Coimbatore: The Indian Chamber of Commerce and Industry organised a meeting on "Bankers Role in Promoting Exports" recently in which heads of leading nationalized banks took part.
Coimbatore: The Indian Chamber of Commerce and Industry organised a meeting on "Bankers Role in Promoting Exports" recently in which heads of leading nationalized banks took part.
The sole purpose of the meeting was to discuss on the issues faced by the trade, industry, exporting community and start-ups in their day to day business activities regarding financial assistance, getting payments from overseas customers and documentation.
V Lakshminarayanasamy President of ICC, who welcomed the gathering said that “the export and import community requires financial assistance from the banks, of course, they get assistance from Exim bank which includes direct financial assistance and foreign investments finance”.
“Banks play a pivotal role in foreign trade through the provision of financial instruments necessary for the conduct of business transactions between international buyers and sellers. The private commercial banks also play an essential role in financing the credit requirements of exporters’ viz., pre-shipment, post-shipment credit, and offer deferred payment at a concessional rate of interest” he noted
“However, the exporting community face several problems concerning availing financial assistance, getting payments from overseas customers and proper documentation” he said.
While Dhanapal AGM, SBI said that “all exporters are permitted to avail 3% interest concession. MSMEs under special category avail 2% additional interest subvention making 5%. The industry those who have an initial investment in plant and machinery for about Rupees 10 crores are categorized under the MSME sector”.
According to, the recent announcement of Government of India, the industry which has Rs.200 crores of turnover are categorized under MSME. But no clear cut instructions from the Government. He also pointed out that Reserve Bank of India is trying to extend more and more concession towards GST rebate. He briefly addressed on post-shipment and pre-shipment credit.
K Ramakrishnan Zonal Manager, Indian Bank, while addressing the meeting said that “pre-shipment and post-shipment contain the purchase of export bills, negotiations of export bills, and discrepancies of export bills. He told Indian Bank have advisory service for duty drawback, post-shipment and services for exporters are offered for increasing their business volume to a higher rate.
R Chakravarthy AGM, Canara Bank, in his address, suggested “that exporters may quote in Indian rupees and not in foreign money since hedging risks will be prevented. He briefed about the Gold Card scheme. Through PowerPoint presentation, a senior official from Canara Bank briefed on inland trade, international trade, and what to export, what are all the risks in realisation, the role of banks in export etc.
He said the Office of Director General of Foreign Trade, Customs and RBI are mainly responsible for any exports, and they are the deciding authorities for identifying the items for Exports and the issue of guidelines etc.,
He also said that 19 Regional Offices of RBI are offering their help to the exporters. The role of banks in export documentation is an important one. He elaborately addressed on caution list of RBI, a refund of export proceedings, an extension of time for realisation, FEMA, UCP, LC etc.
Rajvinder Singh Vice President, HDFC Bank, addressed regarding entrepreneurial skill, raw materials and Currency fluctuation.
He suggested that exporters should comply with procedural formalities online. He also discussed the garment exports, particularly from Tiruppur.
Shanmugam AGM, IOB, addressed the meet regarding the export credit, post-shipment, pre-shipment.
He said quality to be maintained, and price should be competitive at the international level. Banks will always help for post-shipment, and finances from banks should be used only for the purpose for which it is allotted and availed. Money should not be misused for any other purpose.
P C Sakthivel, Cluster Business Leader and Rekha, of Yes Bank both addressed the gathering.
They said that banks play an essential role in pre-shipment and post-shipment finance. Interest subvention scheme always helps exporters. Banks also offer bank guarantee for foreign currency.
In the stimulating interactive session that followed participants raised several doubts, and the bank officials clarified them.
The sole purpose of the meeting was to discuss on the issues faced by the trade, industry, exporting community and start-ups in their day to day business activities regarding financial assistance, getting payments from overseas customers and documentation.
V Lakshminarayanasamy President of ICC, who welcomed the gathering said that “the export and import community requires financial assistance from the banks, of course, they get assistance from Exim bank which includes direct financial assistance and foreign investments finance”.
“Banks play a pivotal role in foreign trade through the provision of financial instruments necessary for the conduct of business transactions between international buyers and sellers. The private commercial banks also play an essential role in financing the credit requirements of exporters’ viz., pre-shipment, post-shipment credit, and offer deferred payment at a concessional rate of interest” he noted
“However, the exporting community face several problems concerning availing financial assistance, getting payments from overseas customers and proper documentation” he said.
While Dhanapal AGM, SBI said that “all exporters are permitted to avail 3% interest concession. MSMEs under special category avail 2% additional interest subvention making 5%. The industry those who have an initial investment in plant and machinery for about Rupees 10 crores are categorized under the MSME sector”.
According to, the recent announcement of Government of India, the industry which has Rs.200 crores of turnover are categorized under MSME. But no clear cut instructions from the Government. He also pointed out that Reserve Bank of India is trying to extend more and more concession towards GST rebate. He briefly addressed on post-shipment and pre-shipment credit.
K Ramakrishnan Zonal Manager, Indian Bank, while addressing the meeting said that “pre-shipment and post-shipment contain the purchase of export bills, negotiations of export bills, and discrepancies of export bills. He told Indian Bank have advisory service for duty drawback, post-shipment and services for exporters are offered for increasing their business volume to a higher rate.
R Chakravarthy AGM, Canara Bank, in his address, suggested “that exporters may quote in Indian rupees and not in foreign money since hedging risks will be prevented. He briefed about the Gold Card scheme. Through PowerPoint presentation, a senior official from Canara Bank briefed on inland trade, international trade, and what to export, what are all the risks in realisation, the role of banks in export etc.
He said the Office of Director General of Foreign Trade, Customs and RBI are mainly responsible for any exports, and they are the deciding authorities for identifying the items for Exports and the issue of guidelines etc.,
He also said that 19 Regional Offices of RBI are offering their help to the exporters. The role of banks in export documentation is an important one. He elaborately addressed on caution list of RBI, a refund of export proceedings, an extension of time for realisation, FEMA, UCP, LC etc.
Rajvinder Singh Vice President, HDFC Bank, addressed regarding entrepreneurial skill, raw materials and Currency fluctuation.
He suggested that exporters should comply with procedural formalities online. He also discussed the garment exports, particularly from Tiruppur.
Shanmugam AGM, IOB, addressed the meet regarding the export credit, post-shipment, pre-shipment.
He said quality to be maintained, and price should be competitive at the international level. Banks will always help for post-shipment, and finances from banks should be used only for the purpose for which it is allotted and availed. Money should not be misused for any other purpose.
P C Sakthivel, Cluster Business Leader and Rekha, of Yes Bank both addressed the gathering.
They said that banks play an essential role in pre-shipment and post-shipment finance. Interest subvention scheme always helps exporters. Banks also offer bank guarantee for foreign currency.
In the stimulating interactive session that followed participants raised several doubts, and the bank officials clarified them.