Exim Bank: Bill to enhance authorised capital introduced in Lok Sabha

A Bill to enhance the authorised capital of Exim Bank from the existing Rs 2,000 crore to Rs 10,000 crore was introduced in the Lok Sabha on Thursday.

Also, it has been proposed to empower the Centre to raise the amount of authorised capital from time to time through executive orders. This would imply that Parliament's nod would not be required if the Centre decides to increase the authorised capital beyond Rs 10,000 crore.

The Bill — Export Import Bank of India (Amendment) Bill, 2011 — was introduced in the Lower House by Mr Namo Narain Meena, Minister of State for Finance.

The proposed amendments would enable Exim Bank, which provides financial assistance to exporters and importers, undertake fresh borrowing, borrow to fund commitments under export line of credits, strengthen the capital base, and enhance single/group borrowers' exposure limits.

The Bill also provides for appointment by the Central Government two whole-time directors in the bank .

krsrivats@thehindu.co.in