AN ANALYSIS OF THE GROWTH OF EXIM BANK AS INDIA’S PREMIER EXPORT FINANCING INSTITUTION

Abstract

Finance is the life and blood export transactions due to the prevalence of novel non-price competitive techniques encountered by exporters in various nations to enlarge their share of world markets. The selling techniques are no longer confined to mere quality; price or delivery schedules of the products but are extended to payment terms offered by exporters. Liberal payment terms usually score over the competitors not only of capital equipment but also of consumer goods. The payment terms however depend upon the availability of finance to exporters in relation to its quantum, cost and the period at pre-shipment and post-shipment stage. This paper studies the role of EXIM BANK in promoting export finance and analysing its Financial Performance. The study also covers the overview of total net profit transferable to Central Government by the EXIM BANK OF INDIA. The time period chosen is from 2004 to 2014, which essentially covers the last decade. We have used various graphs and charts to establish the overall growth of EXIM BANK in terms of Approvals, Loan Portfolio, Guarantees Portfolio, Paid-up-Capital, Reserves, Borrowings and Profit After Tax. We concluded that the increasing trend of profits and the balance of profit which has been transferred to the Central Government is increasing, making EXIM BANK OF INDIA a successful Government institution. There is also a need for coordination between banks and financial institutions making the role of EIGC important in timely settlement of claims which will act as an impetus for a favourable export business.