JOIN USTo give a fillip to exports to emerging markets in South America and Africa, India is planning to open branches of public sector banks (PSBs) to extend credit and non-fund based assistance to exporters, the Union Banking and Financial Services Secretary, D K Mittal, said on Tuesday.
“There are about 12 such countries including Ethiopia, Brazil, Chile and Argentina where we would be opening branches of PSBs in the next six to 12 months, subject to regulatory approvals. We do have a roadmap,” he told at an interactive meeting on export credit organised by the Federation of Indian Export Organisations (FIEO).
According to Union Commerce Ministry statistics, exports from India to Africa grew 13.31 per cent and that to South America 8.41 per cent during April-September 2012 on a year-on-year basis.
FIEO President M Rafeeque Ahmed said banks should not be reluctant to extend credit to small exporters, as is the case now, and added that interest rates on foreign currency credit is slightly on the higher side, denting the competitiveness of Indian exporters.