To give a fillip to the future growth the lender bank Export-Import Bank of India, the Union government on September 12 approved a proposal of Rs 700 crore capital infusion. The fund infusion will ensure compliance to the regulatory norms on capital adequacy, cater to the credit needs of productive sectors of economy as well as to withstand impact of stress in the economy, an official statement said in Delhi.
The Rs 700 crore will be provided to the bank during 2013-14. The government said this will also boost the confidence of exporters. The infusion of Rs 700 crore in the equity capital would enable the bank to raise higher amount of borrowings and thereby, support Indian exporters to secure large overseas projects through on-lending.
The statement added that the capital infusion will also help the bank to grow its loans and advances portfolio at 14 per cent which will be below the targeted rate of 19 per cent as per the medium-term business strategy (MTBS) of the bank, it said. The government had already made Budgetary provision for the capital infusion.