large scale image
LCP Image

Back to TSCFM News

Exim Bank planning to enter factoring business

May 13, 2022

Exim Bank planning to enter factoring business
Export-Import Bank of India (Exim Bank) is looking to enter into the factoring business and plans to start operations in the current financial year. Its managing director and CEO Harsha Bangari said on Thursday. 

Under factoring business, an entity (referred to as a factor) acquires the receivables of another entity (referred to as assignor) for an amount. Receivables are the total amount that is owed or yet to be paid by the customers (referred to as the debtors) to the assignor for the use of any goods, services, or facility. 

“We are seeing demand for factoring. The Factoring Bill has been amended and has strengthened. The factoring market is now open for NBFCs and it is now becoming a much-regulated entity. This gives comfort to institutions like us to engage in this business,” Bangari told reporters on Thursday. 

Last year, the Parliament passed the Factoring Regulation (Amendment) Bill, 2021 to bring changes in the legislation aimed at helping the Micro, Small, and Medium Enterprises (MSME) sector. 

Bangari said the bank had received its board approvals to do factoring business.

It has now appointed consultants and factoring specialists to look into various business models, including setting up a separate entity or to be operated out of branch or to be housed in Exim Bank. 

“They are studying it from the point of view of revenue modeling, tax efficiency, and also in terms of our reach,” she said, adding that the bank expects to commence operations of factoring business in the current financial year.

Important Links:

Recommended for you ...

Modi, Mauritius, and Sri Lanka Leaders Unveil Digital Payment Services
Modi, Mauritius, and Sri Lanka Leaders Unveil Digital Payment Services

February 12, 2024

Public Sector Banks Surpassing Private Peers, Investors Reconsidering Choices
Public Sector Banks Surpassing Private Peers, Investors Reconsidering Choices

February 12, 2024

Indian Banks Seek RBI Permission for Global Bond Trading Ahead of Inclusion in Indices
Indian Banks Seek RBI Permission for Global Bond Trading Ahead of Inclusion in Indices

February 12, 2024

Enquire Now
REQUEST A CALLBACK
Chat on WhatsApp