A step to lend exporters more!
Authorised
capital of
EXIM
Bank to grow 100%
Government
approves
the
recapitalization of EXIM Bank of India
The
Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved
the recapitalization of EXIM Bank. The details are, i: Issuance of
Recapitalization Bonds by Government of India to the tune of Rs.6,000 crore for
capital infusion in Export Import Bank of India (Exim Bank).
ii:
The equity will be infused in two tranches of Rs. 4,500 crore in FY 2018-19 and
Rs.1,500 crore in FY 2019-20 respectively. iii: The Cabinet also approved an
increase in the authorized capital of Exim Bank from Rs. 10,000 crore to Rs.
20,000 crore. The recapitalisation bonds will be on the lines issued to Public
Sector Banks.
Major
Impact is being expected that the Exim Bank is the principal export credit
agency for India. The
infusion of capital into Exim Bank will enable it to augment capital adequacy
and support Indian exports with enhanced ability.
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.
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