Govt to infuse Rs 6,000 cr in form of recap bonds in EXIM Bank

Govt to infuse Rs 6,000 cr in form of recap bonds in EXIM Bank

Agency News

New Delhi, Jan 16 : The Government would infuse Rs 6,000 crore capital in the Export-Import (EXIM) Bank of India in the form of recapitalisation bonds, the Union Cabinet announced on Wednesday.

The Cabinet, met under the chairmanship of Prime Minister Narendra Modi, also decided to increase the authorised capital of the EXIM Bank from Rs 10,000 crore to Rs 20,000 crore, Railway Minister Piyush Goyal told reporters here.

Mr Goyal said the equity would be infused in two tranches of Rs 4,500 crore in financial year 2018-19 and Rs 1,500 crore in 2019-20 respectively. He said the capital infusion will enable the Bank 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, he added.

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. (UNI)