Export Import Bank of India (Exim Bank) is hopeful of recovering over ₹640 crore from two big accounts that have gone to National Company Law Tribunal during the current quarter, said a top official.
“We are hopeful of recovering ₹240 crore from Bhushan Power and Steel and ₹400 crore from Essar Steel this quarter,” said David Rasquinha, managing director, Exim Bank. “Apart from these two accounts, there are several firms owing us money. But they are small.”
Recently, Exim Bank was successful in recovering its dues from Binani Cement. The bank had an exposure of about ₹480 crore to roads projects of overseas subsidiaries of the crisis-hit IL&FS in Ethiopia, Botswana and Spain, he said.
“If IL&FS sells its stake in the road project companies, then Exim Bank’s exposure in the form of guarantee will come down,” he said.
Queried on the capital infusion of ₹6,000 crore by the Centre in two tranches, he said the bank was hopeful of getting ₹4,500 crore during 2018-19 by way of recapitalisation bonds and ₹1,500 crore during 2019-20.
“The second tranche will come in two modes – ₹950 crore in cash and ₹550 crore by way of recapitalisation bonds. We will also raise about $2 billion through a bond issue,” he said.
According to him, the bank is on track to hit the net profit target of ₹140 crore this fiscal.
Going forward, Exim Bank would promote development of solar projects and provide associated finance. The bank had extended a line of credit totalling $226 million for financing 16 solar power projects.
