The government has approved the recapitalization of EXIM Bank, the principal export credit agency for India. In a recent cabinet meet, the proposal of issuing Recapitalization Bonds by Government of India to the tune of Rs.6,000 crore for capital infusion in Export Import Bank of India (Exim Bank) was given the go ahead.
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 respectively.The Cabinet also approved an increase in the authorized 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 infusion of capital into Exim Bank will enable it to augment capital adequacy and support Indian exports with enhanced ability.