Government Plans to Inoculate 1,500 crore into Exim Bank by Next fiscal
The government has determined to instil 1,500 crore as a capital into the state-owned Export-Import Bank of India (Exim Bank) in the next financial year.
The budget documents presented in Parliament earlier this month reports, "The (Rs 1,500 crore) provision is for Exim Bank as equity support/ subscription to increase the paid up capital of the bank to the level of its authorised capital."
The amount is 200 crore higher than the provision made by the government for the current fiscal. The government has earmarked 1,300 crore capital infusion for the bank. Furthermore, the government has also doubled the authorised capital of the bank from 10,000 crore to 20,000 crore in 2019.
Alongside, the Exim Bank is the principal export credit agency in India and the capital infusion which would give an impetus to new initiatives such as supporting Indian textile industry, likely changes in the concessional finance scheme, likelihood of new letters of credit in future in view of the country's active foreign policy and strategic intent.
Being established in 1982, the bank mostly lends for exports from India, that include supporting overseas buyers and Indian suppliers for export of developmental and infrastructure projects, equipment, goods and services from the nation.