Trade financer Export-Import (Exim) Bank of India has sought capital worth Rs 1,700 crore from the government for FY17, chairman and managing director Yaduvendra Mathur said on Monday.
“In the last two financial years (FY15 and FY16), our equity has been growing by Rs 1,300 crore each. This means we could lend Rs 13,000 crore every year. We have asked for Rs 1,700 crore (from the government) for 2016-17,” he said.
Under the Exim Bank Act amendment in 2011, the authorised capital of the bank should be Rs 10,000 crore or such amount that government may decide, and the bank has asked the government to increase its paid-up capital, he said.
“Our equity right now is Rs 5,300 crore. We are telling the government to bring us to Rs 10,000 paid up capital at the earliest. We have requested that this should be bridged in the next three years,”
The bank, Mathur said, is also planning to tap the bond market in order to raise over $1 billion in the next few months.
“We are looking at a big issue, which will be in excess of $1 billion in the next couple
of months for some of the big infrastructure projects that are now coming up,” Mathur said.
Exim Bank is also looking to grow its non-fund business or its guarantee business. Currently at about 10% of the bank’s book, it is looking at the guarantee business for growth going ahead.
“Currently, we are doing actual lending, but we want to move more into guarantee business. For example, the US Exim Bank is 90% guarantee and only 10% is the actual lending. We want to move in that direction because there we have a different headroom (to grow our overall balance sheet),” Mathur said.
The bank’s capital adequacy ratio stands at 15% as against the regulatory requirement of 9% which provides it more opportunity to grow portfolio, Mathur said.
So far in this financial year, Exim Bank has raised $500 million through green bond and another $500 million through a dollar denominated bond.