Exim Bank of India aims for a 10% rise in loan portfolio during the fiscal year 2026-27 due to the current uncertainties in West Asia. According to Harsha Bangari, MD & CEO of Exim Bank, an export finance bank of India, the target for the loan portfolio rise will be achieved in the new financial year through fixed foreign exchange.
The previous year, that is, 2025-26, Exim Bank achieved 12% growth in loans. However, the achievement was both positively and negatively influenced by foreign exchange volatility, which reduced their growth rate by 5%. According to Harsha Bangari, 58% of the total loan portfolio of Exim Bank is denominated in foreign currency. Given the continued financial demand from exporters, the bank expects the share of rupee loans to increase further in the future.
Most of Exim Bank's loans are for medium to long terms, which are not immediately impacted by the ongoing geopolitical tensions in regions like West Asia. The bank's exposure to the West Asia region is very low, and currently, no adverse impact on loan repayments has been observed. However, if the crisis prolongs, exporters' margins may be pressured due to supply chain disruptions. In such a situation, exporters may turn to the domestic market for revenue expansion, and the bank's incremental credit growth may be partially impacted by the halt in projects in the region.
Indian companies have strong resilience to global economic shocks. Even during the US tariffs, Indian companies successfully diversified their markets and managed to survive. Currently, Indian exporters are increasingly focusing on Latin American markets. To capitalize on these emerging opportunities and provide convenient services to exporters, Exim Bank recently opened a new office in São Paulo, Brazil.
Massive Borrowing Plan for FY27
To meet exporters' credit demand, Exim Bank has significantly expanded its capital raising strategy.
- The bank plans to borrow ₹99,500 crore from the market during FY26-27.
- This figure is significantly higher than the borrowing target of ₹86,000 crore in the previous fiscal year.
According to Bangari, this borrowing plan also includes raising $3.5 billion from overseas markets, for which the detailed framework for bond issuance is yet to be finalized.
Despite the geopolitical turmoil in West Asia, Exim Bank of India's 10% stable-currency credit growth strategy offers a strong outlook. Expansion into new international markets such as Latin America (São Paulo) and a ₹99,500 crore lending plan demonstrate the bank's readiness to provide financial support to Indian exporters amid global challenges.