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Study of Export Import Bank of India
PROJECT REPORT ON:
STUDY OF EXPORT IMPORT BANK OF INDIA

SUBMITTED BY:
TELI ANJALI RAMCHANDRA
T. Y .BANKING AND INSURANCE (SEMESTER V)
SUBMITTED TO:
PROJECT GUIDE:
PROF. VENKATESH SUBRAMANIAM
Academic Year: 2016-17
Thakur college of Science and Commerce Page 1

DECLARATION
I, TELI ANJALI RAMCHANDRA from THAKUR COLLEGE OF

SCIENCE AND COMMERCE, Student of T.Y.B.Com [BANKING
AND INSURANCE (SEM V)], hereby submit my project report on
STUDY OF EXPORT IMPORT BANK OF INDIA.
I also declare that this project which is partial fulfillment of the
requirement for the degree of T.Y.B.Com (BANKING AND
INSURANCE) offered by UNIVERSITY OF MUMBAI is the result
of my own efforts with the help of experts.
TELI ANJALI RAMCHANDRA
Date:
Place:

CERTIFICATE
This is to certify that the project entitled is successfully done by

TELI ANJALI RAMCHANDRA during the Third year FIFTH
SEMESTER of B.Com (Banking & Insurance) under
UNIVERSITY OF MUMBAI through THAKUR COLLEGE OF
SCIENCE & COMMERCE, Kandivali (E), Mumbai-400101.
Coordinator Project Guide Principal
Date:-
Place:-
Internal examiner External examiner

ACKNOWLEDGEMENT
It gives me immense pleasure in presenting the project on STUDY OF
EXPORT IMPORT BANK OF INDIA. Firstly, I take the opportunity in
thanking our very dear principal Dr. C.T. CHAKRABORTY then I would like
to thank the almighty and my parents without whose continuous blessings, I
would not have been able to complete this project.
I would like to thank my Project Guide PROF. VENKATESH

SUBRAMANIAM and our Co-ordinator Prof. Nirav.R.Goda for his great,
valuable opinions, advice and supporting me, giving me encouragement and for
providing me with the material and knowledge to make this project a success. I
convey my deep appreciation to him for sparing his valuable time and efforts, so
as to make me capable of presenting this project.
I am thankful to our college for all the possible assistance and support, specially
our library by making available the required books and internet room which
have proved useful to me in successful completing my project.
I hope that I have succeeded in presenting this project to the best of my abilities

TABLE OF CONTENT
Sr No. Particulars Pg No.
CHAPTER 1 INTRODUCTION 6-11
CHAPTER 2 BANKS MAJOR PROGRAMS 12-16

SMALL MEDIUM ENTERPRISE &
CHAPTER 3 AGRICULTURAL FINANCE 17-22
CHAPTER 4 FLIM FINANCE 23-24
CHAPTER 5 LINE OF CREDIT 25-29
CHAPTER 6 BANKS FINANCING ACTIVITIES 30-35

JOINT VENTURES & PROMOTIONAL
CHAPTER 7 ACTIVITIES 36-37
CHAPTER 8 RUPEE RESOURCES OF EXIM BANK 38-39

LETTER OF CREDIT INSURANCE TO
CHAPTER 9 OTHER BANKS 40-43
RECENT DEVELOPMENT AND NEW
CHAPTER 10 HIGHLIGHTS 44-45
CHAPTER 11 CONCLUSION 46-47
CHAPTER 12 LAST WORDS 48-49
CHAPTER 13 REFERENCES 50-51

CHAPTER 1:
INTRODUCTION TO PROJECT

ORIGIN AND HISTORY

The Export-Import Bank Act, 1981:
An act to establish a corporation to be known as the Export-Import Bank of India for

providing financial assistance to exporters and importers, and for functioning as the
principal financial institution for co-ordinating the working of financial institutions
engaged in financing the export and import of goods and services with a view to
promoting the countrys international trade and for matters connected therewith and
incidental to.
History:
This Act extends to the whole of India. With effect from the date i.e. September 1981,
as the Central Government by notification, appointed, a corporation Known as the
Export Import Bank of India was established for the purposes of this Act.
The Export Import Bank of India, commonly known as the EXIM Bank, commenced
operations in March 1982. It was set up so as to take over the operations relating to
export finance which the IDBI (Industrial Development Bank of India) had been
handling since the year 1970. Exim Bank acts as the apex financial institution
relating to financing for foreign trade. It provides financial assistance by way of direct
loans and advances for the purpose of export or import, rediscounting of usance
export bills for banks and finance for international trade activities.
MISSION
Exim Banks mission is to facilitate globalization of Indian Business.
Exim Banks mission statement: To develop commercially viable relationships with

externally oriented companies by supporting their internationalization efforts, through
a diverse range of products and services.
Objective
The objective of the bank is-
for providing financial assistance to exporters and importers, and for 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 countrys international trade
shall act on business principles with due regard to public interest as Stated In
the Export-Import Bank Act, 1981.

OBJECTIVES
To translate national foreign trade policies into concrete action points.
To provide alternate financing solutions to the Indian exporter, aiding him in his
efforts to be internationally competitive.
To develop mutually beneficial relationships with the international financial

community.
To initiate and participate in debates on issues central to Indias international trade.
To forge close working relationships with other export development and financing
agencies, multilateral funding agencies and national trade and investment promotion
agencies.
To anticipate and absorb new developments in banking, export financing and

information technology.
To be responsive to export problems of Indian exporters and pursue policy

resolutions.

The Organization: Objective, Vision & Functions
The Exim Bank aims to promote India's international trade. The Logo has a two-way
significance. The import arrow is thinner than the export arrow. It also reflects the
aim of value addition to exports.
The Organization:
Exim Bank is wholly owned by the Government of India. The authorized capital of the
Bank is Rs. 2000 Crores, of which and Rs. 1000 Crores respectively, has been fully
subscribed by the Central Government. The Bank raises additional resources
through borrowing from the Government of India, from the RBI and from the market
through the issue of bonds and debentures. It borrows foreign currency form other
countries as well. Exim bank is managed by a Board of Directors, which has
representatives from the Government, Reserve Bank of India, Export Credit
Guarantee Corporation (ECGC) of India, a financial institution, public sector banks,
and the business community.
THE PEOPLE
Exim bank is a virtual melting pot of thriving minds from a variety of disciplines. The
bank has a total staff of 214 hailing from backgrounds as diverse as banking,
engineering, business management, information technology, accountancy,
economics and liberal arts. What they all have in common, however, is an underlying
passion for professional excellence. The creative synergy produced by a brain trust
composed of individuals with vastly different styles of thinking has helped the Bank
to constantly innovate, and come up with the original solutions solutions beyond
banking.

CORPORATE PHILOSOPHY
Exim banks corporate philosophy is built on two pillars:
People orientation and customer focus.
The Banks believes that its people are its key resource. Therefore, the Banks seeks
to develop its human resource by motivating them through challenging assignments,
upgrading their skills through training programmes, and recognizing professional
excellence.
We 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
citizen, the Bank maintains an equal ratio of men and women (1:1) .the Banks high
level of office automation and a lean and multi-skilled staff enables optimum
efficiency and profitability.
Customer-responsiveness is germane to the Banks philosophy. The Bank constantly

seeks to innovate and improve its products, processes and delivery mechanisms,
and thereby minimize response time and maximize customer equity. Our interactive
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 NETWORKING
Exim bank is quite unique in its global and national network of institutional and
professional linkages .Our five overseas offices-at Dubai, Johannesburg, London,
Singapore and Washington D.C.-have forged strategic institutional linkages for the
bank with:
Multilateral agencies such as World Bank, Asian development Bank;
Export credit agencies;
Trade and investment promotion agencies abroad; and
Trade and industry association in India.
The banks extensive global network, supported by the Indian missions abroad
makes it uniquely capable of offering advisory services to Indian companies looking
for marketing opportunities, buyer information, technology suppliers and partners for
overseas and domestic joint ventures. Further, our overseas office enables us to
garner economic and commercial intelligence on countries, companies and projects,
assess credit risks, review competitive export practices and provide alerts on new
export opportunities.

Evolving Vision
Functions:
1) Financing of exports and imports of goods and services, not only of India but also
of third world countries.
2) Financing of exports and imports of machinery and equipment on lease basis.
3) Financing of joint ventures in foreign countries.
4) Providing loans to Indian parties to enable them to contribute to the share capital
of joint ventures in foreign countries.
5) Undertake limited merchant banking functions such as underwriting of stocks,

shares, bonds or debentures of companies engaged in export or import; and
6) Provide technical administrative and financial assistance to parties in connection

with export and import.

CHAPTER 2
BANKS
MAJOR
PROGRAMS

BANKS MAJOR PROGRAMS
EXPORT CREDIT
Exim bank offers the following export credit facilities, which can be availed of by
Indian companies, commercial banks and international entities.
FOR INDIAN COMPANIES EXECUTING CONTACTS OVERSEAS
PRESHIPMENT CREDIT.
Exim banks pre-shipment credit facility, in Indian rupees and foreign currencies,
provides access to finance at a manufacturing stage, enabling exporters to purchase
raw materials and other inputs.
SUPPLIERS CREDIT
This facility enables Indian exporters to extend term credit to importers (overseas) of
the eligible goods at the post shipment stage.
FOR PROJECTS EXPORTERS.
Indian project exporters incur Rupee expenditure while executing overseas project
export contracts i.e. costs of mobilization/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 and export contracts and import transactions.
FORFEITING.
Forfeiting is a financing mechanism that enables a company to convert credit sale to

cash sale, on without recourse basis. Exim bank acts as facilitator for the Indian
exporter, enabling him to access the services of an overseas forfeiting agency.

FINANCE FOR EXPORT ORIENTED UNITS.
TERM FINANCE FOR EXPORTING COMPANIES
Project Finance
Equipment Finance
Import of Technology & Related Services
Domestic Acquisitions of businesses/companies/brands
Export Product Development/ Research & Development
General corporate finance.
WORKING CAPITAL FINANCE FOR EXPORTING COMPANIES.
Funded
Working Capital Term Loans [< 2 years]
Long Term Working Capital [up to 5 years]
Export Bills Discounting o Export Packing Credit
Cash Flow financing.
Non-funded
Letter of credit limits
Guarantee limits
Working Capital Finance for Non- Exporting Companies.
Bulk Import of Raw Material.
Term Finance For Non- Exporting Companies.
Import of Equipment
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 In Indian Exporting Companies. To part finance project

expenditure (Project, inter alias, includes new project/ expansion/ acquisition of
business/company/ brands/research & development)

Overseas Investment Finance
Exim Bank encourages Indian companies to invest abroad for, inter alia, setting up
manufacturing units and for acquiring overseas companies to get access to the
foreign market, technology, raw materal, brand, IPR etc. For financing such overseas
investments, Exim Bank provides:
a) Term loans to Indian companies upto 80% of their equity investment in overseas
JV/ WOS.
b) Term loans to Indian companies towards upto 80% of loan extended by them to
the overseas JV/ WOS.
c) Term loans to overseas JV/ WOS towards part financing
(i) capital expenditure towards acquisition of assets,
(ii) working capital,
(iii) equity investment in another company,
(iv) acquisition of brands/ patents/ rights/ other IPR,
(v) acquisition of another company,
(vi) any other activity that would otherwise be eligible for finance from Exim
Bank had it been an Indian entity.
d) Guarantee facility to the overseas JV/ WOS for raising term loan/ working capital.

Exim Bank has sanctioned a Rupee Term Loan to Harsha Engineers

Limited (HEL), Ahmedabad towards part financing the acquisition of 100%
equity stake of Johnson Metall SRL (JM SRL), Romania.
JM SRL, which manufactures brass bearing cages, was a strong

competitor of HEL in Europe having a highly automated plant.
With this acquisition, HEL will be able to expand its overseas customer
base.
Exim Bank sanctioned a FC loan to TVS Asianics Supply Chain Solutions

Pte Ltd (TVS Asianics), Singapore, WOS of TVS Logistics Services India,
(TVSLSL) to acquire 55% stake in Australia based Transtar International
Freight.
This will help TVSLSL gain access to new geographical territories, such as,
Australia, New Zealand and China.
Transtar Group is a specialist freight and logistics service provider in the

Asia-Pacific corridor, and is located at 10 of the top 12 container ports of the
world with annual revenue of US$ 165 Million.
CHAPTER 3
Export Import Bank of India - Small & Medium Enterprises &

Agricultural finance

Export Import Bank of India - Small & Medium Enterprises &

Agricultural finance
Definition of SMEs in India and World:
In India the small and medium enterprises are not well defined. The internal group
set up by the Reserve Bank of India has recently recommended that the units with
investment in plant and machinery in excess of SSI limit and upto Rs. 10 crores may
be treated as medium enterprises. The definitions of small and medium sized
enterprises differ from one country to another. SMEs have been defined against
various criteria such as the number of workers employed, volume of output or sales,
value of assets employed, and the use of energy. Organization for Economic
Cooperation and Development (OECD) defines establishments with upto 19
employees as very small, between 20 and 99 employees as small, from 100 to 499
employees as medium and over 500 employees as large enterprises. However,
many establishments in some developing countries with 100 to 499 employees are
regarded as relatively large firms. Multilateral Investment Guarantee Agency (MIGA)
has recently developed a guarantee programme, called the Small Investment
Programme (SIP) that is specifically designed for SMEs. MIGA defines SMEs, for
coverage under this programme, as firms with not more than 300 employees, value
of assets not exceeding US $ 15 million and annual sales not exceeding US $ 15
million. The European Union defines SMEs that have employees of less than 250,
with a turnover not exceeding Euro 50 million. Thus the definition of SME varies from
country to country and from region to region. The importance of SME sector is well-
recognized world over owing to its significant contribution 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. India has a vibrant SME sector that plays an important role in
sustaining economic growth, increasing trade, generating employment and creating
new entrepreneurship in India.
Importance of the SME sector:
The SSI sector in India employs around 26 million people and is involved with the
production of over 7500 industrial items with the product range varying from very
simple items produced with traditional technology to high tech products. At present,
the SSI sector accounts for over 90% of industrial units in the country, 40% of value
addition in the manufacturing output and approximately 35% of Indias exports. SSI
sector in India has been exhibiting a striking export performance. Barring few years,
exports have grown double digit in the last 10 years. Major sectors contributing to
SSI exports include readymade garments (27%), engineering goods (14.5%),
chemicals & pharmaceuticals, electronics & computers, and processed foods (11%
each).

Exim Bank and SMEs:
Indian SMEs require business advisory services to enhance their international

competitiveness in a highly competitive globalising world. The SMEs find the
services of reputed national and international consultants as not cost effective and
often, not adequately focused. Recognizing this knowledge gap, Exim Bank of India
has been endeavouring to provide a suite of services to its SME clients. These
include 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.
In the past, Exim Bank has implemented a number of innovative programmes

focusing primarily on SMEs. The Bank, in the past, has operated an Agency Line of
Credit for IFC and an Export Marketing Programme for the World Bank, which are
targeted towards SME sector. The Bank proactively assists SME units in establishing
their products in international markets. Exim Banks Lines of Credit help SMEs to
offer competitive credit term to the buyers and to explore newer geographical
markets. Recently, the Bank has signed a Memorandum of Cooperation with the
International Trade Centre (ITC), Geneva, to implement the Enterprise Management
Development Services (EMDS) programme, for supporting SMEs in their
globalisation efforts. This initiative is being launched by ITC for the first time in any
country.

AGRI FINANCE
The globalization and post-WTO scenario offers considerable scope for exports of
Indian agricultural products. 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. Term loans with
varying maturities are provided for setting up processing facilities, expansion,
modernization, purchase of equipment, import of equipment/technology, financing
overseas joint ventures and acquisitions 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), and
National Horticultural Board etc. Apart from financing, the Bank also provides a
range of advisory services to Agri exporters. Term loans with varying maturities are
provided for setting up processing facilities, expansion, modernization, purchase of
equipment, import of equipment/technology, financing overseas joint ventures and
acquisitions etc. The Bank has strong linkages with other stakeholders in Agri sector
such as Ministry of Food Processing Industries, Government of India, NABARD,
APEDA, Small Farmers' Agri-Business Consortium (SFAC), and National
Horticultural Board etc. Apart from financing, the Bank also provides a range of
advisory services to Agri-exporters. The Bank also publishes a number of Occasional
Papers, Working Papers on export potential of various sub-sectors in agriculture and
a bi-monthly publication in different languages on global scenario in agri-business
and opportunities therein.
Initiatives by Exim Bank for both Small and Medium Enterprises & Agri
finance:
Exim Bank has signed a Memorandum of Cooperation with DHAN Foundation,

Madurai (a leading NGO covering 3 lakh families in 4 states) for advisory and
financial support for export related activities for their grass root enterprises Set up
units to produce value-added products from organic tamarind grown in the area
Steps are on to set up an export oriented coco-peat projects To market products
made out of palm leaves and handmade papers in Europe through our overseas
offices.
1) To devise marketing strategy for marketing local handicrafts to foreign tourists

through 5 star hotels.
2) Exim Bank has signed Memorandum Of Cooperation with BASIX, Hyderabad.

BASIX promotes development for the rural poor and women, mainly through Micro-
credit and Micro Finance. Highlights of MoC:

a) joint consultancy studies,

b) productivity enhancement,
c) market linkages, capacity building,
d) entrepreneurship development,
e) commercialization of India's rural sector in overseas market
f) technical assistance to micro and small-enterprises in the farm and nonfarm
sectors in other developing countries,
3) Exim Bank along with BASIX to organise skill upgradation workshop for handloom
weavers in Mahabubnagar Mandal & for tussar silk weavers in Kosgi, Andhra
Pradesh
4) BASIX in association with Govt. of Rajasthan and UNDP is engaged in

discussions for developing export clusters in Rajasthan including Stone Carving and
Dari Cluster in Lawan, Dausa and Pottery Cluster in Basawa.
a)Exim Bank is engaged in helping the clusters in product development and

establishing export market linkages, organizing workshops and training programs for
skill upgradation of rural artisans.
b)Exim Banks Dubai ( formerly Budapest ) office helped in exporting sandstone

slabs to Hungary
5) Exim Bank has signed a Memorandum of Cooperation with Uravu (an NGO
involved in employment generation programs in the bamboo sector for tribal & poor
families in Waynad, Kerala) to provide larger visibility to bamboo-based handicraft
products. Highlights of MoC:
a) Facilitate promotion of Uravu's or its associates' products in overseas market.

b) Identification of suitable buyers / partners by Exim Bank for facilitating export
business of Uravu and its associates. c) Exchange of information on
international markets for various products, technology, trade, business and
investing opportunities to facilitate increased co-operation for commercial
exploitation in overseas markets.
c) d)Conducting joint studies and research in areas of mutual interest
6) Exim Bank has initiated discussion with handloom weavers cooperative societies
in Fulia (West Bengal) for marketing their products overseas
7) National Institute of Fashion Design, Handloom & Handicraft Export Promotion

Council and Directorate of Handloom, Govt. of West Bengal participated in the
discussions at Exims office in Kolkata
8) One suggestion under discussion is to form a marketing company with equity

participation by the weavers co-op, West Bengal Govt. and Exim Bank which will
take up marketing of the products

9) Feasibility report under preparation by Indian Institute of Social Welfare &

Business Management, Kolkata
10) Exim Bank is also associated with rural knowledge centre of M.S. Swaminathan
Research Foundation for providing technology inputs to rural areas.
Recent Developments
EXIMs focus on SMEs
Special Line of Credit from ADB: The Bank is negotiating a long term Line of Credit
of US$ 250 mn. From the Asian Development Bank, without Central Government
guarantee, for extending loans to SMEs . The Bank will have an option to draw the
funds in different currencies, as per the needs of its customers.
Innovative Programme for SMEs The Bank has entered into a cooperation
arrangement with International Trade Centre (ITC), Geneva, for implementing a
unique Enterprise Management Development Services (EMDS) program, which is an
IT based solution provider to enable small enterprises to prepare business plans with
international market in focus. This is a pioneering initiative for supporting SMEs and
for providing term loans and export finance facilities to the identified units to help
them in their globalisation efforts. The Bank has partnered ITC in implementing this
project. The Bank thus supports small enterprises through capacity building and
assistance in formulation of viable proposals. It is envisaged that the learning from
this programme would be transferred to other developing countries, and thus assist
in capacity creation and institution building in the global arena. The Bank has
partnered the Commonwealth Secretariat in the Commonwealth India Small
Business Competitiveness Development Programme. The objective of the
programme is to undertake capacity development initiative that promotes economic
development (increased employment, investment, trade and economic activity) in
Commonwealth member states by providing competitive strategies and policies on
SME development to practitioners and policy makers, and to build and develop
institutional capacity.
ADFIAP Development Award
The Association of Development Financing Institutions in Asia and the Pacific

(ADFIAP) Development Award recognises and honours ADFIAP member institutions,
which have assisted projects that have created a development impact in their
respective countries. Awards are given to member institutions, which have
implemented or enhanced outstanding and innovative development projects during
the year. The Bank has been conferred the 2008 SME Development Award.
The Award is in recognition of the Banks Enterprises Management Development

Services (EMDS) programme, an IT based solution provider to enable small
enterprises to prepare business plans with international market in focus.

CHAPTER 4
FLIM FINANCE

FILM FINANCE
The bank has till date-sanctioned loans more than Rs 33.15 crores for film
production .the first three films financed by Exim bank has been commercially
successful across India and overseas market. The bank, finances films with the
objective of boosting export earnings, films which promote India as a country and its
trade
FILMS FINANCED BY EXIM BANK.
Honeymoon Travels Pvt. Ltd.

Kabul Express
Dhoom -2
Don - The Chase Begins Again
Fanaa
Bunty Aur Babli
Salaam Namaste
Veer Zaara

CHAPTER 5
LINE OF CREDIT

Line Of Credit
Introduction
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 nonrecourse financing option to
Indian exporters, especially to SMEs, and serves as an effective market entry tool.
Exim Bank extends LOCs, on its own, as well as, at the behest of Government of
India.
How does it work?
1. Exim Bank signs LOC Agreement with overseas Borrower Institution (Borrower)
and announces the availability of LOC for utilization, when the Agreement becomes
effective.
2. Exporter checks with Exim Bank, available amount under the LOC and quantum of
service fee payable to Exim Bank, if any, and negotiates contract with Importer.
3. Importer approaches the Borrower for approval of the contract.

4. Borrower appraises the proposal. If satisfied, approves the contract and refers to
Exim Bank for concurrence for inclusion of contract for being financed under the
LOC.
5. Exim Bank accords approval to the contract, if in conformity with the terms of
LOC. Exim Bank conveys contract approval to the exporter and the Borrower.
6. The Importer arranges remittance of advance payment to the Exporter and also
opening of a Letter of Credit, which states that the contract is covered under Exim
Bank's LOC to the Borrower and reimbursement will be by Exim Bank for the Eligible
Value of Credit, upon compliance with stipulated conditions therein.
7. Exporter executes the contract/ships the goods/provides services.
8. Exim Bank/commercial bank in India, designated as the Negotiating Bank

negotiates shipping documents and pays the exporter.
9. Exim Bank reimburses the Negotiating Bank, on receipt of valid claim and service
fee, as applicable, by debit to the LOC account of the Borrower.
10. Borrower repays Exim Bank on due dates.
Procedural flow chart

Benefits to the Indian Exporter:
Under Exim Bank's LOCs, the Indian exporters can obtain payment of eligible value
from Exim Bank, without recourse to them, against negotiation of shipping
documents. The Indian exporter does not carry any credit risk either on the importer
or the importer's country, whilst the overseas importer enjoys deferred credit facility.
Thus, LOC is a safe mode of non-recourse financing option to the Indian exporter
and serves as a market entry tool for India's exports. The Indian exporter can also
increase his export volumes by offering deferred credit, where required.
Benefits to Overseas Importer of goods and services:
Exim Bank has been using the LOC mechanism for promoting India's exports to the
traditional as well as new markets in developing countries, which need deferred
credit for buying Indian machinery, goods and services. As the LOC is extended by
Exim Bank on internationally competitive terms, the overseas importer of Indian
goods is allowed access to the credit facility at competitive interest rates. The
overseas importer and the Indian exporter do not have to negotiate credit terms
separately as the credit arrangement between Exim Bank and the overseas borrower
financial institution is already in place.
Credit period allowed under the LOC Eligible Goods
Capital goods, plant and machinery, industrial manufactures, consumer durables and
any other items eligible for being exported under the 'Exim Policy' of the Government
of India.
Interest rate the overseas importer of Indian goods has to pay
The overseas importer of Indian goods has to approach the overseas borrower
financial institution/recipient of Exim Bank's LOC, for approval 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 Exim Bank's LOC, will depend on various 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 prevalent
in the country. It may however be mentioned that Exim Bank's interest rates on LOCs
being competitive, the importer would normally have to pay interest rate lower than
what he would otherwise pay to his Bank on similar credits.
Charges payable by the Indian exporter to Exim Bank
In respect of certain LOCs, the Indian exporter has to pay a service fee to Exim
Bank. The exporter should check in advance with Exim Bank the
quantum/percentage of service fee payable. In respect of LOCs extended by Exim
Bank, at the behest of Government of India, no service fee is normally payable by
the exporter to Exim Bank.

Minimum value of contract for being eligible for coverage under the LOC
Most of the LOCs stipulate a minimum contract value as US$ 50000. However,
under certain LOCs, the minimum value of contract could be different. Exporters
would be well advised to check the particulars of the individual LOC with Exim Bank.
Generally, export of capital goods and plant and machinery is allowed on credit
terms of upto 5 years, whereas the export of industrial manufactures, consumer
durables, raw materials and commodities is allowed on credit terms of upto 2 years.
However, the credit period allowed under each LOC could be different. There are
certain short-term LOCs which provide for credit period of 1 year, and there are
certain LOCs which permit credit period beyond 5 years. Exporters are advised to
check the details with Exim Bank, in advance. In respect of LOCs extended by Exim
Bank, at the behest of Government of India, credit period ranges from 8 years to 20
years depending on the categories of countries, based on their levels of incomes and
external debt.
The stage at which the Indian exporter should contact Exim Bank
The Indian exporter should contact Exim Bank before finalizing the price negotiation
with his prospective importer, if the transaction is intended to be covered under Exim
Bank's LOC. The exporter should ascertain details such as the service fee payable
to Exim Bank, the credit period permissible under the LOC, the payment procedure
involved and the contact person/department in the overseas borrower
institution/recipient of LOC. In respect of certain LOCs especially those extended by
Exim Bank, at the behest of Government of India, sectors/projects could be pre-
identified.
ECGC cover
As the LOC is a non-recourse financing option to the Indian exporter, he does not
have to obtain any ECGC cover.

CHAPTER 6
BANKS FINANCING ACTIVITIES

BANKS FINANCING ACTIVITES

FINANCE FOR EXPORT ORIENTED UNITS (EOUs)
For the purpose of our financing, an export oriented company is defined as any
company with a minimum export orientation of 10% of net sales, or annual export
sales of Rs 5 crores, whichever is lower.
PROJECT FINANCE
For setting up of EOUs:
Exim bank offers term loans for setting up of new projects, and acquisition of assets
for modernization/upgradation/exansion of existing units. The bank also extends
100% refinance to commercial banks, for term loan sanctioned by the lending bank
to an EOU.
For textile and jute industries:
The bank also extends finance to eligible units in textile and jute industries under
The Technology Up gradation Fund Scheme, to enable them to upgrade their
manufacturing facilities.
For software industry: The bank offers a comprehensive financing /services

package for the software industry. These include project/equipment finance, working
capital finance, and overseas investment finance, besides support for obtaining
product/process certification, export marketing and export product development. To
address the perceived constraint in the availability of trained software professionals,
Exim Bank extends term loans to software exporters for establishment/expansion of
software training institutes. Further, the bank also facilitates setting up of software
technology parks (STPs).
For Indian companies involved in port development and related activities:
Exim Bank extends term loans to Indian companies involved in construction of

ports/jetties, and for acquisition of fixed assets for stevedoring, cargo handling,
storage and related activities like dry docks and ship breaking.
WORKING CAPITAL FINANCE.
Exim Bank provides term loans (of 1year, 1-2years,and up to 5 years tenor) to
eligible EOUs, to help them meet their working capital requirements.

OTHER FACILITIES
Finance for R & D and Export Product Development:
Exim bank offers term loans to EOUs, for development of new technology to satisfy
domestic and international environment and standards, and to help them develop
and/or commercialize new product/process applications.
Finance for service sector: Services sectors financed by Exim Bank include
entertainment, health care, hospitality and shipping. Exim Bank has entered into the
business of film financing on a very selective basis to cover, inter alia, film production
and finance for distribution in overseas markets. The banks approach towards film
financing is to focus on films produced specifically for international audiences and/or
film projects, which have foreign exchange earning potential. The banks film finance
is targeted to select production and distribution houses with proven track record.
Natural resources:
Exim bank selectively provides term loans to Indian companies in their endeavor to
acquire overseas natural resources in terms of acquiring mining/exploration rights in
overseas locations. Exim; finance will be available to Indian companies for
acquisitions of such rights either on its own or in joint venture with an overseas
partner, subject to a reasonable proportion of the resources being destined for India.
Underwriting:
Exim bank extends underwriting commitment to Indian exporters, to help them raise
finance from capital markets through public/rights issues of equity shares
/debentures.
Export Marketing Finance:
Exim bank offers term loans to Indian companies, to aid them in their efforts to
penetrate and retain their presence in overseas markets, particularly in developed
countries.
Import loans:
Exim bank finances bulk imports of consumable inputs and canalized items
undertaken by manufacturing companies.
Guarantee facility:
Exim bank issues different kinds of guarantees for EOUs. These include:
a) export obligation guarantees;

b) deferred payment guarantees;
c) guarantees in favor of commercial banks/lending institutions abroad on behalf
of Indian exporters.

FINANCE FOR VENTURE OVERSEAS.

The bank has a comprehensive programme in terms of equity finance, loans,
guarantees and advisory services to support Indian outward investment.
Exim bank offers term loans to Indian companies, both for equity investment in their
ventures overseas as well as for on lending purposes.
Besides, Exim Bank also undertakes Direct Equity Stake in Indian Ventures Abroad,
to enable Indian companies to supplement their equity with Exim Banks equity
contribution.
OTHER SERVICES
EXPORT SERVICES
Exim bank offers a diverse range of information, advisory, and support services,
which enable exporters to evaluate international risks, exploit export opportunities
and improve competitiveness.
For Multilateral Agencies Funded Projects Overseas (MFPO):
Exim bank offers value added information and support services to Indian companies
seeking business in business funded by multilateral agencies such as World Bank,
Asian Development Bank, African Development Bank, European Bank for
Reconstruction and Development, and other official Development Agencies like the
Japan Bank for International Cooperation.
Services offered include:
a) Identification of business opportunities in funded projects.

b) Details on specific project of interest.
c) Information on procurement guidelines, policies and practices of multilateral
agencies.
d) Advice on preparation of Expression of Interest, Capability, Profile etc.
e) Advice on bids, with regard to bid evaluation, review of bid documents, etc.
Apart from these we also offer support services, such as liaising with Indian
missions, monitoring bid performance, assistance in prequalification etc.

Commercial services:
Exim bank undertakes customized research on behalf of interested companies, in

areas such as establishing market potentials, defining marketing arrangements, and
specifying distribution channels. We also assist companies in developing export
market entry plans, obtaining quality certifications and display of their products in our
overseas offices.
Country profiles:
Exim bank also undertakes country profiles, which assess the economic, political,
currency and credit risks involved, along with the export opportunities in the country
concerned.
Financial counselling:
Exim bank offer advice on how to access foreign currency finance from multilateral
institutions and import lines of credit, trade finance alternatives, collection/payment
systems, as well on the credit worthiness of business entities and banks.
Internationalization support:
Exim bank helps in identifying technology suppliers, partners, and in consummation

of domestic and overseas joint ventures, through its network of alliances and its
overseas offices. It also advice companies on regulatory clearances, and facilitate
tying-up finance for equity and working capital.
Information access:
Exim bank issues business opportunities alerts, which communicate business leads,
acquisition opportunities, industry trends as well as collaboration opportunities.
Building export capability:
Our Eximius Learning Centers in Banglore, Ahmedabad and Pune organize training
programmes, workshop and seminars for exporters. These programmes, often on
sector-specific issues, are conducted buy international experts from trade promotion
organizations and multinational companies. The bank also carries out research on
issues related to international trade, economics and sector/product/country studies,
which it publishes in the form of Occasional Papers and Working Papers.
The bank disseminates information on export opportunities and highlights

development that has a bearing on Indian exports, through its quarterly bulletin,
Eximius: Export Advantage.

Besides, this publication also carries a regular feature, country scan, which gives
update on the trade/investment climate in various countries. The bank also brings
out a bi-monthly publication titled Agri Export Advantage in English, Hindi and 10
regional languages. The bank supports three quarterly publications viz Indo African
business, Indo-LAC business and Indo-CIS Business. Exim Banks commitment
to promoting and supporting trade with the African, LAC CIS regions.
International merchant banking services:
Exim bank provides advisory services to Indian exporters to enable them to offer
competitive financial packages when they bid for exports.
EXIM BANK AS AN INTERNATIONAL CONSULTANT.
Exim bank shares its expertise in the creation and operation of a financial institution
in a developing country, with countries endeavoring to set up institutional
infrastructure for international trade. Our activities in this regard includes:
Feasibility study for establishment of an export credit and guarantee facility for
Gulf Co-operation Council (GCC) countries.
Setting up the Afriexim Bank, Exim Bank in Malaysia, and the export credit
guarantee company in Zimbabwe.
Designing and operational sing of export financing programmes in turkey and
South Africa.
Inputs regarding export marketing/export development for Armenia, Vietnam
and Ukraine.
Feasibility study, undertaken on the behalf of the government of Mauritius, for
projecting Mauritius as an investment hub for Indian firms.

CHAPTER 6
JOINT VENTURE AND PROMOTIONAL PROGRAMS

JOINT VENTURES
Global procurement consultants limited (GPCL) is a successful consultancy
company, promoted by Exim bank in 1996,in partnership with leading private and
public sector consultancy firms in India. GPCL provides procurement related services
particularly related to multilateral agencies such as World Bank, Asian development
bank and African development bank.
Global trade finance limited (GTF), a joint venture which had its shareholders,
Exim bank; FIM bank, Malta; and international finance corporation, Washington and
bank of Maharashtra commenced its business in September 2001.GTF offers
factoring for export and domestic receivables with credit protection. The focus of
GTFS activities is on market driven export-financing solutions for small and medium
sized Indian firms.
PROMOTIONAL PROGRAMMES
Promotional activities:
Exim Bank conducts Research Studies on products, sectors, countries, macro

economic issues relevant to international trade and investment. These include your,
a) Sector studies assessing export potential: the sectors covered are Computer
Software, Floriculture, Medicinal Plants, Steel, Jute, Sports Goods, Machine
Tools, Organic Products, Chemical and Pharma.
b) Bilateral trade and investment studies: Kazakhstan, Kyrgyz Republic,
Uzbekistan- Trade Potential. Israel, Sri Lanka, Australia & New Zealand
-Trade & Investment Potential .
c) International trade related studies: Transaction Costs of Indian Exports- An
Analysis, Business Practices of Successful Indian Exporters.
The Bank disseminates on export opportunities and highlights developments that

have a bearing on Indian exports, through its quarterly bulletin, Eximius: export
advantage. Its Eximius: Export advantage publication also carries a regular feature,
Country Scan, which gives updates on the trade/investment climate in various
countries. The Bank supports three quarterly publications viz. The Bank also brings
out a bi-monthly publication titled Agri-Export Advantage in English, Hindi and 10
regional languages. The bank supports three quarterly publications viz. Indo-Africa
Business, Indo Latin America Business, and Indo- CIS business. Support with
these magazines demonstrates Exim Banks commitment to promoting and
supporting the trade with Africa, Latin America and CIS regions.

CHAPTER 7
RUPEE RESOURCES OF EXIM BANK

RUPEE RESOURCES OF EXIM BANK
Term Deposits:
Issued for tenors 1 to 5 years.
Minimum size of each deposit is Rs. 10,000/-. Applicable rates On the deposits for
different tenors is published from time to time. An incentive in the form of a higher
rate is available to senior citizens. The deposits are non-transferable.
Term Money:
Bank can borrow term money for 3-6 months from scheduled commercial banks and
cooperative.
Banks at mutually agreed rates.
Certificates of Deposit (CD)
Issued for tenors 1-3 years at mutually agreed rates in multiples of Rs 1 lakh with
minimum amount of a CD from a single subscriber at Rs. 1 lakh. Eligible investors
include individuals (other than minors), corporations, companies, trusts, funds,
associations etc. and nonresident Indians (NRIs)
Commercial Papers (CPs)
Issued at a discount to the face-value at mutually agreed rates, for maturities of 15

days - one year in denomination of Rs. 5 lakh (face-value) or multiples thereof.
Eligible investors
Include individuals, banking companies, other corporate bodies registered or

incorporated in India
And unincorporated bodies, Non- Resident Indians (NRIs) and Foreign Institutional
Investors (FIIs) (investment By FIIs would be within the limit set for their investments
by the Securities and Exchange Board of India (SEBI)).
Bonds
Issued for a minimum maturity of 3 years. In respect of bonds having call / put or
both options, the same would not be exercisable before the expiry of one year from
the date of issue of bonds. The coupon on the bond may be fixed or floating (linked
to a mutually acceptable 'reference rate').
All the above instruments currently enjoy the highest safety rating from CRISIL,
ICRA and Fitch.
Distributors with proven track record can empanel with the Bank for arrangement of
term deposits.

CHAPTER 8
LETTER OF
CREDIT
INSURANCE
TO
OTHER BANKS

LETTER OF CREDIT INSURANCE TO OTHER BANKS

Summary
The Exim Bank Letter of Credit policy can reduce a banks risks on confirmations
and negotiations of irrevocable letters of credit issued by overseas financial
institutions for the financing of U.S. exports.
This policy affords commercial and political coverage against the failure of an
overseas financial institution (issuing bank), whether sovereign or private, to make
payment or reimbursement to the insured bank on an irrevocable letter of credit.
Coverage is also provided for the insured bank's refinancing of payments under a
sight irrevocable letter of credit of the issuing bank.
What is covered? The policy applies to irrevocable letters of credit which conform
with the Uniform Customs and Practice for Documentary Credits (UCP), 1993
revision, publication number 500 of the International Chamber of Commerce where
the insured has a relationship with the foreign issuing bank. The policy is not
applicable to revocable, back-to-back, red clause or conditional letters of credit.
Coverage applies to irrevocable letter of credit sales for goods produced in and
shipped from the United States during the policy period, and for services
Performed by U.S. personnel either in the U.S. or in a host country. Receivables for
products, which are less than 50% U.S. content, excluding mark-up, and certain
defence products, are not eligible for cover.
Terms up to 180 days from the date of first presentation of documents may be
extended for consumer goods, spare parts and raw materials. On a case-by-case
basis, agricultural commodities, fertilizer and capital equipment may be insured on
terms up to 360 days.
Principal amounts are covered up to the maximum insured percentages stated below
or as specified in the policy declarations. Documented interest is covered up to 180
days after the date of the issuing bank's default (or fewer days when the claim is
settled earlier). On letters of credit that are payable in U.S. dollars, the insured
interest rate is generally prime rate minus 0.5% or the rate stated in the credit
agreement, whichever is less. Exim Bank uses the prime rate published in the Wall
Street Journal, under the table "Money Rates."
The policy specifically excludes coverage for those transactions in which there is an
unresolved documentary dispute between the insured and the issuing bank.
Additionally, coverage is specifically excluded in situations in which the issuing bank
refuses documents at the time of presentation and seeks a refund from the insured
bank to which a reimbursement has already been made.

ELIGIBLE INSURED BANKS
The policy may be issued to any bank doing business in the United States in
accordance with applicable federal or state banking laws and regulations. An
application, form EIB92-34, is required. The insured bank must act under the terms
of the UCP as the paying, accepting, or negotiating bank for the insured transaction.
PERCENTAGES OF COVER
The Bank Letter of Credit policy provides coverage against losses caused by events
such as war, revolution, expropriation or confiscation by a governmental authority,
cancellation of import or export licenses, and foreign exchange inconvertibility, and
commercial losses caused by events such as insolvency of the foreign issuing bank,
and failure to reimburse or to pay for other reasons.
Equalized coverage for commercial and political risks (comprehensive cover), or

political only coverage is available at the following maximum percentages
HOW THE POLICY WORKS
The policy affords coverage for eligible issuing banks in 2 ways:
1) As determined by Ex-Im Bank based on the insured's submission of an issuing

bank credit limit (IBCL) application, form EIB92-36, for the overseas financial
institution and issuance by Ex-I Bank of a written credit approval in form of a policy
endorsement. The application requires disclosure of all relevant financial information
on the issuing bank.
High credits may be extended up to the amount specified in the IBCL, which
generally remains valid for a maximum period of 12 months. Once issued, the IBCL
becomes a revolving credit approval limited only to the approved issuing bank with
specified terms and tenor.
Exim Bank has published its Short-Term Credit Standards (EIB99-09) - Buyers, for
Letter of Credit Transactions that may be consulted to determine the likelihood of
approval of the confirming bank and the issuing bank.
2) By use of a Discretionary Credit Limit (DCL) given to the insured bank. The DCL
requires the insured bank to have specified documentation of the issuing banks
creditworthiness, such as a short-term debt rating or minimum net worth and
profitability. Alternately, the insured bank may evidence satisfactory experience with
the issuing bank.
Under the DCL, political risks coverage is provided against those of the country of
the issuing banks head office. If the insured bank wants coverage against the
political risks of the country of the issuing bank, when different from the country of
the issuing banks head office, it must specifically apply for that cover (see IBCL
above).

The insured bank is required to obtain an Exporter Certificate, form EIB94-07,

certifying, among other things, that a letter of credit has been established in support
of the described transaction and that the goods are manufactured or produced in and
shipped from the United States. If the beneficiary of the letter of credit is an entity
other than the exporter, a Beneficiary Certificate, forms EIB92-37, is required.
PRE-PRESENTATION AGREEMENT
Prior to the presentation of documents on the insured bank under a letter of credit
and at the time an insured bank commits to finance or pay, the insured may obtain a
pre-presentation agreement under which ExIm Bank agrees not to withdraw
coverage, add, delete, or amend any policy condition, credit limit or other limitation,
including the country limitation schedule for a period of up to 90 days.
The policy also sets forth a method by which this optional agreement may be used
and extended for additional time under the Discretionary Credit Limit.
WHAT THE INSURED AGREES TO DO
The insured agrees:
To submit reports to ExIm Bank, form EIB92-30, listing appropriate bank

commitments and insured transactions, with payment of the corresponding
premiums (which will vary from month to month with the level of activity);
To report all amounts past due (insured and uninsured), form EIB92-27, from
the foreign issuing bank;
Not to enter into an insured transaction with an issuing bank that is 30 days or
more past due;
To obtain Ex-Im banks prior written approval for rescheduling or accelerating
any insured transaction;
To make written demands for payment on the foreign issuing bank within 30
days after default; To exercise reasonable care to minimize or prevent loss;
To maintain evidence of the documents or experience used to exercise a
Discretionary Credit Limit.
CLAIMS AND PAYMENTS
Claims may be filed no earlier than 60 days and no later than 120 days after the
date of default. Prior to claim submission, the insured is required, within 30 days of
default, to make written demand for payment on the issuing bank. The insured is
required to file a release and assignment form with Exim Bank, transferring any
rights to the defaulted receivables and any security when the claim is paid, so that
recovery may be attempted.
Exim Bank will pay claims within 60 days of receiving a satisfactorily completed and
documented proof of loss, form EIB92-39.

CHAPTER 9
RECENT DEVELOPMENTS AND NEWS

HIGHLIGHTS

Recent Developments And News Highlights
Exim Bank of India finances three drinking water projects
The Exim Bank of India signed an agreement with the National Water Supply and
Drainage Board on Monday to finance three projects in Sri Lanka to the tune of USD
403 million to provide pipe borne water to about one million people.Following is the
text of a statement issued by the Indian High Commission in Colombo in this regard:
Export-Import Bank of India (Exim Bank) on March 08, 2016 signed Buyers Credit
Agreements, under National Export Insurance Account (BC-NEIA) amounting to US$
403.01 million with National Water Supply and Drainage Board (NWSDB) of Sri
Lanka in Colombo, for financing the following three water supply projects:
a) Alutgama, Matugama and Agalawatte Integrated Water Supply Project;

b) Polgahawela, Pothuhera and Alawwa Integrated Water Supply Project; and
c) Kundesale, Haragama Water Supply Project
The agreements were signed by Yaduvendra Mathur, Chairman and Managing

Director (CMD), on behalf of Exim Bank and Eng. Kuddoos Alahudeen Ansar,
Chairman, NWSDB and Mohamed Shafeek Rajabdeen, Vice Chairman, NWSDB,
Sri Lanka in the presence of Minister of City Planning and Water Supply of Sri
Lanka, Rauf Hakeem, High Commissioner of India, Y.K. Sinha and senior officials of
the Government of Sri Lanka. Speaking on the occasion, Minister Rauf Hakeem
expressed satisfaction at the conclusion of these agreements and thanked the
Government of India for financing the three water supply projects, adding that the
projects would supply potable water to nearly one million people. The CMD, EXIM
Bank thanked the High Commission for facilitating the conclusion of these Buyers
Credit agreements and reiterated EXIM Banks commitment to finance further
projects in Sri Lanka. Under the Buyers Credit portfolio, EXIM Bank has already
extended credit amounting to nearly US$ 185 million to Sri Lanka for water supply
and other projects.The Buyers Credit Scheme of India is a unique financing
mechanism that provides a safe mode of nonrecourse financing option to Indian
exporters and serves as an effective market entry tool to traditional as well as new
markets in developing countries, which need deferred credit on medium or long term
basis.

CHAPTER 10
CONCLUSION

CONCLUSION
Exim bank is a sole government organization authorized to carry on all the functions,
duties and regulations relating to the export and import of all the various goods and
services. Today Exim bank is not only an import and export bank, but it has grown
over the years and as the time passed it now stands as a large financial institution
which has adopted all the basic requirements and has gained enormous fame and
has made a mark in the entire globe. Established in 1982, with the objective of
promoting Indias international trade and to function as the principal financial
institution for co-coordinating the working of institutions engaged in financing imports
and exports of goods and service.
Exim banks mission is to facilitate globalization of Indian business. Today India has
emerged as a developing country and has faced many challenges and hurdles and
has successfully overcome the tag of underdeveloped to developing and is soon
going to be felicitated with the tag of developing country. With large infrastructure of
various projects lined up and the industrial sector which has attained a boom in the
recent past has led India to climb another milestone and Exim bank is one of the
tools to develop Indias foreign trade. This has played a major role in supporting India
for becoming one of the successful countries in the world.
Today Exim bank has emerged as a huge financial institution in the world, which has
not only undertaken import and export duties but is also catering to the various
needs of other sectors of the industry.

CHAPTER 11
LAST
WORDS

THE LAST WORDS
The journey, long with many hurdles along the way, but at every step was a higher
learning & a better understanding of why the Export Import Bank of India is well
established in the minds of many, today. While working on this project I came to
realize that the essence of Exim Bank lies with its ability to recognize the changing
global scenario and move ahead with the world, by extending financial assistance to
different countries in the form of loans, advances, consultancy, rediscounting
facilities, working capital finance, project finance and not to mention its Lines of
Credits facility. Because of its range of differentiated and tailor-made products and
services, the Bank has been able to achieve international recognition & today it can
be truly called a catalyst for Indias international trade. With the advent of
globalization, the barriers to trade are getting dismantled & the dividing lines
between national & global markets are slowly disappearing. Towards facilitating
inclusive globalization is the banks new initiative, which has been seen through its
involvement in creating export capability in small & medium enterprises, grassroots
business enterprises & agro industries. Exim Bank recognizes that the these sectors
have great potential & with the right assistance, support, investment & expertise, the
purchasing power at the bottom of the pyramid can increase thus leading to a
gradual effect in all other sectors and thus the overall development of the economy
which was ultimately the aim of the Bank at the time of its incorporation and still is.
Throughout the entire project we have referred to all the various functions and duties
that Exim bank has undertaken in all these years. This project has mainly put light on
Exim bank of India.Exim bank of India has grown exceptionally well in all those years
and catered to the needs of all those thousands and millions of people in their export
and import regulations. It is the backbone of Indians foreign trade and today that
Indias foreign trade is touching heights, Exim bank has played the major role in
fulfilling that expectation.
It is now Indias one of the largest financial institution and is acclaimed worldwide for
all the functions it carries out. It has been graded A+ + + by CRISIL.it has taken
various functions apart from export and import duties. Lastly we can say that it is not
just a bank, but an enormous financial institution, which is leaving no stone unturned
in making its mark globally.

CHAPTER 12
BIBLIOGRAPHY AND REFERENCE

BIBLIOGRAPHY
Books:
Banking Theory and Practice by Sundaram and Varshney.
Practice and law of Banking by B.S. Khubchandani.
Export Import Financing by Gerhard.W.Scheider
Publications:
Export-Import Act of India 1981
News letters- Eximius, June 2008, March 2008.
Annual Report 2007-2008 Exim Bank. Brochure- Exim Bank Of India
Newspaper referred:
Economic Times
Hindu Business Line
DNA
WELIOGRAPHY
WEB SITES:
www.rbi.org.in
www.eximbankindia.com
www.commerce.nic.in
www.eximbankagro.com
www.eximcomm.com


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Study of Export Import Bank of India

PROJECT REPORT ON:

STUDY OF EXPORT IMPORT BANK OF INDIA

TELI ANJALI RAMCHANDRA

T. Y .BANKING AND INSURANCE (SEMESTER V)

PROF. VENKATESH SUBRAMANIAM

Academic Year: 2016-17

Thakur college of Science and Commerce Page 1

I, TELI ANJALI RAMCHANDRA from THAKUR COLLEGE OF

TELI ANJALI RAMCHANDRA

Thakur college of Science and Commerce Page 2

This is to certify that the project entitled is successfully done by

Coordinator Project Guide Principal

Internal examiner External examiner

Thakur college of Science and Commerce Page 3

I would like to thank my Project Guide PROF. VENKATESH

Thakur college of Science and Commerce Page 4

Sr No. Particulars Pg No.

CHAPTER 1 INTRODUCTION 6-11

CHAPTER 2 BANKS MAJOR PROGRAMS 12-16

CHAPTER 4 FLIM FINANCE 23-24

CHAPTER 5 LINE OF CREDIT 25-29

CHAPTER 6 BANKS FINANCING ACTIVITIES 30-35

CHAPTER 8 RUPEE RESOURCES OF EXIM BANK 38-39

CHAPTER 11 CONCLUSION 46-47

CHAPTER 12 LAST WORDS 48-49

CHAPTER 13 REFERENCES 50-51

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ORIGIN AND HISTORY

An act to establish a corporation to be known as the Export-Import Bank of India for

Exim Banks mission statement: To develop commercially viable relationships with

Thakur college of Science and Commerce Page 7

To translate national foreign trade policies into concrete action points.

To develop mutually beneficial relationships with the international financial

To initiate and participate in debates on issues central to Indias international trade.

To anticipate and absorb new developments in banking, export financing and

To be responsive to export problems of Indian exporters and pursue policy

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The Organization: Objective, Vision & Functions

Thakur college of Science and Commerce Page 9

People orientation and customer focus.

Customer-responsiveness is germane to the Banks philosophy. The Bank constantly

Multilateral agencies such as World Bank, Asian development Bank;

Export credit agencies;

Trade and investment promotion agencies abroad; and

Trade and industry association in India.

Thakur college of Science and Commerce Page 10

2) Financing of exports and imports of machinery and equipment on lease basis.

3) Financing of joint ventures in foreign countries.

5) Undertake limited merchant banking functions such as underwriting of stocks,

6) Provide technical administrative and financial assistance to parties in connection

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BANKS MAJOR PROGRAMS

FOR INDIAN COMPANIES EXECUTING CONTACTS OVERSEAS

FOR PROJECTS EXPORTERS.

For Exporters of Consultancy and Technological Services.

Indian companies can avail of these to furnish requisite guarantees to facilitate

Forfeiting is a financing mechanism that enables a company to convert credit sale to

Thakur college of Science and Commerce Page 13

FINANCE FOR EXPORT ORIENTED UNITS.

TERM FINANCE FOR EXPORTING COMPANIES