Net ECB inflows rise to $4.4 billion in April-May 2025, shows RBI data

External Commercial Borrowing inflows surge to $4.4 billion in April-May 2025, driven by capital expenditure, despite a slowdown in new ECB registrations

Net inflows of foreign resources via External Commercial Borrowings (ECBs) grew 158 per cent to $4.4 billion in April-May 2025 from $1.7 billion in the year-ago period, according to Reserve Bank of India (RBI) data.

 

However, ECB registrations declined 31.32 per cent to $5.7 billion during April-May 2025 from $8.3 billion in the same period of 2024.

 

In its July monthly bulletin, the RBI said nearly 48 per cent of total ECBs registered during this period were intended for capital expenditure (capex), including on-lending and sub-lending for capex.

 

The number of ECB registrations stood at 122 in April, amounting to $2.91 billion, and 100 in May 2025 for $2.73 billion. For the full financial year 2024–25 (FY25), Indian entities registered 1,379 ECBs, totalling $61.2 billion, RBI data showed. 

 

 

As for the interest rate on the ECBs, the weighted average margin over the alternative reference rate was 1.46 per cent in May, lower than 2.05 per cent in the same month a year ago. This pricing indicator pertains to floating rate loans. For fixed rate loans, the interest rate range was between 0 and 10 per cent in May as against 0-11.67 per cent in May last year.

 

The corporate entities from the manufacturing sector had filed registration for ECBs amounting $1.2 billion in May 2025, up from $497 million in May 2024. Infrastructure firms had filed for intent worth $717 million, down from $1.36 billion a year ago. Service-sector companies filed ECB intents for just $242 million in May, up from $138 million a year ago. Non-banking finance companies filed ECBs intent worth $566 million in May, much lower than $ 1.42 billion in May 2024.