MUMBAI: Export-Import Bank of India on Monday reported 62 per cent rise in net profit to Rs 2,518 crore in FY20, mainly helped by a sharp improvement in asset quality.
Profit in FY23 stood at Rs 1,556 crore.
Amid souring of relations with Maldives, Exim Bank said it has repaid USD 45 million to the island nation and the entire loan is performing well, the senior official said.
Managing Director Harsh Bangari told reporters here that the bank's total loan book grew by 17 per cent during the financial year and the target is to grow at least 10-12 per cent in FY2025.
When asked the reason for the lower growth target for FY25, he said the ban had a similar target for FY24 but asset growth remained higher than expected.
The bank does not feel the need to raise any equity in FY25, he said, adding that it will borrow up to US$3.5 billion in foreign currency and about Rs 35,000 crore from rupee borrowings.He said the bank has a commitment to repay US$1.2 billion in fiscal year 2025.
The commercial book grew at 49 per cent, much faster than the policy business in FY14, which helped deliver higher loan growth. The total contribution of advertisements to the overall book has now reached 56 percent of the business.
Net interest margin declined sharply to 2.06 per cent in FY24 from 2.2 per cent a year ago, attributed to the composition of assets, of which over 88 per cent are from low yielding investment grade and rates across the globe. There is also hardening of.
Bangari said an NIM of more than 1.75 per cent is good for the bank as 93 per cent of its expenses revolve around interest payments.The gross non-performing assets ratio increased to 1.93 per cent as on March 31, 2024, from 4 per cent in the year-ago period, mainly due to reduced slippages.
As a result, the total provision declined from ₹ 4,700 crore to ₹ 2,600 crore in FY23. Bangari said the governments of Ghana and Zambia paid off US$200 million in dues which also helped ease the provisions.
Asked about the Maldives experience, a senior bank official said the sanctions have a commitment of US$1.3 billion through a line of credit, of which US$450 million has been disbursed. Bangari stressed that all exposures in the Maldives are performing well.Responding to a question on Sri Lanka, which has seen turmoil in recent times, Bangari said Exim Bank is in touch with both the government and some banks in the emerald country.
“The entire debt of the Sri Lankan government is being restructured,” he said. India is participating in it. Therefore, we hope that the restructuring package will be completed.'' He said he expected the final decision this year.He said that in the new financial year, Exim Bank will also consider opening a new office in Madhya Pradesh and shifting two African offices, besides opening offices in Nepal and Latin America.
Profit in FY23 stood at Rs 1,556 crore.
Amid souring of relations with Maldives, Exim Bank said it has repaid USD 45 million to the island nation and the entire loan is performing well, the senior official said.
Managing Director Harsh Bangari told reporters here that the bank's total loan book grew by 17 per cent during the financial year and the target is to grow at least 10-12 per cent in FY2025.
When asked the reason for the lower growth target for FY25, he said the ban had a similar target for FY24 but asset growth remained higher than expected.
The bank does not feel the need to raise any equity in FY25, he said, adding that it will borrow up to US$3.5 billion in foreign currency and about Rs 35,000 crore from rupee borrowings.He said the bank has a commitment to repay US$1.2 billion in fiscal year 2025.
The commercial book grew at 49 per cent, much faster than the policy business in FY14, which helped deliver higher loan growth. The total contribution of advertisements to the overall book has now reached 56 percent of the business.
Net interest margin declined sharply to 2.06 per cent in FY24 from 2.2 per cent a year ago, attributed to the composition of assets, of which over 88 per cent are from low yielding investment grade and rates across the globe. There is also hardening of.
Bangari said an NIM of more than 1.75 per cent is good for the bank as 93 per cent of its expenses revolve around interest payments.The gross non-performing assets ratio increased to 1.93 per cent as on March 31, 2024, from 4 per cent in the year-ago period, mainly due to reduced slippages.
As a result, the total provision declined from ₹ 4,700 crore to ₹ 2,600 crore in FY23. Bangari said the governments of Ghana and Zambia paid off US$200 million in dues which also helped ease the provisions.
Asked about the Maldives experience, a senior bank official said the sanctions have a commitment of US$1.3 billion through a line of credit, of which US$450 million has been disbursed. Bangari stressed that all exposures in the Maldives are performing well.Responding to a question on Sri Lanka, which has seen turmoil in recent times, Bangari said Exim Bank is in touch with both the government and some banks in the emerald country.
“The entire debt of the Sri Lankan government is being restructured,” he said. India is participating in it. Therefore, we hope that the restructuring package will be completed.'' He said he expected the final decision this year.He said that in the new financial year, Exim Bank will also consider opening a new office in Madhya Pradesh and shifting two African offices, besides opening offices in Nepal and Latin America.
