ECGC profit up on higher recoveries

Export Credit Guarantee Corporation of India (ECGC) paid out claims aggregating Rs 548 crore to Indian exporters and banks during FY13, against Rs 713 crore in the previous year. ECGC increased its provisioning for pending and probable claims to Rs 508 crore for FY 13 from Rs 230 crore last year. Major sectors under which the claims pay out was made include readymade garments and textiles, gems and jewellery, engineering goods, agro products, chemicals, marine products and leather. ECGC paid out 193 claims worth Rs 397 crore to banks under export credit insurance to banks. ECGC earned net profit of Rs 243 crore in the financial year ended March 31 compared with Rs 225 crore during the previous year. The profitability was boosted by higher investment income, recoveries, and reduction in expenses. The board has approved to increase its authorised capital to Rs 5,000 crore (from Rs 1,000 crore now), said N. Shankar, Chairman and Managing Director. “We have got approval to open our first overseas representative office at London which will help ECGC in better assessment and management of risks in European markets,” said Shankar.