To support Indian exports Export-Import Bank of India may raise about $3 billion in FY22, as against $2 billion in FY21, while the global trade gradually opens up.

David Rasquinha, MD & CEO of the bank, told about his recognition for the demand for pharmaceuticals, chemicals, home textiles, among others, gaining traction as advanced economies are gradually coming out of the Covid-19 pandemic. According to him, this opens up an opportunity for the Indian exporters. Exim Bank foresees credit growth in the 7-12% range in FY22 against 7% in FY21, depending on how swiftly the economy recovers and how the exchange rate moves. Harsha Bangari, Deputy Managing Director, noted that the borrowings by Exim Bank will be carefully tuned to match credit growth in FY22. In January 2021, the bank raised $1 billion for a 10-year tenor at a coupon rate of 2.25% in the 144A/Reg-S format.

Meanwhile, Exim Bank, which is a wholly-owned government of India subsidiary, reported a 105% jump in net profit at ₹254 crores in FY21 as against ₹124 crores in the year-ago period. The loan portfolio edged up 4.43% y-o-y to ₹1,03,851 crore as of March-end 2021 against ₹99,447 crores in FY20. Non-fund portfolio declined about 10% y-o-y to ₹14,229 crores against ₹15,869 crores in FY20. Rasquinha emphasized that Exim Bank gives almost 80% of its loans in foreign currency. So, when the rupee appreciates against the dollar, the loan portfolio in rupee terms comes down. However, in dollar terms, the loan growth was 7% in FY21.