To extend $ 500 mn credit to ICICI Bank
Export-Import Bank of United States (Ex-Im Bank) has approached Reserve Bank of India to get powers for recovery under SARFAESI act. However, its application for enablement remains pending with banking regulator.
Fred P. Hochberg, chairman and President of US Ex-Im Bank said it has been in conversation with Reserve Bank of India and the union finance ministry on the issue. He did not elaborate on when the bank had approached RBI nor what was regulators’ response.
Hochberg said bank, the official export credit agency of US government, is seeking level playing field on par with Indian banking entities.
The bank does not have office in India but US government has embassy (establishment) in the country, he told reporters on sidelines of function organised by U.S. India Importers’ Council here today.
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) came into effect for 2002. The act allows banks and financial institutions to auction properties when borrowers fail to repay their loans.
Its portfolio in India has more than doubled to $ 8.5 billion now from $ 4 billion in 2006.
As part of mandate Ex-Im Bank enables U.S. companies to turn export opportunities into real sales that help to maintain and create U.S. jobs.
Meanwhile, Ex-Im Bank has signed pact with ICICI Bank to extend $ 500 million credit line. ICICI Bank will use funds for on-lending to infrastructure project and SMEs.
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The move follows similar sacking of directors on boards of other PSUs including IOC, MRPL, CIL, EIL