The Hindu Business Line : ECGC in talks with two PSU banks for bancassurance

THE Export Credit Guarantee Corporation of India (ECGC) is at an advanced stage of negotiations with Bank of India and Indian Bank to enter into separate bancassurance agreements with them.

The corporation provides a range of credit risk insurance covers to exporters against loss in export of goods and services. ECGC also provides overseas investment insurance to Indian companies investing in joint ventures abroad in the form of equity or loan.

``Banks are the best vehicles to sell our products. Exporters tend to first approach the banks for their export financing requirements. We are now in talks with Bank of India and Indian Bank,'' Mr P.M.A. Hakeem, Chairman and Managing Director, ECGC, told Business Line here.

He said that ECGC already has Bancassurance agreements with five banks to sell the credit insurer's products.

Mr Hakeem also underscored the need for "underwriting support" from the Government to help exporters in the country who win contracts abroad after participating in an international competitive bidding. He held that some of the contracts involve large deferred payments and therefore require commercial risk cover.

"In situations where international re-insurance is not available, Governments usually provide underwriting support. We need to have similar arrangements", he said.

Article E-Mail :: Comment :: Syndication

Stories in this Section
`India largest recipient of remittances in Third World'

Forex reserves jump $1.45 b

FXDirect to go national shortly

ECGC in talks with two PSU banks for bancassurance

JNPT set to float long term listed bonds soon

Bank credit up Rs 4,711 cr