Govt to infuse Rs6,000-crore fresh capital into Exim Bank
16 January 2019
The government will infuse Rs6,000 crore in fresh capital into Export-import bank of India (Exim Bank),which will enable it to augment capital adequacy and support Indian exports with enhanced ability.
Exim Bank is the principal export credit agency for India.
The union cabinet chaired by Prime Minister Narendra Modi today approved the recapitalisation of Exim Bank through issuance of Recapitalisation Bonds by the Government of India to the tune of Rs6,000 crore for capital infusion in Export Import Bank of India (Exim Bank), an official release stated.
The equity will be infused in two tranches of Rs4,500 crore in FY 2018-19 and Rs1,500 crore in FY 2019-20, respectively.
The cabinet also approved an increase in the authorised capital of Exim Bank from Rs10,000 crore to Rs20,000 crore. The recapitalisation bonds will be on the lines issued to public sector banks.
The infusion will give an impetus to anticipate new initiatives like supporting Indian textile industries, likely changes in concessional finance scheme (CFS), likelihood of new LoCs in future in view of India's active foreign policy and strategic intent.
Exim Bank of India (Exim Bank) was established in 1982 under an Act of Parliament as the apex financial institution for financing, facilitating and promoting India's international trade. The bank primarily lends for exports from India, including supporting overseas buyers and Indian suppliers for export of developmental and infrastructure projects, equipment, goods and services from India. It is regulated by RBI.