The April-June quarter is typically considered a dull period for fundraising due to slower economic activity and as most companies are busy getting fresh board approvals and prepare for the new financial year.This year, however, fundraising through corporate bonds issued on a private placement basis hit an all-time high of over Rs 3 lakh crore in the April-June period, data compiled by National Securities Depository Ltd. and NDTV Profit showed. This is because companies have frontloaded their borrowings.This has come due to a fall in yields after Reserve Bank of India began its interest rate cut cycle and flushed the banking system with ample liquidity, three people told NDTV Profit."A relatively faster transmission of policy rate cuts in debt market as against bank lending rates has prompted large issuers to tap bond markets at lower rates," Anil Gupta, vice president of financial sector ratings at ICRA, said.Since the start of February, yield on the 10-year bonds of National Bank and Agriculture and Rural Development—considered a benchmark in the corporate debt market—fell by 25 basis points to 7.05%. Yield on the 10-year benchmark government bond fell by 49 bps to 6.32%.In comparison, weighted average lending rates of scheduled commercial banks has fallen by 10 bps since February to 9.70% in April, according to recent RBI data. Rate on the one-year marginal cost of lending rate declined by 10 bps to 8.95% in May.Stressed Assets Of Microfinance Sector Surge as Credit Growth Slows"RBI’s frontloading of rate cuts and CRR reduction, coupled with abundant system liquidity from April has set the tone," Venkatakrishnan Srinivasan, founder and managing partner at Rockfort Fincap LLP, said.Since the beginning of the rate easing cycle in February, RBI has cut repo rates by 100 bps, with a jumbo 50 bps reduction earlier this month. It also reduced cash reserve ratio to 3% from 4% in a staggered manner, which will infuse about Rs 2.5 lakh crore worth of liquidity in the banking system by December.Apart from the usual AAA rated public sector companies that dominate fundraising in the debt market, issuances from Real Estate Investment Trusts, Infrastructure Investment Trust and several bond issuances by municipal corporations also drove total fundraising to over Rs 3 lakh crore in the June quarter. The last time fundraising through corporate bonds in the June quarter witnessed so much action was in fiscal 2024, when total fundraising surpassed Rs 2.7 lakh crore as erstwhile Housing Development Finance Corporation Limited preponed it's annual bond offerings in the run up to its merger with HDFC Bank.Last week, NDTV Profit reported that despite sharp rate cuts by the RBI and ample liquidity injection, several companies—especially those rated AA+ and below—are increasingly turning to overseas markets for their funding needs.While top rated AAA borrowers enjoy strong demand and fine pricing at home, AA rated bonds are still being priced at a premium, making the external commercial borrowings and dollar bonds more attractive for them.Gold's Glitter Fades For Indian Households As High Prices Dull Jewellery DemandIn the financial year ended March, Indian companies raised $61.13 billion through ECBs, with NBFCs and financial institutions leading the charge. In April, funds raised through ECBs were $2.91 billion. On a fully hedged basis, overseas borrowing for an AA rated paper is being priced at around 8%, one of the merchant banker quoted above said.This pricing advantage, coupled with the ability to raise a larger deal size that also opens up new investor pools, is driving more NBFCs to tap overseas markets.Want Every Branch To Be Financial Super Store, Says SBI Chairman CS Setty | Profit Exclusive. Read more on Economy & Finance by NDTV Profit.