Why this matters now
EXIM Bank is tested for: EXIM Bank Act 1981; commenced 1 March 1982; Lines of Credit (LoCs) programme on behalf of GoI = key Indian development assistance to developing countries; National Export Insurance Account (NEIA) for medium + long-term projects; over $30 bn cumulative LoCs to 65 countries; sovereign + corporate dollar bonds; merger of EXIM Bank + ECGC retained separate.
History
- EXIM Bank Act 1981 passed July 1981.
- 1 March 1982: commenced operations as wholly-owned Government of India institution; spun out of IDBI’s International Finance Division.
- 2003: first $250 mn international bond issuance.
- 2006: National Export Insurance Account (NEIA) created.
- 2012: first sustainability-linked Green Bonds.
- 2021: recapitalisation Rs 1,500 cr by GoI.
- 2022: EXIM Bank India Development Initiative (EBIDI) framework refreshed.
Functions
- Buyer’s + Supplier’s credit for export finance.
- Lines of Credit (LoCs) to foreign governments + banks: GoI extends concessional credit, EXIM Bank disburses; recipient must use 75% Indian goods/services. Major LoC recipients: Africa ($12 bn+), Bangladesh ($8 bn+), Sri Lanka ($1 bn), Bhutan, Nepal, Vietnam, Mongolia, Mauritius.
- Project finance + EPC contracts globally.
- Overseas Investment Finance to Indian companies for JVs/WOSs abroad.
- National Export Insurance Account (NEIA) — mid-to-long-term export insurance for high-risk markets.
- Forex Earnings Programme: working capital + capex for exporters.
- Foreign Trade Promotion + Research: Occasional Papers + sector studies.
Recent
EXIM Bank loan book (FY24): Rs 1.66 lakh crore; profit Rs 1,777 cr. LoCs as of 2024: $32 bn+ cumulative to 65 countries, ~308 LoCs sanctioned. Top recipients: 8 African countries account for ~40%. India’s Vibrant Gujarat Summit 2024 saw EXIM Bank sign $1 bn+ MoUs with Mauritian and Mozambique infra projects. EXIM Bank also issued $1 bn 10-year sustainability bond Jan 2024 — oversubscribed 2x.
UPSC angle
Know EXIM BANK — Export-Import Bank of India; EXIM BANK ACT 1981 passed July 1981; commenced 1 MARCH 1982 wholly-owned Govt of India (spun out IDBI Intl Finance Div); HQ MUMBAI; MD+CEO HARSHA BANGARI since 5 Sept 2022 (FIRST WOMAN MD); FUNCTIONS: (1) Buyer’s+Supplier’s credit export finance; (2) LINES OF CREDIT (LOCS) to foreign govts+banks (GoI extends concessional, EXIM disburses, 75% Indian goods/services), major recipients AFRICA $12 bn+ (8 countries 40%), Bangladesh $8 bn+, Sri Lanka $1 bn, Bhutan+Nepal+Vietnam+Mongolia+Mauritius; (3) Project finance+EPC globally; (4) OVERSEAS INVESTMENT FINANCE Indian co JVs/WOSs abroad; (5) NEIA NATIONAL EXPORT INSURANCE ACCOUNT 2006 mid-to-long term high-risk markets; (6) Forex Earnings Programme exporters; (7) Foreign Trade Promotion+Research Occasional Papers; FY24 loan book Rs 1.66 LAKH CR + profit Rs 1777 cr; LOCS $32 BN+ cumulative 65 countries ~308 LoCs sanctioned; Vibrant Gujarat 2024 $1 bn+ MoUs Mauritius+Mozambique; $1 bn 10-year sustainability bond Jan 2024 oversubscribed 2x.
Frequently asked questions
When was EXIM Bank established?
Under the EXIM Bank Act 1981; commenced operations 1 March 1982. Wholly-owned by Government of India. HQ at Mumbai.
What are Lines of Credit?
Concessional credit lines extended by GoI through EXIM Bank to foreign governments/banks. Recipients must use 75% Indian goods/services. India’s flagship development-assistance tool.
How much in LoCs has EXIM Bank disbursed?
$32 billion+ cumulative to 65 countries (~308 LoCs) by 2024. Africa accounts for $12 bn+, the largest regional concentration.
Who is the current EXIM Bank MD?
Harsha Bangari — since 5 September 2022. First woman MD of EXIM Bank.