According to Credence Analytics, which has done an analysis of the data, this was because the proceeds of most of the issues last year were utilised to prepay the high-cost debt.
For the quarter ended September 2003 interest costs were estimated to be down by 15 per cent to Rs 5,976 crore.
Major issuers such as Exim Bank were absent from the market which was the reason for the slump in volumes. Secondary market yields were volatile making the pricing of primary issuances difficult.
Further, the low dollar-rupee forward premiums made borrowings through external commercial borrowings more lucrative as opposed to domestic debt. However, Nabard raised Rs 750 crore at a cost of 5.75 per cent via 5-year bonds.
