Public Financial Institutions (PFIs) are increasingly opting for bank credit over bond market borrowing due to persistently high yields. Despite RBI rate cuts, bond yields remain elevated, making bank loans, particularly EBLR loans for high-rated entities, a more cost-effective option. This shift is evidenced by a significant year-on-year increase in PFI borrowing from banks. Several state-owned entities have recently cancelled bond issuances, preferring domestic loan markets and overseas borrowing for better pricing.