Govt. to infuse Rs 6,000 crore in Exim Bank

Why in news?

• The Cabinet approved an infusion of Rs 6,000 crore of capital in the Exim Bank of India.
• The financing will be done through the issuance of recapitalisation bonds worth Rs 6,000 crore by the Centre.
• 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.
• The Cabinet also approved an increase in the authorised 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.
• The capital infusion would enable the bank to augment its capital adequacy and support Indian exports.
• The infusion will give an impetus to anticipate new initiatives like supporting Indian textile industries, likely changes in Concessional Finance Scheme (CFS), in view of India’s active foreign policy and strategic intent.

EXIM bank

• Export–Import Bank of Indiais the premier export finance institution in India, established in 1982 under Export-Import Bank of India Act 1981.
• Since its inception, Exim Bank of India has been both a catalyst and a key player in the promotion of cross border trade and investment.
• Commencing operations as a purveyor of export credit, like other export credit agencies in the world, Exim Bank India has evolved into an institution that plays a major role in partnering Indian industries, particularly the Small and Medium Enterprises, in their globalisation efforts, through a wide range of products and services offered at all stages starting from import of technology and export product development to export production, export marketing, pre-shipment and post-shipment and overseas investment.

(Industry, Economy)(Source:- THE HINDU)