New Delhi (IANS): The Union Cabinet on Wednesday approved capital infusion of Rs 6,000 crore in Export-Import Bank of India (EXIM Bank) through recapitalisation bonds to boost the bank's capacity in export financing.
"The EXIM Bank will be infused with Rs 4,500 crore before March and Rs 1,500 crore in the next fiscal," Union Minister Piyush Goyal told reporters after the Cabinet meeting chaired by Prime Minister Narendra Modi.
Goyal said the Cabinet has further approved raising the authorised share capital of the bank from Rs 10,000 crore to Rs 20,000 crore.
"The capital infusion will improve the bank's capacity to support the exporters and importers. This will boost export financing," he said.
The minister said India's textile industry has huge export potential and that the government with this step will enable EXIM Bank to better support the textile exporters with adequate lines of credit.
Goyal also said the strengthening of EXIM Bank will help in achieving the strategic interests of the country.