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Govt to pour Rs 6,000 cr into Exim Bank in two tranches

PW Bureau

An official release said that the infusion of capital into Exim Bank will enable it to augment capital adequacy and support Indian exports with enhanced ability New Delhi: The Union Cabinet has given its nod to the issuance of recapitalisation bonds by the government to the tune of Rs 6,000 crore in Export Import Bank of India (Exim Bank) and also doubled its authorised capital from Rs 10,000 crore to Rs 20,000 crore. 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. 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.”
An official release said that 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), the likelihood of new LoCs in future in view of India’s active foreign policy and strategic intent,” it added. Exim Bank of India (Exim Bank) was established in 1982 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 the Reserve Bank of India.