Industry

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

The Cabinet on Wednesday approved an infusion of ₹6,000 crore of capital in the Exim Bank of India, the government said.

The financing will be done through the issuance of recapitalisation bonds worth ₹6,000 crore by the Centre. “The equity will be infused in two tranches of ₹4,500 crore in FY 2018-19 and ₹1,500 crore in FY 2019-20,” it said in a release. “The Cabinet also approved an increase in the authorised capital of Exim Bank from ₹10,000 crore to ₹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 Centre added.

“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,” the government added.

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Printable version | Nov 25, 2020 3:00:37 AM | https://www.thehindu.com/business/Industry/exim-bank-infusion/article26006845.ece

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