Net ECB inflows rise to $4.6 billion in Apr-Jun 2025, shows RBI data

RBI data showed net ECB inflows rose to $4.6 billion in April-June 2025 from $2.8 billion a year ago, even as registrations moderated and sectoral trends diverged

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The net inflows of foreign resources via External Commercial Borrowings (ECBs) rose to $4.6 billion in April-June period of the financial year 2025-26 (Q1FY26) from $ 2.8 billion in the same period previous year, the Reserve Bank of India data showed.

 

RBI, in its monthly August bulletin, said the registrations of ECBs moderated in Q1FY26, although inflows continued to outpace outflows, resulting in positive net inflows. The ECB registrations slowed to $9.1 billion in Q1FY26, down from $11.1 billion in Q1FY25.

 

Funds raised through ECBs and initial public offering for capex purposes were slightly lower than in the previous quarter, it added.

 

For the monthly trend, the analysis showed that sequentially, the net inflows in June were merely $0.2 billion, down from $1.2 billion in May.

 

The number of ECB registrations were 113 in June 2025 for $3.5 billion and 100 in May 2025 for $ 2.73 billion, compared to 125 in June 2024 for $2.81 billion, the RBI data showed.

 

The corporate entities from the manufacturing sector had filed registration for ECBs amounting $954 million in June 2025, up from $603 million in June 2024. The firms from the infrastructure sector had filed for intent worth $1.81 billion in June 2025, more than double compared to $808 million in June 2024.

 

The corporations from services filed ECB intents for $19 million in June 2025, down from $37 million in June 2024. The non-banking finance companies filed ECBs intent worth $682 million in June 2025, much lower than $1.31 billion in June 2024.

 

The interest rate on the ECBs, expressed in weighted average margin over alternative reference rate, was 1.70 per cent in June 2025, substantially higher than 1.46 per cent in May 2025 and 1.36 per cent in June 2024. This pricing indicator pertains to the floating rate loans. For fixed rate loans, the interest rate range was between 0-10.50 per cent in June 2025 as against 0-11.00 per cent in June 2024.