Mumbai, India — May 18, 2026
India’s Export-Import Bank (EXIM Bank) has set an ambitious target of achieving 10% loan book growth in fiscal year 2026-27 despite ongoing geopolitical tensions in the Middle East, signaling confidence in the resilience of Indian exporters and global trade demand.
Harsha Bangari, Managing Director and Chief Executive Officer of EXIM Bank, said the state-owned export finance institution is aiming for stable-currency credit growth in the new fiscal year while continuing to support Indian exporters navigating an uncertain international environment.
The bank had recorded a stronger 12% growth in its loan portfolio during FY2025-26. However, Bangari clarified that nearly five percentage points of that expansion were driven by favorable foreign exchange fluctuations rather than pure underlying credit growth.
According to the bank, nearly 58% of its total loan book is denominated in foreign currencies, while the remaining portion consists of rupee-based lending. The institution expects the share of rupee-denominated loans to rise further as Indian exporters increasingly seek domestic currency financing amid global market volatility.
Limited Immediate Impact From Middle East Crisis
EXIM Bank officials indicated that the ongoing geopolitical instability in the Middle East has had only a limited direct impact on the bank’s operations so far. Most of the institution’s financing is structured as medium- to long-term credit, insulating it from short-term disruptions in global markets.
The bank’s exposure to the Middle East region also remains relatively low, and there have been no significant repayment concerns linked to borrowers in the region at this stage.
However, Bangari acknowledged that a prolonged geopolitical conflict could create broader economic challenges, particularly through disruptions in global supply chains. Such disruptions may put pressure on exporters’ profit margins and potentially slow international project activity.
If uncertainties persist, some exporters may increasingly shift focus toward the domestic market to maintain revenue growth, which could marginally affect incremental credit demand from overseas projects.
Indian Exporters Turn to Latin America for Growth
Amid shifting global trade dynamics, Indian companies are actively diversifying export destinations, with Latin America emerging as a key growth market.
Bangari noted that Indian businesses have demonstrated strong resilience during previous global trade disruptions, including periods of elevated US tariffs, by successfully diversifying markets and supply chains.
To strengthen its presence in emerging overseas markets, EXIM Bank recently opened a new office in São Paulo, Brazil, aimed at supporting Indian exporters and facilitating trade opportunities across Latin America.
The move reflects India’s broader strategy to deepen commercial engagement with fast-growing economies outside traditional export destinations.
EXIM Bank Plans Massive Borrowing Push in FY27
To meet rising funding requirements from exporters and overseas projects, EXIM Bank has significantly increased its borrowing plans for FY2026-27.
The bank intends to raise approximately ₹99,500 crore from the market during the fiscal year, substantially higher than the ₹86,000 crore borrowing target announced for FY2025-26.
The borrowing program will also include plans to mobilize nearly $3.5 billion from international markets. The bank is currently finalizing the structure and timeline for overseas bond issuances.
Industry analysts believe the aggressive capital-raising strategy highlights EXIM Bank’s commitment to maintaining liquidity support for Indian exporters despite mounting geopolitical and economic uncertainties worldwide.
With stable-currency loan growth targets, expansion into Latin America, and a significantly larger borrowing program, EXIM Bank is positioning itself as a critical financial pillar for India’s export sector during a period of global volatility.
