ECGC declares dividend of Rs 72.50 core, says Commerce Ministry

New Delhi: Government-owned Export Credit Guarantee Corporation (ECGC) has declared a dividend of Rs 72.5 crore at the rate of Rs 5 per share for 2016-17, the commerce ministry saidon Thursday.

It also said that the corporation has posted profit before tax of Rs 407 crore in FY2016-17, an increase of 5 per cent over previous year.

Further, the ministry said that despite ECGC reducing the premium rates to bring down the transaction costs of the exporters by an average 17 per cent, the company recorded only a marginal decline in premium of less than 4 per cent.

"ECGC has declared a dividend of Rs 72.5 crore at the rate of Rs 5 per share," it said in a statement.

ECGC's support of total exports at Rs 2.65 lakh crore was around 15 per cent of total merchandise exports in 2016-17.

The objective of ECGC is to promote exports by providing credit risk insurance and related services for exports.