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This move will allow us to play more aggressively in both pre-shipment and post-shipment credit.

MUMBAI, April 30

EXIM Bank of India has received approvals from the Reserve Bank of India and the Government to raise foreign currency borrowings out of FCNR(B) funds of commercial banks, said Mr T.C. Venkat Subramanian, Managing Director, Exim Bank.

"This move will allow us to play more aggressively in both pre-shipment and post-shipment credit. During the year, 2001-02, borrowings out of the FCNR (B) funds amounted to $36 million,'' said Mr Subramanian.

He added that the RBI measure would give the bank the leeway to borrow up to even half-a-billion dollars if the need arises.

Meanwhile, the bank has issued eight per cent, 20-year convertible bonds in favour of the Government on the transfer of outstanding RBI-NIC, LTO fund loan, which would qualify for Tier I capital of the bank.

Addressing a press conference here on Tuesday, Mr Subramanian said that the funds of around Rs 535 crore had been transferred to the Government's books from those of the RBI's.

Since the loan was eligible for Tier I, the bank's capital to risk assets ratio shot up to 33.13 per cent as on March 31, 2002 as against 23 per cent in the previous year.

For the year-ended March 31, 2002, profit after tax grew by 11 per cent to Rs 171 crore as compared to Rs 154 crore during the previous year.

A dividend of Rs 42 crore has been paid to the Government.

Loan sanctions amounted to Rs 4,241 crore as compared to Rs 2,174 crore in the previous year while disbursements aggregated Rs 3,453 crore during 2001-02 as compared to Rs 1,896 crore during the previous year.

The bank has extended lines of credit amounting to $95 million to countries in Latin America, Russia and Central America.

Paid-up capital of the bank increased by Rs 100 crore and stood at Rs 650 crore.

Net worth of the bank increased to Rs 1,853 crore as on March 31, 2002 as compared to Rs 1,616 crore during the previous year.

The bank's net NPA as a percentage of net loans stood at 7.38 per cent as at end March 2002.

In December 2001, the bank put in place an "Agri Business Cell'' which would examine viable projects and export transactions in the agriculture sector.

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Foreign currency borrowings -- Exim Bank can tap FCNR(B) funds of commercial banks

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