BANK DECLARES ANNUAL RESULTS FOR 2004-05

Net Profit (after tax) increases by 13 %

Loan Sanctions increase by 71 %
Disbursements increase by 64%, exceed Rs. 11400 crore
Loan Portfolio Growth 24%
Total Assets exceed Rs. 18000 crore

Export-Import Bank of India (Exim Bank)'s Chairman & Managing Director, Shri T.C. Venkat Subramanian,
announced the Bank's results for the year 2004-05 at a press conference in Mumbai on Monday, April 25,
2005.

FINANCIAL PERFORMANCE

• Profit After Tax amounted to Rs. 258 crore as compared to Rs. 229 crore during the
previous year, registering a growth of 13 %.

• Rs. 65.44 crore will be paid to the Central Government as dividend, as compared to Rs. 47
crore in 2003-04. This works out to a pay out of 25 % of the post-tax profit of the Bank for
the year 2004-05.

• Capital adequacy (Capital to Risk Assets Ratio) stood at 21.58 %.

BUSINESS PERFORMANCE

• Loan sanctions aggregated Rs. 15853 crore as compared to Rs. 9266 crore in the previous
year, an increase of 71%. Disbursements aggregated Rs. 11435 crore during 2004-05, as
compared to Rs. 6957 crore during the previous year, an increase of 64%. Loan Assets
increased by 24% moving upwards to Rs.13410 crore as on March 31, 2005 from Rs.
10775 crore as on March 31, 2004.

• Net NPAs/Net Loan Assets stood at 0.85% showing improvement from 1.26% in the
previous year. Cumulative provisions cover over 82 % of Gross NPAs.

• During the year, Bank extended 16 lines of credit amounting to US$ 423 million. As on
March 31, 2005, the Bank has 44 Lines of Credit (LOC) with credit commitments
aggregating US$ 953 mn available for utilisation, covering 68 countries in Asia, Africa, CIS
and Latin America. LOC facility seeks to finance export of goods, services and projects from
India, and from SME sector, in particular.

• During the year, 570 export contracts worth Rs. 7945 crore covering 64 countries were
secured by 198 Indian exporters with Exim Bank's support, as against 164 contracts worth
Rs. 7543 crore covering 48 countries secured by 96 Indian exporters during the previous
year.

• Bank sanctioned and issued guarantees aggregating Rs. 1589 crore and Rs. 1660 crore
 respectively.

• Net profit per employee for the year 2004-05 was Rs. 1.34 crore.

RESOURCES/TREASURY

• Market borrowings as on March 31, 2005 constituted 80% of the total resources.

• During the year, Government of India subscribed to the share capital of the Bank to the tune
of Rs. 200 crore. Bank's paid-up capital increased to Rs. 850 crore as on March 31, 2005.

• The Bank raised Rs. 955 crore by way of bonds at benchmark rates for tenors varying from
1 to 3 years and Rs. 525 crore by way of loans from banks.

• The Bank raised Rs. 1705 crore (face value) by way of commercial paper at finest rates for
1 to 12 month tenors.

• The Bank's debt instruments continued to enjoy the highest rating from CRISIL and ICRA,
viz. "AAA" and "LAAA" for bonds and "P1+" and "A1+" for short-term instruments. As on
March 31, 2005, outstanding rupee borrowings including bonds, loans and commercial
paper amounted to Rs. 9318 crore.

• Bank has in place, ratings for its overseas bond issue, from International Credit Rating
Agencies, Moodys (Baa3), Fitch (BB+) and S&P (BB+), on par with the sovereign rating.

• Exim Bank raised US$ 250 million by way of debut Eurodollar bond issue and US$ 50
million equivalent by way of Euroyen Floating Rate Notes (FRN) issue, the first of its kind in
the recent past by an Indian issuer.

• Short term US$ resources amounting to US$ 200 million were raised for financing pre-cum-
post shipment credit requirements of export-oriented units.

• Outstanding foreign currency resources were in the order of US$ 1.4 billion.

NEW INITIATIVES

• Financing of Services Sector

o The Bank extended loans to three companies in the entertainment industry,

engaged in film production. All the three Hindi films financed by the Bank, which
were released during the year, proved to be box office hits, both in India and
abroad, earning foreign exchange in excess of US$ 8 million, excluding revenues
from the sale of DVD/VCD/Cable rights in the overseas market.

• Small and Medium Enterprises Group

o With its emphasis on Small and Medium Enterprise (SME) exporters, the Bank has
taken the initiative to set up an SME Group to address this sector in a focussed
 manner. The primary objective of the Group is to develop a portfolio of externally
oriented SME and to ensure smooth credit delivery to these clients.

o Bank's support to the SME sector included term loans for setting up of new
projects, modernisation, expansion & equipment finance and export credit by way
of pre-shipment/post-shipment credit including working capital term loans. During
the year, SMEs covering a wide range of sectors such as textiles, readymade
garments, chemicals, information technology, pharmaceuticals, auto components
and engineering goods have been extended credit by the Bank. During the year,
Bank sanctioned credit facilities amounting to Rs. 133.50 crore to export oriented
SMEs under the new initiative.

o A MOU was signed to evidence the co-operation between the Bank and
International Trade Centre (ITC), Geneva, to implement the Enterprise
Management Development Services programme of ITC for supporting Small and
Medium Enterprises in their globalisation efforts.

• Overseas Investment Finance Programme

o The Bank has a comprehensive programme in terms of equity finance, loans,

guarantees and advisory services to support Indian outward investment. In select
cases, the Bank takes an equity position alongwith the Indian promoter. Overseas
investments financed by Exim Bank during the year include acquisitions of a
stainless steel plant in Indonesia; a BPO services company in the USA; a
pharmaceuticals company in Denmark; an engineering company manufacturing
transformers, headquartered in Belgium, with factories in five countries; an auto
ancillaries unit in the USA, with both loan and equity support. Finance was also
provided for setting up a consumer durables dealer network in the UK as also
funded/ non-funded assistance by way of working capital for joint ventures in the
pharmaceuticals sector in Brazil, USA and Mexico.

• Agri Business Group

o Bank's support to the agri sector included term finance for the food processing,
floriculture, fruits and vegetables and contract farming sectors. Pre-shipment/post-
shipment credit was also extended to finance export of a wide range of agro-based
products. To highlight the untapped potential of this sector, the Bank brought out an
Occasional Paper on 'Fresh Fruits, Vegetables and Dairy Products: India's Potential
for Exports to Other Asian Countries'.

o An export credit line of US$ 15 million extended to the Government of Senegal

focusses on export of agricultural machinery and equipment and food processing
technology from India for the development of rural SMEs in Senegal.

• Investment in Development Bank of Zambia and West African Development Bank (BOAD)

o Exim Bank has taken up equity in Development Bank of Zambia, a Development

 Finance Institution which has been restructured and assigned to play a pivotal role
in promoting Zambia's economic development, and West African Development
Bank (BOAD), headquartered in Lome, capital of Togo in West Africa, which
operates in eight French speaking African countries. Exim Bank of India is the first
non-regional and non-European institution to be admitted as a shareholder of
BOAD.

• Publication on Food Processing Technologies

o The Bank has an MOU with Central Food Technological Research Institute (CFTRI)
to promote small-scale food processing projects in Africa and CIS region. During
the year, Bank brought out a publication titled 'Market Maker: Technology aided
Business Solutions' containing project profiles in the food processing sector based
on CFTRI technologies.

PLANNING & RESEARCH

• Six Occasional Papers (OPs) were published by the Bank during the year: The OPs
discussed issues and prospects related to plantations, horticulture and biotechnology, trade
and investment potential covering ASEAN region as also macro-economic issues such as
productivity and intra-industry trade.

• During the year, Bank also published four working papers: Two of the papers highlighted the
export potential of the Indian textile industry and the ceramic industry. The other two
focussed on the trade and investment potential between India and South African Customs
Union (SACU), and Central Asian Republics.

• Bank also brought out a book titled "Business with Latin America" during the year

CONSULTANCY SUPPORT PROGRAMME

• Bank has an arrangement for sponsoring and part-financing Indian consultants for providing
consultancy services to private sector SMEs in developing countries under Technical
Assistance Programme of International Finance Corporation (IFC), Washington D.C. and
other international agencies. The facilities in operation include Africa, CIS, China, and South
Asia. As on March 31, 2005, Bank has supported 79 consultancy assignments by Indian
consultants in 30 countries covering sectors such as agro processing, stone washing,
leather goods, financial accounting, auto parts, gems and jewellery, pharmaceuticals,
software, power. During the year, services of Indian consultants were utilised in sectors like
agriculture, horticulture, and food processing.

ADFIAP AWARDS

• The Association of Development Financing Institutions in Asia and the Pacific (ADFIAP)
Development Award recognises and honours ADFIAP member institutions, which have
assisted projects that have created a developmental impact in their respective countries.
Awards are given to member institutions, which have implemented or enhanced outstanding
 and innovative development projects during the year.

• The Bank has been conferred with the 2005 'Trade Development Award.' The Award is in
recognition of the Bank's Export Marketing Services programme that proactively creates the
enabling environment for Indian firms to explore newer geographies leveraging upon the
Bank's extensive institutional and trade linkages, its reach, access and credibility to serve
as the marketing arm of select Indian companies effectively utilising the Bank's overseas
offices. The Bank had been conferred with this award in the years 2002 and 2004 also.

• The ADFIAP Awards Board, this year, has also bestowed upon the Chairman and Managing
Director of Exim Bank, a special 'Plaque of Merit' in recognition of his leadership role in
moulding the Bank into a dynamic and innovative organization, contributing to India's trade
with the world.

For further information, please contact:

Shri S. Srinivas,
Deputy General Manager,
Export-Import Bank of India,
Centre One Building, World Trade Centre Complex,
Floor 21, Cuffe Parade,
Mumbai 400 005.
Tel. 22185272 Extn.2232 Fax: 22182572 ;
E-mail: eximcord@vsnl.com

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