“On the whole we would require $2 billion for FY22. We may tap the bond market in January again subject to favourable market conditions,” Bangari added. The export credit agency is looking at raising $1 billion.
Exim borrows $2-3 billion annually on average. The exact quantum would depend on demand. “We have already borrowed around $1 billion, mostly on the bilateral market,” Bangari says. Bilateral market borrowing gives the borrower an advantage of 15-20 basis points over bonds in terms of pricing. Exim has factored in a loan book growth of 8-10 per cent for FY22, higher than its earlier forecast of 5-7 per cent made in May 2021.
“A stable outlook gives us a lot of comfort. I hope investor appetite gets much better. We are getting a pricing that is given to a higher rated entity. Besides, Exim would also be borrowing Rs 15,000-20,000 crore from the domestic market.”
Exim Bank is also seeing some improvement in the asset quality. “It is much better than the last two-three years. There are a few accounts that have slipped and are very much in the bank’s radar,” Bangari says. As part of a consortium, the bank has identified nine accounts worth Rs 700-800 crore to be transferred to the National Asset Reconstruction Company (NARCL).
Exim Bank’s slippage ratio improved to 1.52 per cent in FY21 from 1.94 per cent in FY20. Net NPA stood at 0.51 per cent from 1.77 per cent in FY20. Bangari says the provision coverage ratio was at over 95% last year & will be higher this fiscal.
It has received a capital support of Rs 750 crore from the government of India so far, against the budgeted amount of Rs 15,00 crore.
