ECGC FY14 net profit up by 48.5%

Earns a gross premium of Rs 1,303.73 cr, registering a growth of 12.7% over previous year

Credit risk insurer Export Credit Guarantee Corporation of India (ECGC) saw a 48.5% rise in its net profit to Rs 360.69 crore for FY14 compared to Rs 242.79 crore in FY13.

During FY 2013-14, ECGC earned a gross premium of Rs 1,303.73 crores, registering a growth of 12.7% over the previous year.

N Shankar, Chairman-cum-Managing Director of ECGC said that they mentioned that they were able to meet expectations of its customers as well as its stakeholders during the FY 2013-14, though there have been signs of economic recovery in USA 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.

During FY 2013-14, ECGC paid out 381 claims worth Rs 109.29 crores to exporters under Policies issued to them and 175 claims worth Rs 639.55 crores to financing banks under Export Credit Insurance for Banks (ECIB) scheme.

Average Annual Gross Claims Paid during the past three years is Rs.720 crores. Major sectors under which the claims arose in FY 2013-14 are Gems and Jewellery, readymade garments and textiles, engineering goods, chemicals, and agro products.

The Corporation introduced a new country risk rating system with new features and opened its first overseas office at London in September, 2013.

The overseas office mainly facilities better assessment and management of risks and also recovery of claims paid in European markets. The Corporation on its own will be shortly launching a full fledged Factoring services for exporters.