Exim Bank of India mulls opening representative office in NepalExport Import (Exim) Bank of India is considering setting up a representative office in Nepal, a senior official of the bank has said.
Export Import (Exim) Bank of India is considering setting up a representative office in Nepal, a senior official of the bank has said.
Yaduvendra Mathur, the bank’s chairman, told The Economic Times newspaper that the bank was considering opening representative offices in South Asian countries, including Nepal.
The bank has so far provided three lines of credits (LOC) worth $1.35 billion to Nepal for financing infrastructure projects such as highways, airports, bridges and irrigation, rural electrification, power transmission and hydropower. The newest was $1 billion LOC announced during Indian Prime Minister Narendra Modi’s visit to Nepal in August 2014 for projects such as hydropower, irrigation and infrastructure development.
Nepal Rastra Bank (NRB) officials said they haven’t yet received official communication from the Exim Bank of India in this regard. “We will delightfully welcome any such requests,” said NRB Spokesperson Trilochan Pangeni. “Our market is open for them and our policy is to support foreign banks’ presence in Nepal.” While opening a representative office here, foreign banks do not have to comply with the NRB regulation and directives on capital structure. “For opening a representative office, they have to forward an application requesting for the same,” said Rajendra Pandit, NRB’s deputy spokesperson. “We will take no time to give them the approval letter once adequate documents are submitted.”
However, a representative office of a foreign bank is not allowed to carry out banking operation, according to NRB officials. “All they can do is forward documents to their host countries and build relation with their clients.”
EXIM Bank of India has overseas presence in Washington DC, London, Singapore, Yangon, Addis Ababa and Johannesburg, and it is shortly opening a representative office in Cote d’Ivoire. “The government’s support through regular capital infusion and interest subvention can further enhance Exim Bank’s developmental impact and put us on a level playing field with our Chinese counterparts. Such support would also help in increasing India’s outreach to other sectors and countries, thereby further enriching our developmental partnerships,” The Economic Times quoted Mathur as saying.