Exim reports 10% growth in profits at Rs 742 crore

MUMBAI: Exim Bank reported a 10% growth in net profit during the financial year ending March'13.

Net profits amounted to Rs 742 crore, up from 675 crore, a year ago. The export finance institution The export finance institution will transfer Rs 263 crore to the government for the year, up from Rs 205 crore, a year ago.

Exim's loan assets grew 20% to Rs 65563 crore as on March'13, from Rs 54530 crore. While loan approvals aggregated Rs 40960 crore, down from Rs 44412 crore in the previous years, disbursals aggregated Rs 40635 crore, up from Rs 37045 crore in the previous year.

With a mandate to promote exports of medium and small enterprises, Exim is lobbying with the government to define the definition of medium enterprises to the international levels. While in India a firm with Rs10 crore investments would qualifies as a medium sized enterprise, in Euro zone for instance the size is euro 50 million. The export finance institution is also refinancing foreign currency loans extended by commercial banks "We price it at 30 to 40 bps price advantage over peers" said Exim chairman and managing director, TCA Ranganathan. (one bps or basis point is 0.01%). The bank has already disbursed Rs 800 crore under this scheme.

During the year, the bank raised Rs 38569 crore from both the domestic ( Rs 17012 crore) as well as the overseas markets ( Rs 21557 crore or $3.7 billion). It also received Rs 200 crore capital from government of India.