investor pres

Presentation

2

Key Investment Highlights

Indias Engine for Growth of

International Trade

Strong Standalone Financial Strength and

Prudent Risk Management

India: An Emerging Economic Powerhouse

India: Sound External Sector

Policy Role in Indias Export Development

EXIM: Proxy to Sovereign

# 5

# 1

# 3 # 4

# 2

3


Worlds 10th largest economy based on nominal GDP in 2013 (1)

Nominal GDP for FY 14 (2) : ~USD 1.9 tn(3)

Favorable demographic profile: 64.8% of the population is between the age of 15 to 59 years (4)

Consumption demand which is driven by basic consumption remained strong despite of rising prices and interest rates (5)

Healthy forex reserves

Mood of optimism, positive sentiment

Resilient GDP Growth (1)

1,365

1,709 1,880 1,859 1,878

8.6%

8.9%

6.7%

4.5%4.7%

3%

4%

5%

6%

7%

8%

9%

10%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

FY10 FY11 FY12 FY13 FY14

Rea

l GD

P G

row

th (%

)

No

min

al G

DP

(US$

bn

)

Nominal GDP (US$ Billion)

Source: (1) IMF World Economic Outlook Database (October 2014). (2) Central Statistical Organisation (CSO), RBI, Ministry of Finance, IIF. FY represents year ended 31 March (3) IIF Estimates (4) United Nations Department of Economic and Social Affairs World Population Prospects: The 2012 Revision (5) Government of India Press Note: Provisional Estimates of National Income, Consumption Expenditure, Saving and

Capital Formation, 2013-14.

4

Indian Economy: Key Economic Indicators

Key Parameters FY2009 FY2014 Change

Nominal GDP (USD bn)1 1224.1 1877.5 53.4%

CPI-IW Inflation rate (annual avg. %)3 9.0 9.7 0.7%*

Exports (USD bn)4 185.3 314. 4 69.7%

General Government Debt (% of GDP)1 72.2 64.9 10.1%

Foreign exchange reserves (USD bn)5, 6 252.0 304.2 20.7%

Direct investment to India (USD bn)5 41.9 36.0 14.1%

Total External Debt (USD bn) 5 224.5 442. 2 97. 0%

Gross National Saving (% of GDP)1 32.0 28.2 11.9%

Gross Domestic Investment (% of GDP)1 34.3 30.0 12.5%

Equity Market Capitalization (USD bn) 602.4 1215.4 101.8%

Exchange Rate (`/US$, avg.)3 45.9 60.5 31.8%

* - difference SOURCE: 1. IIF 2. Office of the Economic Adviser (OEA), Ministry of Commerce and Industry 3. Economic Survey 2013-14 4. Ministry of Statistics and Programme Implementation, Ministry of Commerce and Industry 5. Reserve Bank of India 6. Data as at End-March

5


Trend of Merchandise Trade Increasing Forex Reserves Trend of Services Trade

Foreign trade (exports + imports) as percentage of GDP have increased from 34.2% in FY10 to 40.7% in FY14 India achieved the 6th rank in export of services worldwide and emerged as the 19th biggest merchandise

exporter in 2013, according to WTO Forex reserves increased in the last 5 years, with an import cover of over 8 months as on March 2014

Source: Ministry of Commerce and Industry, RBI, CSO, IIF, WTO

178.8

251.1

306 300.4 31 288.4

369.8

489.3 490.7450.

0

50

100

150

200

250

300

350

400

450

500

FY

10

FY

11

FY

12

FY

13

FY

14

(US

$b

n)

Exports Imports

279.1304.8 294.4 292.0

304.2

0

50

100

150

200

250

300

350

FY

10

FY

11

FY

12

FY

13

FY

14

(US

$b

n)

Total Forex Reserves (Year End)

96

124.6

142.3 145.7151.5

6080.6 78.2 80.8 78.5

0

50

100

150

200

FY

10

FY

11

FY

12

FY

13

FY

14

(US

$b

n)

Exports Imports

6

India: Trade and Current Account Balance

Indias Import Pattern

Source: Ministry of Commerce and Industry

96.0 120.1

156.9 160.0 151. 7 6.8

7.1

11.4 9.1 6.5

13.8

14.6

20.2 22.8 20.9

16.3

34.6

28.2 22.7 24.0

29.8

42.6

61.6 55.8

33.2 87.1

106.0

155.0 164.0

164.8

38.6

44.8

56.0 56.3

49.1

0.0

100.0

200.0

300.0

400.0

500.0

600.0


US$

bill

ion

Capital Goods Petroleum and crude products Gold & silver

Pearls, precious and semiprecious stones Agricultural commodities Fertilizers

Other commodities

288.4

369.8

489.3 490.7

450.2

7

India: Trade and Current Account Balance

Source: MOSPI; RBI

INDICATORS (US$ bn) FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

Exports 185.3 178.8 251.1 306.0 300.4 314.4

% change 13.6 -3.5 40.5 21.8 -1.8 4.7

Imports 303.7 288.4 369.8 489.3 490.7 450.2

% change 20.7 -5.1 28.2 32.3 0.3 -8.3

Oil Imports 93.7 87.1 106.0 155.0 164.0 164.8

% change 17.4 -7.0 21.6 46.2 5.9 0.4

Non-oil Imports 210.0 201.2 263.8 334.3 326.7 285.4

% change 22.2 -4.2 31.1 26.7 -2.3 -12.6

Trade Balance -118.4 -109.6 -118.7 -183.3 -190.3 -135.8

Services Exports 106.0 96.0 124.6 142.3 145.7 151.5

Software Exports 46.3 49.7 53.1 62.2 65.9 69.5

Services Imports 52.0 60.0 80.6 78.2 80.8 78.5

Services Balance 54.0 36.0 44.0 64.1 64.9 73.0

Current Account Balance -28.7 -38.4 -47.9 -78.2 -87.8 -32.4

CAB as percentage of GDP (%) -2.3 -2.8 -2.8 -4.2 -4.8 -1.7

8

India: External Debt vis--vis External Reserves

Year Ended March 31

Figures in US$ billion 2009 2010 2011 2012 2013 2014

Category of External Debt

Multilateral 39.54 42.86 48.48 50.45 51.58 53.30

Bilateral 20.61 22.59 25.71 26.88 25.17 24.80

International Monetary Fund 1.02 6.04 6.31 6.16 5.96 6.20

Trade Credit 14.48 16.84 18.61 18.99 17.76 15.30

Commercial Borrowings 62.46 70.73 88.48 120.14 140.2 146.50

Non Resident 41.55 47.89 51.68 58.60 70.88 103.80

Other 1.53 1.66 1.60 1.35 1.25 1.50

Short Term 43.31 52.33 64.99 78.18 96.69 89.20

Total 224.50 260.93 305.86 360.76 409.40 440.60

Category of External Reserves

Foreign Currency Assets 241.43 254.69 274.33 260.07 259.73 276.36

Gold 9.58 17.99 22.97 27.02 25.69 21.56

SDRs / Reserve Tranche 0.98 6.38 7.52 7.31 6.63 6.96

Total 251.99 279.06 304.82 294.39 292.05 304.22

External Reserves : External Debt 112% 107% 100% 82% 71% 69%

FC Assets : External Debt 108% 98% 90% 72% 63% 63%

Source: Reserve Bank of India; Ministry of Finance, GOI

9

Objectives & Vision

for providing financial assistance to exporters and importers, and for functioning as the principal financial

institution for coordinating the working of institutions engaged in financing export and import of goods and

services with a view to promoting the countrys international trade

shall act on business principles with due regard to public interest

(Export-Import Bank of India Act, 1981)

To develop commercially viable relationships with a target set of externally oriented companies by

offering them a comprehensive range of products and services, aimed at enhancing their

internationalisation efforts

Objectives

Vision

10

Strong Quasi Sovereign

100% owned by Government of India (GoI);

Proxy to the India Sovereign in international debt markets

Cannot be liquidated without GoI approval

Board of Directors is appointed by GoI; comprises top officials from key GoI ministries (Commerce & Industry, Finance and External Affairs) and RBI

Absolute independence in its business and operational policies.

Guarantees provided by GOI for lines of credit extended by EXIM which are on behalf of and supported by the GOI.

A track record of GoI capital infusions.

Ongoing Government Support

100% owned by GoI

Directors Appointed by

GoI

Proxy to India Sovereign in International Debt Markets

Regular Equity Capital

Infusion

Guarantees on GoI Routed

Lines of Credit

Source: Preliminary Offering Circular

11

EXIMs Major Programmes

Export Credit Finance for Export Capability Creation

Products

Services

Suppliers/Buyers Credit

Pre-Shipment Credit

Post-Shipment Credit

Lines of Credit

Guarantees & L/Cs

Buyers Credit under NEIA

Term Loans

Export Facilitation

Guarantees & L/Cs

Working Capital

Export Marketing

Overseas Investment Finance

Import Finance

Projects

Export Finance 52%

Overseas Investment

Finance 19%

Term Loan to Exporters

21%

Export Facilitation

1%

Working Capital Loan for

Exporters 2%

Import Finance 5%

Others 0.3%

Funded Portfolio as on March 31, 2014

Advance Payment Guarantee

12%

Financial Guarantee 19%

Performance Guarantee

24% Retention Money

Guarantee 2%

Bid Bond Guarantee 0.1%

Stand By Letters of Credit 39%

Letters of Credit 4%

Non-Funded Portfolio as on March 31, 2014

12

Financial Highlights

(Figures in million) 2012 [`] 2013 [`] 2014 [`]

Total Assets 636,730 761,182 871,490

Loans and Advances(1) 538,898 643,530 745,983

Equity 60,003 72,390 83,097

Net Income before Provisions and Taxes 14,926 17,038 24,099

Net Income 6,751 7,423 7,098

Gross NPA 1.46% 2.31% 2.10%

Net NPA 0.29% 0.47% 0.43%

ROAA 1.14% 1.05% 0.86%

ROAE 12.02% 11.21% 9.13%

Net Interest Margin 2.17% 2.14% 2.28%(2)

CRAR 16.44% 15.28% 14.32%

Equity / Assets 9.42% 9.51% 9.54%

Year ended March 31

Note:(1)Includes loans and advances to industrial concerns, scheduled banks foreign governments and other financial institutions and bills of exchange and promissory notes discounted/rediscounted. Amounts stated are net of provisions for non-performing loans (NPLs).

(2) Excluding prior period income

13

Exim Banks sovereign status allows the Bank to raise wholesale funds at benchmark rates

Variety of Borrowing instruments, Market timing and active liability management

Asset Liability Gaps Total Resources/ Loan Assets as on March 2014

Asset Liability Management

Total Liabilities

Share Capital and Reserves

10%

FC Lendable Resources

65%

INR Lendable Resources

25%

Total Lendable Resources

Total Assets

Rupee Assets 35% Foreign

Currency Assets 65%

14

Strong Financial and Capital Position

Steady Profitability Strong Capital Position

5135 5836

6751 7423

7097

1.78%

2.01%

2.17% 2.14%

2.28%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

0

1000

2000

3000

4000

5000

6000

7000

8000


Net PROFIT NIM

Rs.

Mn

*NIM for FY14 is excluding prior period income

47,438 53,464

60,213 66,313

73,531

5,734 6,859 7,709 7,597 8,863

18.99%

17.04% 16.44%

15.28% 14.32%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Tier I Capital

Tier II Capital

CRAR %

15

Growth Coupled with Diversification

Aggregate Country Exposure as of Mar 2014

Note: (1) Total credit exposure refers to outstanding loans and guarantees plus unutilised loans & guarantee sanctions to customers (excluding banks / institutions)

Industry exposure limit set at 15%

Total Credit Exposure by Industry as of Mar 2014 (1)

Ferrous metals & Metal

processing 11%

EPC Services 9%

Textiles and Garments

8%

Oil and Gas 7%

Drugs & Pharmaceuticals

6%

Petroleum products 5%

Auto & auto components

5%

Renewable energy 4%

Chemicals and Dyes 4%

Miscellaneous 4%

Non-ferrous Metals & Metal processing

3%

Ship building 3%

Mining and Minerals 3%

Construction 3%

Shipping Services 2%

Agro & Food Processing

2%

Others 23%

Americas 6% Europe

8% SEA FE & PAC

8%

East Asia 0.15%

West Asia 5%

South Asia 24%

East & Southern Africa 25%

North Africa 6%

West Africa 18%

16

Efficiency and Stable Asset Quality Position

Gross Non Performing Loans (1)

Loan Loss Coverage

Note: (1) Excludes restructured standard assets

Net Non Performing Loans (1)

Equity at Risk

782 923

1,558

3,0 7 3,210

0.20% 0.20% 0.29% 0.47% 0.43%

0%

1%

2%

3%

4%

-

500

1,000

1,500

2,000

2,500

3,000

3,500


(Rs.

mm

)

Net NPLs Net NPL ratio

4,132 4,780

7,958

15,147 15,960

1.05% 1.04%

1.46%

2.31% 2.10%

0%

1%

2%

3%

4%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000


(Rs.

mm

)

Gross NPLs Gross NPL ratio

81.07% 80.55% 80.42% 79.87% 79.88%

75%

77%

79%

81%

83%

85%


Pr

ov

isio

ns

fo

r

NP

Ls

/G

ro

ss

NP

Ls

(%

)

1.73% 1.78%2.60%

4.21% 3.86%

0%1%2%3%4%5%6%7%8%


Ne

t N

PL

s/

Eq

uit

y

Ca

pit

al

& R

es

er

ve

s

NP

Ls

(%

)

17

Key Investment Highlights

Indias Engine for Growth of

International Trade

Strong Standalone Financial Strength and

Prudent Risk Management



Policy Role in Indias Export Development

EXIM: Proxy to Sovereign

# 5

# 1

# 3 # 4

# 2

18

Thank You

investor pres

Documents

india usd bn5

nominal gdp usd bn1

fy14 india

ministry of commerce

percentage of gdp

bnnominal gdp us

economic survey

bnexports imports6 india