India Exim Bank is eyeing a foreign currency borrowing of around $3-3.5 billion in 2024-25. The bank is hoping for a credit growth of more than 10-12 per cent during the ongoing fiscal despite geopolitical concerns.

The bank has maintained a positive outlook on exports with its research wing estimating a 12.4 per cent growth in total merchandise exports in the April-June quarter.

The bank’s managing director and CEO Harsha Bangari on Monday said there is no plan for a capital infusion from the government in the current year, but the bank will look at market borrowings.

“In 2024-25, foreign currency borrowings could be to the tune of $3-3.5 billion,” Bangari said.

The bank had raised resources aggregating ₹74,768 crore, including foreign currency resources of $3.26 billion equivalent during 2023‑24. The bank’s capital-to-risk assets ratio was 21.18 per cent in 2023-24 against 25.43 per cent in 2022-23.

India Exim Bank sanctioned fresh loans aggregating ₹1,06,312 crore in 2023-24 with the loan portfolio growing 17 per cent, driven by sectors such as clean and renewable energy, automotive, engineering goods, pharmaceuticals and telecommunications.

“This year (FY24) we registered a growth of around 17 per cent. The year before growth was also similar. I would see a target of 10-12 per cent as something that we look forward to having (in FY25),” she said. The bank has recorded a net profit of ₹2,518 crore in 2023-24, up 61.83 per cent from ₹1,556 crore in 2022-23.

“Positive growth in India’s exports could be as a result of India’s strong GDP growth fundamentals and outlook, sustained momentum in the manufacturing and services sectors, backed by an expected global easing of monetary tightening spurring global demand, and to some extent due to base effect,” a statement from the bank said.