For FY14, ECGC India reported higher net profit to Rs361 crore as its gross premium income increased to Rs1,304 crore
Export Credit Guarantee Corporation of India Ltd (ECGC), a government owned export credit insurer, reported a higher full year net profit mainly on increase in its premium income and recoveries.
For the 12 month to end-March, ECGC said its net profit jumped 49% to Rs361 crore from Rs243 crore even as its gross premium income rose 13% to Rs1,303 crore from Rs1,157 crore, a year ago period. Its recoveries during FY14 increased by 31.66% to Rs159 crore.
During FY14, ECGC has covered 7% more aggregate risk value to Rs2.79 lakh crore from Rs2.60 lakh crore a year ago period. It comprises 49% of those under policies issued to exporters and 51% of that pertaining to covers given to banks.
“Though there have been signs of economic recovery in the US and Europe in 2013, political instability and strife in many countries like Libya, Syria, Egypt, Afghanistan, Sudan, Iraq, Turkey and Ukraine heightened risks for exporters and financing banks.
Therefore, the role of ECGC continues to be very important and crucial as exporting without suitable credit insurance is fraught with huge risk,” said N Shankar, chairman and managing director of ECGC in a release.
ECGC said during the FY14, it paid Rs898 crore of claims, significant 64% increase from Rs548 crore a year ago period. During FY14 ECGC paid out 381 claims worth Rs109.29 crore to exporter under policies issued to them and 175 claims worth Rs639.55 crore to financing banks under Export Credit Insurance for Banks (ECIB) Scheme. The major sectors under which it received maximum claims are Gems & Jewellery, ready made garments and textiles, engineering goods, chemicals and agriculture products.
ECGC paid a dividend of Rs88 crore to the Government of India.
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