The Union Cabinet has approved the recapitalization of EXIM Bank which includes 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). The equity of Rs. 6,000 crore to be infused will be two tranches of Rs. 4,500 crore in FY 2018-19 and Rs.1,500 crore in FY 2019-20 respectively.
The Cabinet in its meeting also approved an increase in the authorized capital of Exim Bank. The authorized capital has now been increased from Rs. 10,000 crore to Rs. 20,000 crore. The recapitalisation bonds will be on the lines issued to Public Sector Banks.
Exim Bank being 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.
@EPC World Media
