ECGC net up 48% at Rs 361 cr in FY’14
Mumbai: The Export Credit Guarantee Corporation of India (ECGC) today reported a 48 per cent rise in profit at Rs 360.7 crore for the fiscal ending March 2014, driven by business growth.
Total income grew to Rs 477 crore during the year from Rs 403 crore a year ago, while recoveries grew 31.66 per cent to Rs 157 crore, he added.
“Growth in post-tax profit during the year gone-by was basically driven by business growth and rupee depreciation,” said N Shankar, Chairman and Managing Director of the state-owned firm that provides export credit insurance facilities to exporters and banks.
The solvency margin stood at a healthy 11.02% as against the minimum solvency ratio of 1.5 as prescribed by insurance regulator Irda, Shankar said.
While gross premium increased to Rs 1,304 crore as against Rs 1,157 crore during previous year, gross claim paid during the year jumped to Rs Rs 898 crore, up from Rs 548 crore during FY13, he said, adding it has made a provision of Rs 3,000 crore for payment of probable claims during 2014-15.
The company board has proposed Rs 88 crore as dividend payout to the government, which is 47 per cent more than it had paid in the previous fiscal, said Shankar.
The authorised capital of the corporation rose to Rs 5,000 crore following the Rs 100 crore capital infusion in July 2013. The corporation has sought Rs 800 crore more capital during the 12th Plan period.