Export financier Exim Bank recorded a 62 percent growth in net profit for the year ending March 2024 as it could control bad loans. The lender is planning to raise over Rs 60,000 crore in FY’2024-25 from the domestic market in addition to $3-3.5 billion from the overseas market.
Its net profit amounted to Rs 2518 crore as of march 2024, up from Rs 1556 crore in the same period a year ago. While its operating profits rose only 4.2 percent to Rs 3750 crore.
Exim’s net interest income (NII) increased by 4.6% to Rs 3,540 crore for the FY2023-24, primarily on account of higher increase in interest income from loans and advances.
In terms of the non-performing assets (NPAs), the Gross NPAs declined significantly from 4.09% as on March 31, 2023 to 1.93% as on March 31, 2024, “ we had very few incremental NPAs” said the bank’s managing director Harsha Bangari ” Even the incremental NPAs’ were reduced. We have a provision coverage ratio of 97 percent”.
The bank will raise a mix of rupee and dollar resources from the market in Fy’2024, Ms Bangari said. In addition,the bank is expected to $3 billion to $3.5 billion in FY’2024-25.
Since the bank is comfortably placed with respect to capital with capital adequacy ratio of 21.2 percent, Exim may not need any capital support from the government.
The bank’s loan portfolio grew by 17% in FY2023-24, driven by strong growth in sectors such as clean and renewable energy, automotive, engineering goods, pharmaceuticals, and telecommunications.
Exim is looking at 10 to 12 percent growth in its business is FY’2024-25, but a lot would depend on the external environment Ms Banagari said.
