BackExim Bank eyeing 20% growth in FY10 on back of auto revival
Exim Bank eyeing 20% growth in FY10 on back of auto revival
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Mumbai: Export-Import Bank of India targets a 20% growth in its loan assets on the back of an expected revival in the auto sector in the next financial year, a top company executive said.
“We are expecting a growth of 20% in our loan assets during FY10 on account of the expected revival in the auto sector," Exim Bank’s chairman and managing director T C Venkat Subramanian told PTI here.
The continued good export performance of engineering and pharmaceutical sectors would also help the bank clock a good performance, he said.
The growth in the bank’s loan assets during the next fiscal would be due to improvement in the export prospects of the auto and auto component sectors which are highly-efficient and resilient, he said.
“The Indian auto sector is internationally competent because of its technology, product innovation and product engineering, and so can bounce back quickly," Subramanian said.
The revival of the automotive sector would be due to improvement in the domestic market and expected stability in the international market in a few months, he said.
"The domestic market is growing as interest rates are declining and people are buying vehicles. Once international market conditions stabilize, companies will start outsourcing to India which will help the sector,“ he said.
The bank, during FY09, is targeting a growth of 15% in loan assets at Rs38,000 crore compared to 24% in last fiscal (FY 07-08) at Rs32,000 crore loan assets, he said.
“Due to slump in exports and current downturn in the international market which has forced companies to go slow on their expansion plans, and a slowdown in overseas acquisitions by Indian companies, we expect a growth of 15% in our loan assets at Rs38,000-crore this fiscal," Subramanian said.
Engineering and pharmaceuticals are two sectors where the bank is experiencing growth during this fiscal, he said.
“In engineering, we are seeing a growth of 15% as the country’s exports in the sector is also growing at 30-40%. Our pharmaceuticals segment is also doing well with a 15-20% growth rate," he said.
Auto, textile and leather are a few sectors where the bank is witnessing less growth, he said.
The bank, which has nine offices in the country and six internationally, is planning to open a new office in Chandigarh in April, he said.
Exim bank already has two offices in Africa and one each in Europe, the US, Dubai and Singapore.
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