“For the full year (FY2022), we have a target of eight to 10 per cent (credit) growth,” exim bankManaging Director Harsha Bangari told reporters.
He added that the demand for loans in the market is generally low, adding that the credit growth of Exim Bank may not be much different from the growth rate of the banking sector.
In the financial year ended March 31, 2021, Exim Bank’s loan portfolio grew by 4.43 per cent to Rs 1,03,851 crore as compared to Rs 99,447 crore in FY20.
It had reported a profit after tax of Rs 254 crore in FY21 as against Rs 124 crore in the previous fiscal.
Speaking about the asset quality, he said that there are some accounts which have become non-performing loans (NPAs) and are under the radar of the bank.
“So, for the remaining six months, I see the slippage ratio very much under control and our gross NPA ratio has improved substantially,” said Bangari.
In FY21, its slippage ratio increased to 1.52 per cent from 1.94 per cent in FY15. Net NPAs stood at 0.51 per cent from 1.77 per cent in FY20.
He said that the bank follows very aggressive provisioning and ensures that all NPAs are provided.
He said last year the provision coverage ratio was more than 95 per cent and in this financial year it will be more than that.
“In terms of asset quality, we are much better than last year or last two-three years,” said Bangari.
As part of a consortium, the bank has identified nine accounts worth Rs 700-800 crore to be transferred to NARCL.
On foreign fundraising plans, he said the export credit agency on an average raises $2 billion to $3 billion every year. Fundraising amounts depend on the bank’s growth trajectory and refinancing needs.
“In the year 2021-22, I don’t have any major obligation to repay the debt. I would say that for the current year we are planning to raise around US$ 2 billion,” she said.
It said it has already raised USD 1 billion and may enter the bond market in January 2022 to raise another USD.
He said that out of Rs 1,500 crore budgeted capital investment for the current fiscal, the development finance institution received Rs 750 crore capital from the government during the April-September period.