Export Credit Guarantee Corporation of India Ltd (ECGC) has paid seven large value guarantee claims totalling Rs31.10 crore due to the failure of exporters to repay export credit advances to banks.
The corporation reported that it has paid claims of Rs18.38 crore to Bank of Baroda and Union Bank of India in consequence of the default by a large diamond exporter, Rs6.29 crore to Punjab and Sind Bank and Dena Bank due to the default by a large steel exporter and Rs6.43 crore to Indian Bank on account of the default by a software exporter.
During the current fiscal year, the bank business branch has paid a total of Rs64.59 crore against premiums of Rs60.74 crore earned during the same period.
The corporation's metro branch at Bandra also paid a claim of Rs2.95 crore to City Union Bank, Mumbai, on account of the default by a large exporter, the release added.
Source: Financial Times
