ECGC pays aggregate dividend of Rs.54 crores to Govt. of India for FY 2011-12

ECGC's 54th Annual General Meeting was held at N. Delhi on 6th July, 2012. Shri N. Shankar, CMD, ECGC mentioned that FY 2011-12 was a landmark year in the history of ECGC during which the Corporation crossed the milestone of Rs.1000 croresof gross premium and also paid highest ever gross claims of Rs.713crores. While the gross premium registered a growth of 13.5%,claim payments grew by14.8%over previous year.A large part of the claims during FY 2011-12 was paid under Export Credit Insurance to Banks owing to defaults of exporters in repayment of post shipment export credit mainly as a result of ongoing global recession and failure of the overseas buyers. Gems &Jewellery, Agro products and Readymade Garments were the sectors which accounted for a major portion of the claims.Shri Shankar mentioned that ECGC endeavoured to provide adequate support to Indian export industry in the difficult time, without increasing premium rates.

After making adequate provision for the pending and anticipated claims and other liabilities, the Corporationearned profit after tax ofRs.225.21 crores during FY 2011-12. Includingthe interim dividend, the Corporation paid out total dividend of Rs.54 croresforFY 2011-12 to Govt. of India. Final dividend cheque was presented by Shri N. Shankar, CMD, ECGC to Hon'ble Shri Anand Sharma, Union Minister for Commerce, Industry & Textiles,Govt.ofIndia on 6th July, 2012.

Govt. of India has made a provision of Rs.100 crores in the budget for FY 2012-13 towards share capital of ECGC.

Source : Equity Bulls

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