May 16 2010 , Kolkata
The Exim Bank has decided to join hands with commercial banks to offer comprehensive products to companies in foreign trade.
"We have decided not to get into a rate war with banks in the areas we operate, but rather complement them in offering services and products," Exim Bank Chairman and Managing Director T C A Ragnganathan told PTI.
"There are some products which commercial banks are not interested in, like country risk and cluster financing," he said.
"We will try to offer single window service to an organisation where few products may be offered by commercial banks and we will offer complete solutions to trade without affecting our margins," Exim Bank Executive Director Prabhakar Dalal said.
He, however, said that this did not mean that existing products would not be offered if required.
Dalal said the focus would also be in offering financing for overseas investments by Indian corporate entities.
Ragnganathan said it would take time for the shift in strategy and in the next six to 12 months, some results would be seen.
Meanwhile, Exim Bank's total borrowings for 2010-11 would be Rs 24,000 crore, 20 per cent higher than the previous year.
The bank would raise the amount through a mix of rupee and foreign currency loans.
It was close to raising USD 100 million from the Asian Development Bank (ADB) to provide funds to eligble SMEs.
"We are in the final lap to raise USD 100 million for small and medium enterprises in states like Assam, Madhya Pradesh, Orissa, Uttar Pradesh, Chhattisgarh, Jharkhand, Rajasthan and Uttarakhand," Ragnganathan said.
The bank intended to extend loans through development of clusters in different sectors.
The foreign trade development bank had also raised 150 million euro from the European Investment Bank to promote green energy and projects that reduce greenhouse gas emissions.
Another USD 200 million was raised through five-year bonds from the euro dollar market.
"We have decided not to get into a rate war with banks in the areas we operate, but rather complement them in offering services and products," Exim Bank Chairman and Managing Director T C A Ragnganathan told PTI.
"There are some products which commercial banks are not interested in, like country risk and cluster financing," he said.
"We will try to offer single window service to an organisation where few products may be offered by commercial banks and we will offer complete solutions to trade without affecting our margins," Exim Bank Executive Director Prabhakar Dalal said.
He, however, said that this did not mean that existing products would not be offered if required.
Dalal said the focus would also be in offering financing for overseas investments by Indian corporate entities.
Ragnganathan said it would take time for the shift in strategy and in the next six to 12 months, some results would be seen.
Meanwhile, Exim Bank's total borrowings for 2010-11 would be Rs 24,000 crore, 20 per cent higher than the previous year.
The bank would raise the amount through a mix of rupee and foreign currency loans.
It was close to raising USD 100 million from the Asian Development Bank (ADB) to provide funds to eligble SMEs.
"We are in the final lap to raise USD 100 million for small and medium enterprises in states like Assam, Madhya Pradesh, Orissa, Uttar Pradesh, Chhattisgarh, Jharkhand, Rajasthan and Uttarakhand," Ragnganathan said.
The bank intended to extend loans through development of clusters in different sectors.
The foreign trade development bank had also raised 150 million euro from the European Investment Bank to promote green energy and projects that reduce greenhouse gas emissions.
Another USD 200 million was raised through five-year bonds from the euro dollar market.
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