Exim Bank targets 8-10% loan growth in FY2022, CEO Harsha Bangari says
Export-Import Bank of India (Exim) Bank is forecasting 8-10% growth in its loan portfolio in the current fiscal year, a senior bank official said on Thursday.
In the first half of the 2021-2022 fiscal year, the development finance institution recorded lending growth of 5%.
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“For the full year (fiscal year 2022), we are aiming for 8-10% growth (in loans),” Exim Bank CEO Harsha Bangari told reporters.
Generally, the demand for credit in the market is moderate, she said, adding that Exim Bank’s credit growth cannot be much different from the growth rate of the banking sector.
In the fiscal year ended March 31, 2021, Exim Bank’s loan portfolio grew 4.43% to Rs 1,03,851 crore, compared to Rs 99,447 crore in fiscal 2020.
He had reported an after-tax profit of Rs 254 crore in fiscal year 21, compared to Rs 124 crore in the previous fiscal year.
Speaking about the quality of the assets, she said there were a few accounts that have turned into Non Performing Loans (NPAs) and these are under the bank’s radar.
“So for the remainder of the six months, I see that the slip ratio is very under control and a substantial improvement in our gross NPA ratio,” Bangari noted.
In FY2021, its glide ratio improved to 1.52% from 1.94% in FY20. Net NPA stood at 0.51% compared to 1.77% for fiscal 2020.
The bank is following very aggressive provisioning and ensuring that all NPAs are scheduled, she said.
Last year the provision coverage ratio was over 95 percent and this fiscal year will be higher than that, she added.
“In terms of asset quality, we are much better than what we were last year or, for that matter, the last two or three years,” Bangari said.
As part of a consortium, the bank identified nine accounts worth Rs 700-800 crore to transfer to NARCL.
Regarding overseas fundraising plans, she said, the export credit agency raises an average of $ 2-3 billion each year. The amount of fundraising depends on the bank’s growth trajectory and refinancing needs.
“In 2021-2022, I don’t have a huge debt service obligation. I would say about $ 2 billion this year is what we plan to raise, ”she said.
She has already raised $ 1 billion and could enter the bond market in January 2022 to raise another $ 1 billion, she said.
Of the 1,500 crore rupee capital injection budgeted for the current fiscal year, the development finance institution received capital of 750 crore rupees from the government during the period April-September, has t -she adds.