Results: Exim Bank’s PAT more than doubles in FY2021; net NPA down by 126 bps

Mumbai-headquartered Export Import (Exim) Bank of India’s profit after tax (PAT) doubled in FY 2021. It was at Rs 254 crore in FY 2021, as against Rs 124 in FY 2020. It reported 105 per cent rise in FY 2021.

The net NPA ratio was at 0.51 per cent in the last fiscal, down by 1.26 per cent (126 bps) from the year-ago period's 1.77 per cent. The provision coverage ratio improved by nearly 8 percentage points to 96.74 per cent. About 97 per cent of the stock of NPAs (Non-Performing Assets) is from legacy dud assets, which had resulted in a rise in NPA ratio in the past and only 3 per cent of the stock are loans given after April 2017.

The lender reported a 4.43 per cent rise in loan portfolio from Rs 99,447 crore in FY 2020 to Rs 103,851 crore in FY 2021.

During FY 2020-21, Exim Bank on behalf of the government of India extended 20 LOCs, aggregating US$ 2.23 billion, to support export of projects, goods, and services from India. “Exim Bank has built up a portfolio of 272 GOI-LOCs with credit commitments aggregating US$ 26.76 billion which are at various stages of implementation.”

Its Managing Director David Rasquinha said that on a currency neutral basis, it witnessed a loan growth of 7 per cent in the last financial year but the Rs 2.51 appreciation in the rupee against the dollar resulted in the reported number being lower at 3.5 per cent. This was because a bulk of the bank's Rs 1.03 lakh crore book is linked to the greenback.

The bank is "cautiously optimistic" about growth in FY22, and is aspiring to grow its book by 7-12 per cent on a currency neutral perspective.

Rasquinha said major markets for Indian exporters like the US and Europe have already recovered which will lead to a greater role to be played by the bank for supporting domestic exporters.

While the funded exposure rose 3.5 per cent, the non-fund exposure in the form of guarantees given to projects declined by 10.34 per cent to Rs 14,229 crore, which was attributed to a general slowdown in new projects because of the pandemic. During FY 2020-21, Exim Bank has supported 38 project export contracts valued at US$ 3.6 billion (approximately) under its commercial window. “Some major project export contracts supported by the Bank during the year include a power transmission project in Bangladesh; a solar project and installation of electrical equipment in Australia; construction of substations in Thailand.”

The slippage ratio improved by 0.42 per cent to 1.52 per cent, and Rasquinha sounded satisfied on the asset quality front, saying the bank has made considerable progress on it and will continue to improve.

The bank will take a calibrated call on borrowings during the new fiscal and is looking at raising up to Rs 36,000 crore in FY22, its Deputy Managing Director Harsha Bangari said.

She said the foreign currency borrowings will go up by USD 1 billion when compared with USD 2 billion raised in FY21.

(With input from Agencies)

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