part of the Indian socio-economic
psyche and the most popular source of entertainment in the country. 
• The Indian film industry comprises of a cluster of regional film industries,
like Hindi, Telugu, Tamil, Kannada, Malayalam, Bengali etc. This makes it
one of the most complex and fragmented national film industries in the
world.