Funding raising by India Inc via external commercial borrowings declined about 68 per cent in July 2023 to $2.55 billion, compared to $7.88 billion in the preceding month.

This comes against the backdrop of robust demand for credit from Banks. Bank credit grew by ₹4,09,804 crore between June 30, 2023, and July 28, 2023, per RBI data.

On a year-on-year basis, bank credit was up 19.38 per cent as of July 28, 2023.

External Commercial Borrowings are commercial loans raised by eligible resident entities from recognised non-resident entities. These borrowings should conform to parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, etc.

During the reporting month, India Inc raised ECBs totalling $2.07 billion under the approval route and $485 million under the automatic route.

Reliance Jio Infocomm and REC Ltd raised ECBs worth $1.56 billion and $505 million, respectively, under the approval route.

Among the big fund raisers under the automatic route were: Automobility Services and Solutions Private Limited ($72.4 million), Shriram Housing Finance Limited ($50 million), Asahi India Glass Ltd ($36.4 million), and Mitr Sewa Insurance and Fintech Private Limited ($35 million).