The government-owned Export Credit Guarantee Corporation of India (ECGC) recorded creditable financial results in FY14 despite a global slowdown.
The government-owned Export Credit Guarantee Corporation of India (ECGC) reported profit after tax of Rs 360.69 crore for the year 2013-14, a growth of 48.5 per cent over the corresponding period in 2012-13.
During the year, risk value covered by ECGC rose 7 per cent to 2,79,354 crore, gross premium covered rose 12.7 per cent to Rs 1,304 crore and gross claims paid was up 64 per cent at Rs 898 crore. The Board of directors has proposed a dividend of Rs 88 crore (Rs 60 crore) to be paid to the government for 2013-14.
Addressing media, N. Shankar, CMD, ECGC said, the corporation will offer direct factoring facility for micro, small and medium enterprises (MSMEs) in 2014-15 to ``help meet their working capital requirements.’’
He said ECGC, with a network of 62 branches, will also open bank branches in Ahmedabad, Kollam and one in Tambaram, Chennai this year.
In July 2013, the corporation’s authorised capital was increased from Rs 1,000 crore to Rs 5,000 crore. ‘’The increase will give us head-room for growth,’’ he said.
‘’Though there have been signs of economic recovery in USA and Europe in 2013, political instability and strife in many countries like Libya, Syria, Egypt and other heightened risks for exporters and financing banks. Therefore the role of ECGC, the national export credit insurer of India, continues to be very important and crucial as exporting without suitable credit insurance is fraught with huge risks,’’ he said.
Mr. Shankar said ECGC had developed a country risk rating system. ``We have a profile on 237 countries and they are classified into seven groups from `least risky’ to `riskiest.’ The ratings are determined by issues like political factors, economic indicators with weightage also given to the country’s relationship with India.’’
During FY14, ECGC paid out 381 claims worth Rs 109.29 crore to exporters under policies issued to them and 175 claims worth Rs 639.55 crore to financing banks under Export Credit Insurance for Banks (ECIB) scheme.
ECGC also manages the National Export Insurance Account (NEIA) Trust on behalf of the government and under this, 16 projects of value of Rs 10,132.1 crore were covered and the projects are being executed by Indian exporters in countries like Sri Lanka, Myanmar, Iraq, Algeria, Zambia and Tanzania.