The government Wednesday decided to recapitalise state-owned Exim Bank to the tune of Rs 6,000 crore and double its authorised capital to Rs 20,000 crore.
The government Wednesday decided to recapitalise state-owned Exim Bank to the tune of Rs 6,000 crore and double its authorised capital to Rs 20,000 crore.
The equity will be infused in two tranches -- Rs 4,500 crore in 2018-19 and Rs 1,500 crore in 2019-20, Railway Minister Piyush Goyal told reporters after the Cabinet meeting here.
"Cabinet approves recapitalisation of Export-Import Bank of India (Exim Bank) to the tune of Rs 6,000 crore and increase its authorised capital from Rs 10,000 crore to Rs 20,000 crore," he said.
Established by the Government of India, Exim Bank commenced operations as a purveyor of export credit, mirroring global export credit agencies.
It serves as a growth engine for industries and small and medium enterprises through a wide range of products and services.
This includes import of technology and export product development, export production, export marketing, pre-shipment and post-shipment and overseas investment.
Earlier, DNA Money reported that Economic Offences Wing of Central Bureau of Investigation (CBI) had registered a case of cheating and criminal conspiracy against a Grant Road-based company for allegedly causing wrongful loss of Rs 80 crore to Export Import Bank of India (Exim Bank) at Cuffe Parade.
The case was registered against M/s Parekh Aluminex Ltd (PAL), Nana Chowk, Grant Road, engaged in the production and sale of aluminium foil containers/rolls etc. The company, at one point in time, was the largest manufacturer and exporter in its segment and had a significant share in the niche market of the UK.
According to the CBI, the bank had alleged that between 2004 and 2015, PAL and other unknown persons entered into a criminal conspiracy with an intent to cheat the Exim Bank in availing foreign currency Pre-cum-Post Shipment Credit (PCPS) and Working Capital Term Loan (WCTL) limit. PAL got sanctioned and released foreign currency PCPS of $2 million in August 2004 and got it renewed time to time with the latest renewal in May 2011 for Rs 13 crore.
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 "Modi government to infuse Rs 6,000 crore in Exim Bank over two years")
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