India Inc's External Commercial Borrowing Dropped By 45% In January

In January 2019, India Inc's external commercial borrowing fell by 45 percent to $2.42 billion when compared to the same month a year ago, according to data released by the Reserve Bank of India (RBI). In January 2018, firms in India had raised $5.40 billion from sources abroad.

$2.26 billion of the total borrowings was raised from the automatic route of ECBs while the rest of $150 million was taken through the approval route.

During the month, both in 2019 as well as 2018, money was not raised through rupee-denominated bonds (RDBs).

Major borrowers, that chose the approval route, included Indian Oil Corporation Limited ($ 900 million), Bharat Petroleum Corp ($ 500 million) and Hindustan Petroleum Corp ($ 200 million) and raised the money for their working capital requirement.

Power Grid Corporation raised $228.55 million for power project and Reliance Home Finance raised $35.50 million for lending.

Power Finance Corp was the only firm to raise $150 million for sub-lending purposes.

Inputs from PTI