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238 Financial Management
Functions
EXIM banks performs the following important functions:
1. Grants direct loans in India and outside for import and export.
2. Refinances loans and suppliers of credit.
3. Rediscounts usance export bills export bills for banks.
4. Provides overseas investment finance.
5. Bulk import finance.
6. Foreign currency preshipment credit.
7. Product equipment finance programme.
8. Business advisory and technical assistance (BATA).
Management
EXIM bank is one of the wholly owned by central government, hence, the entire
management is controlled by the central government.
Working Result
EXIM banks business is exclusively devoted to India’s export and import activities. The
aggregate loans and outstanding reached Rs. 16.16 billion during the first decade of the its
operation. During the year 1990–91, it was sanctioned Rs. 1984 crore and it has increased to
Rs. 12011 crore in 2002–03. The share of EXIM bank in industrial finance is 2.11% in the
year 2002–03.
NATIONAL BANK FOR AGRICULTURAL AND RURAL DEVELOPMENT
Origin
The National Bank for agricultural and rural development was set up on July 12, 1982,
based on the Recommendation of the All India rural credit survey committee under an act
of Parliament as a central or apex institution for financing agricultural and rural sectors. It
has taken over the functions of Agricultural Refinance and Development Corporation
(ARDC) and Agricultural credit department of Reserve Bank of India.
Capital
The National Bank for Agricultural and Rural Development Functioning with the paid up
capital of Rs. 100 crore which is subscribed by Government and Reserve Bank of India in
equal amount. Further capital can be raised from the special borrowings from the Central
Government.
Objectives
The main objectives of National Bank for Agricultural and Rural Development are as follows:
• To provides refinance assistance for agriculture, Small Scale Industries and Village
Industries.