Exim Bank to raise up to $3 billion through capital markets in FY20

Export-Import Bank of India (Exim) will raise up to $3 billion (nearly Rs 21,000 crore) in bonds and loans through capital markets in 2019-20.

David Rasquinha, managing director, says it will begin to scout the markets from July. The timing will depend on requirement and market conditions. The bank would prefer to tap the American market, being wider and deeper.

In 2018-19, Exim Bank raised foreign exchange aggregating to $1.22 billion (Rs 8,530 crore) through a variety of instruments. Its net profit in FY19 was Rs 82 crore, after a net loss of Rs 2,924 crore in 2017-18. Its loan portfolio fell to Rs 93,617 crore, from Rs 107,532 crore the previous year.

Gross NPAs reduced to Rs 11,678 crore in FY19, from Rs 11,976 crore. Net NPAs were Rs 2,288 crore, from Rs 4,028 crore at the end of FY18. The provision coverage ratio improved to 85 per cent, from 71 per cent. This year, the bank expects recovery of Rs 3,000-3,500 crore from stressed accounts facing resolution under the Insolvency and Bankruptcy Code.

An exposure of about Rs 2,000 crore to Videocon Oil Ventures (VOV) was categorised as an NPA in FY19, the provision in the balance sheet being Rs 700 crore. Exim has been

making a prudential provision for this firm’s account over two to three years. The provision now fully covers the account. VOV has an oil exploration business in Brazil and a lenders’ consortium, headed by SBI, has appointed a valuer for the firm.