Analysis of External Commercial Borrowings by India Inc over 5 years, with an Interactive Business Intelligence (BI) Dashboard
Over last 5 years to September 2021, for funding capital expenditure, infrastructure creation and M&A activities, Indian corporates & institutions have significantly leveraged on the external commercial borrowings (ECB) and have raised a total of USD 155.5 billion under this route. The borrowings grew by over 82% in a year from FY 18-19 to FY 19-20 due to ECB norms relaxed by RBI in January 2019. They later fell by 31% next year (FY 20-21) owing to COVID19 related disruptions.
Check out this interactive BI dashboard built by Datachamps, the Business Analytics team at Ruby Consulting helps you deep-dive and analyse the ECB by the borrowers & sectors, key purposes of borrowing and lenders over these 5 years.
*To explore the dashboard further, click on the Tabs (Lender 360°, Sector & Borrower 360°, Purpose 360°) and various visual elements therein
In this dashboard, you can click on the visuals and tables, slice-dice and explore how the overall trend has been for a particular borrower, lender, sector, purpose etc.
The key sources tapped for these borrowings were Commercial banks (43% of total), International Capital markets (30% of total) and Foreign Equity partners (about 27% of total). Share of Multilateral Financial Institutions was much smaller.
Sector & Borrower 360o
The financial Services sector was the top sector that had the highest borrowing from external resources (accounting for almost a third of the overall borrowing), followed by Coal & Petroleum products, Electricity & Gas supply and Warehousing & Transportation.
Reliance Industries Limited (RIL), Power Finance Corp (PFC) and Indian Railway Finance Corp (IRFC) were the top borrowers. While RIL borrowed for refinancing earlier debt, PFC borrowed for Onward lending & Working Capital Finance and IRFC for Infrastructure development.
Leveraging on the difference between borrowing costs globally and those in India, the borrowings were primarily for Onward lending and refinancing, followed by Infrastructure development, Working Capital and new capital expenditure projects
(Source: We have prepared this interactive BI Dashboard based on the monthly MIS data released by RBI)