State-owned EXIM Bank is in the process of appointing a ‘strategic consultant’ to relook at its entire business strategy. The bank also plans to raise around USD two billion during the current year, Export-Import Bank of India, managing director, a David Rasquinha said on Monday.
“Right now, we are in the process of engaging a strategic consultant. Because we feel that we have been in operation for more than three decades. We were set up in 1981 and the conditions then were different,” he said here.
Rasquinha was talking to reporters on the sidelines of a Business Outreach Programme on India’s Line of Credit and Solar Projects’ organised by Economic Diplomacy and States division, External Affairs Ministry and EXIM Bank.
On the proposal to appoint a “strategic” consultant, Rasquinha said, “when we set up business, it was a different kind of situation at that time. Now, we are in 2019. The economy has changed. We are engaging a consultant all together to relook at the entire thing in the last three decades. How EXIM Bank performed? Have we met the expectations of the Government of India? what we have done right? What we have not done which we should have been done? What should be looked at going forward. The appointment of consultant was likely to take place by end of this month.”
On fund raising plans, he said, “the bank raised USD one billion in January 2018. We may look at bond market before March 31 or more likely after that date when our annual results have come in. Typically, on an average we raise between USD one to 3 billion. Perhaps, we will be looking at USD 2 billion in 2019.”
To a query on strengthening presence overseas, he replied in the affirmative saying that the bank may look at opening branches in neighbouring countries in a year or two. I will be first inclined to see where I am having higher exposure. To me Sri Lanka is an area where I like to open an office, not immediately. Perhaps, in a year or two we will be looking at an office. Then I believe we will be having offices in SAARC countries.
To a query on capital infusion from the central government, he said Finance Minister Piyush Goyal while presenting the budget estimates had announced provision of Rs 6,000 crore for the bank. We hope it will be passed in Parliament shortly. In the first phase it will be Rs 4,500 crore in 2018-19 and Rs 1,500 crore for 2019-20.