ECBs rise fivefold to $18.7 billion

NET EXTERNAL COMMERCIAL borrowings (ECBs) rose more than five times to $18.7 billion in FY25, compared with $3.6 billion a year ago, the Reserve Bank of India's (RBI) annual report for 2024-25 showed.

- SAIKAT NEOGI

The appetite for overseas loans was caused by a decline in costs of foreign funds, and lenders, especially non-banking financial companies (NBFCs), increased tapping this market after the central bank revised the capital norms in 2023.

Data from the annual report show that 45.3% of total inflows were used for on-lending/sub-lending and 16.3% for refinancing earlier ECBs. Just 10% of total inflows were utilised for new projects and around 6% for working capital needs.