India’s Exim Bank seeks to open rep office in Dhaka

The Export Import (Exim) Bank of India has sought to open its representative office in Bangladesh and the prayer is now under the scrutiny of the Bangladesh Bank (BB).
One of main objectives behind opening the office, sources said, is to facilitate the implementation of projects receiving funds under the Indian Line of Credit (LoC).
Recently the bank sought permission from the government of Bangladesh to open a representative office in Dhaka. The central bank is now scrutinising the proposal, they added.
The Exim bank presently has representative offices in Washington, London, Dubai, Addis Ababa, Johannesburg, Yangon, Dakar and Singapore.  
At present 12 foreign banks have representative offices in Bangladesh.
Sources said the Exim, the fully sate-owned bank operates a comprehensive range of financing, advisory and support programmes of India's trade and investment relations with partner countries, has already nominated a manager as resident representative for its proposed Dhaka office.
"Exim Bank's proposed office in Dhaka will play a catalytic role in further enhancing the economic and trade relations with Bangladesh as also facilitate implementation of ongoing/upcoming projects financed under LoCs valued at US$2.4 billion," deputy managing director of the bank David Rasquinha wrote in a letter to Bangladesh High Commissioner in New Delhi.
Established in 1982, the bank is principal financial institution in India for coordinating working of institutions engaged in financing exports and imports. Its financing programmes include export credits, and export-capability creation.
A senior central bank official told the FE that the application of Exim Bank is under scrutiny and that it had been asked to submit requisite papers for approval.
"Yes, we have received an application from the bank authority but yet to take any decision," the official said, seeking anonymity.
Another central bank official said usually the representative offices of foreign banks work for business development and carrying out research work but they are not entitled to do any commercial banking.
He said the representative offices also work for business promotion of their banks with local banks. The works include opening LCs (letters of credit), and providing LC advice alongside promoting international trade and investment relations.
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