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Export-Import (Exim) Bank of India sees stress on asset quality to continue during this fiscal.
The Government-owned bank expects its non-performing assets (NPA) to be slightly higher this fiscal, as compared to last year.
“Asset quality stress has not peaked as yet. We are likely to add some more (accounts slipping into NPS) this year. However, starting next year, the stress on asset quality should be largely out,” David Rasquinha, Executive Director of Exim Bank said.
Rasquinha was talking to newspersons after an interactive session on ‘Financing options for project exports’ here on Friday.
As on March 31, 2013, Exim Bank’s net NPA grew to 0.47 per cent as against 0.29 per cent as in FY12.
Its restructured account portfolio stood at Rs 3,000 crore last fiscal. Exim Bank is likely to restructure some more accounts this fiscal.
With asset quality continuing to be under stress, Exim Bank will look at reorienting its projects, step up recovery and if need be tinker with interest rates to maintain its profitability, he said.
Exim Bank is eyeing 15-20 per cent growth in its loan portfolio this fiscal. Its loan book grew by 20 per cent to Rs 66,000 crore in 2012-13.
Rasquinha said the growth in loan book will come from two segments – lines of credit and long-term buyer’s credit.
“We grew by 20 per cent last year. It is still too early to comment on the growth rate this year, however, we expect 15-20 per cent growth in loan book,” he said.
Exim Bank was laying emphasis on pushing sustainable exports, particularly in the projects sector. Sri Lanka, Bangladesh, Ethiopia, Nepal and Mozambique were some of the major markets for project exports for Exim Bank, he said.
Exim Bank will shortly open an office in Myanmar, he added.
shobha.roy@thehindu.co.in
Source: thehindubusinessline
The Government-owned bank expects its non-performing assets (NPA) to be slightly higher this fiscal, as compared to last year.
“Asset quality stress has not peaked as yet. We are likely to add some more (accounts slipping into NPS) this year. However, starting next year, the stress on asset quality should be largely out,” David Rasquinha, Executive Director of Exim Bank said.
Rasquinha was talking to newspersons after an interactive session on ‘Financing options for project exports’ here on Friday.
As on March 31, 2013, Exim Bank’s net NPA grew to 0.47 per cent as against 0.29 per cent as in FY12.
Its restructured account portfolio stood at Rs 3,000 crore last fiscal. Exim Bank is likely to restructure some more accounts this fiscal.
With asset quality continuing to be under stress, Exim Bank will look at reorienting its projects, step up recovery and if need be tinker with interest rates to maintain its profitability, he said.
Exim Bank is eyeing 15-20 per cent growth in its loan portfolio this fiscal. Its loan book grew by 20 per cent to Rs 66,000 crore in 2012-13.
Rasquinha said the growth in loan book will come from two segments – lines of credit and long-term buyer’s credit.
“We grew by 20 per cent last year. It is still too early to comment on the growth rate this year, however, we expect 15-20 per cent growth in loan book,” he said.
Exim Bank was laying emphasis on pushing sustainable exports, particularly in the projects sector. Sri Lanka, Bangladesh, Ethiopia, Nepal and Mozambique were some of the major markets for project exports for Exim Bank, he said.
Exim Bank will shortly open an office in Myanmar, he added.
shobha.roy@thehindu.co.in
Source: thehindubusinessline
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