The Union Cabinet on Wednesday decided to approve a capital infusion of Rs 6,000 crore in state-owned Export-Import Bank to expand its business. Railway Minister Piyush Goyal said the Cabinet meeting, chaired by Prime Minister Narendra Modi, decided to increase the bank’s authorised capital from Rs 10,000 crore to Rs 20,000 crore.
The bank is the main export credit agency that finances, facilitates and promotes international trade in the country. “The equity will be infused in two tranches of Rs 4,500 crore in 2018-’19 and Rs 1,500 crore in 2019-20 respectively,” Goyal said.
The minister said recapitalisation bonds would be issued to public sector banks. “It will give impetus to new initiatives such as supporting Indian textile industries, 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,” Goyal added.