According to data from Reserve Bank of India, Indian companies raised $1.43 billion through external commercial borrowings in October, which was the lowest in six months. It came down from $2.69 billion in September.
Last month, Indian companies raised $930.50 million through the automatic route and $499.42 million through the approval route.
The RBI said, Indian Oil Corp Ltd was the largest borrower that raised $300.00 million through the automatic route, followed by Rohan Corp India Pvt Ltd and Dupont Specialty Products India Pvt Ltd with $100.00 million and $58.94 million respectively.
The only two issuers through the approval route were REC Ltd and Export-Import Bank of India that raised $399.42 million and $100 million, respectively.
The information was part of a monthly release on external commercial borrowing data that was detailed by the central bank on Monday.
On July 6, 2022 the central bank had announced a slew of measures, including changes to external commercial borrowing limits, stem the decline in the rupee amid foreign fund outflows from Indian financial markets and enhance foreign exchange inflows.
The RBI had increased the limit for borrowing under the external commercial borrowing route, while under the automatic route, that doesn’t need RBI’s nod to raise funds, the limit was increased to $1.5 billion per financial year from the earlier $750 million.
The all-in cost ceiling, which includes costs other than interest rate on borrowing, was also raised by 100 basis points. This, however, depends on the borrower being of investment grade rating. These relaxed norms will be in effect till December 31.
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