West Asia Crisis Has Limited Impact on Exim Bank Loan Book, Says CEO Harsha Bangari

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.