» Business » ECB rises four-fold to $1.9 bn in June

ECB rises four-fold to $1.9 bn in June

Source: PTI
July 30, 2009 17:41 IST
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LoansIndicating some recovery in the global scenario, overseas borrowings by India Inc have increased phenomenally by nearly four-fold to $1.9 billion in June.

The total overseas loans raised by 48 companies through external commercial borrowings moved up from $494 million in May to $1.9 billion in June, according to the ECB data, released by the RBI on Thursday.

Of the total overseas borrowings, $573 million were raised through automatic route and $1.3 billion was mopped up through approval route.

"This is in consistent with the recovery in the global scenario," rating agency Crisil Principal economist D K Joshi said.

The ECB data for June showed that most of the companies raised overseas funds for import of capital goods, modernisation, projects, among other things.

HDFC Bank economist Jyotinder Kaur said it is largely due to pull and push factor in favour of India.

"While the push seems to be supported by stabilisation in international financial markets, the robustness in Indian economy is creating the pull factor," she said.

Out of $1.9 billion, the National Aviation Company of India Ltd borrowed $830 million through approval route for import of capital goods, while DLF mopped up $300 million during the month.

Besides them, Pepsico India Holding Private Limited raised $130 million in June for import of capital goods and Suzuki

Powertrain India Limited mopped up $128 million for modernisation.

During the month, Air India Charters Limited raised $74 million for import of capital goods.

Moreover, United Phosphorus and Rolta India borrowed $50 million each in June.

In May, overseas borrowings by India Inc increased by 65 per cent to $494 million over the month of April.

The total overseas loans raised by 35 companies through external commercial borrowings and foreign currency convertible bonds moved up from $298 million in April to $494 million in May.

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