Cabinet clears bill to increase Exim Bank's capital to Rs10,000 crore

The union cabinet today approved the introduction of a bill authorising amendments to the Export-Import Bank Act, which would enable an increase in the authorised capital of the Exim Bank from Rs2,000 crore to Rs10,000 crore.

''The Export Import Bank of India (Amendment) Bill, 2011'' seeks to increase Exim Bank's capital up to the amount that it may deem necessary by notification, from time to time, and also to make provision for appointment of two whole time directors other than the chairman and managing director (CMD).

An expansion of the capital base would enable the bank to take higher export credit exposures and help it to borrow funds to disburse under export line of credits.

Further, the addition of two whole time directors would strengthen the management structure of the bank, which in turn would enable the bank to achieve excellence in its area of operation, compete with international banks and export credit agencies, helping thereby to boost India's international trade and investment.

The Export Import Bank of India was set up as a corporation in 1982, under the Export Import Bank of India Act, 1981, for providing financial assistance to exporters and importers and for functioning as principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country's international trade and connected matters.