ecgc SIGNS MOU WITH ANDHRA BANK FOR BANCASSURANCE

(PRWEB) July 4, 2004 -- Export Credit Guarantee Corporation of India Ltd., (ECGC), and Andhra Bank signed today a Corporate Agency Agreement for marketing of ECGCs export credit insurance products thorough the network of the banks branches. The agreement was signed by Mrs. Geetha Muralidhar, General Manager of ECGC and Mr. A. L. Nageswara Rao, General Manager of Andhra Bank. The agreement was signed in the presence of Shri S. Prabhakaran, ED, ECGC and Mr. T. S. Narayanasami, CMD and Shri R. Balakrishnan, ED, Andhra Bank at Mumbai.

Mr. Prabhakaran, ED,ECGC informed that ECGC has introduced many new products recently for the exporters namely, Consignment exports (stock holding agent) Policy, Global Entity Policy, Buyer Exposure Policy, Multiple Buyer Exposure Policy, Software Projects Policy and IT enabled Service Policy for single buyer and multiple buyer during this current year. Last year, Corporation introduced two products namely, Exports (Specific Buyer) Policy and Exports (Turnover) Policy. ECGC, as export promotional body, keeps in mind the cost factor on the export trade, keeps the premium rates to the lowest level possible.

ECGC has taken steps to make all schemes customer friendly by simplifying the procedures for the benefit of the exporters. Further 'add-on facility is offered to policyholders under its Specific Shipment Policies. In addition, ECGC is looking on the prospects of commencing the domestic credit insurance business.

The total premium stood at Rs.445 Crores during the last financial year ending March 2004 with a growth of 19%. During the same fiscal, ECGC had paid aggregate claims of Rs.450 Crores and recovered a total amount of Rs.63 Crores out of the claims paid.

Speaking on the occasion, Mr. T. S. Narayanasami, CMD of Andhra Bank said that the Bank in its endeavor to enhance the fee based income, has been offering diverse financial services to customers under insurance and mutual fund for a. Andhra Bank with right alignment with the ever changing preferences is keeping pace by devising innovative products and getting tied up with other organisations mainly to provide value added services to the customers with a flavour of convenience.

Mr. R. Balakrishnan, ED, Andhra Bank expressed that the present arrangement is mutually beneficial for both the organisations in the long run. The present arrangement will open new vistas in the bancassurance portfolio of the bank. Moreover, the exporters now do not need to go to ECGC Office but can avail the very facilities from 42 branches of Andhra Bank initially which are with in the reach. He added that the bank is in full understanding of the requirements of the exporters.

Under this arrangement, it is possible for both the institutions to reach the exporters in remote places for not only providing export credit facilities but also protect them against the non-receipt of valuable foreign exchange.

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