India Inc’s foreign borrowings slip 81% to $1.02 bn in June: RBI

India Inc’s borrowing from foreign markets slipped over 81 per cent to $1.02 billion in June this year, data from Reserve Bank of India (RBI) showed on Monday.

The domestic companies had raised $5.40 billion from the overseas markets in June 2019.

Of the total fund raised by the Indian companies, $851.81 million was borrowed through the automatic route, while the rest of the funds came in via approval route, as per the RBI data on external commercial borrowings (ECB) for the month of June 2020.

Rural Electrification Corporation Limited (REC Ltd), the government-owned institution to promote rural power projects, was the only company to raise $170 million through the approval route of ECB for the purpose of on-lending.

Among the major borrowers who tapped the automatic route of ECB were: TVS Credit Services raising $100 million for on-lending, and Johnson Matthey India Pvt Ltd – $132.10 million as a working capital loan.

Ibibo Group Pvt Ltd which is into travel and tour business raised $99.04 million as working capital loan, while food products manufacturer Adani Wilmar raised $45 million for modernisation purpose, showed the RBI data.