"We intend to mop up between Rs 5,000 to Rs 6,000 crore from the market before March 31, 2001. The first bond issue will hit the market sometime in November-December this year," chairman and managing director of IDBI, G P Gupta said here.

Gupta said, Rs 3,000 crore will be raised through public issue and rest would be mopped up through private placement.

The second public issue will come out some time in March next year, he said adding that interest rates for the bonds would be based on current yields on the government paper having corresponding maturity period. On the general trend of the interest rates in the markets, IDBI Chief said: "The rates will not harden. They will more or less remain the same. However, we need to watch international crude prices.

If West Asian crisis stablises or cools down, oil prices will come down, so also pressure on rupee and interest rates.

Asked about the impact of economic slowdown on credit disbursal, he said slowdown in the first half will give way to growth in the second half and economy "will grow at 6.5 to 7 per cent,".

"The industrial slowdown is a temporary phase and themarkets will recover... fundamentals of the economy are strong" he said.

On the slump in the stock markets, Gupta said that the FIIs were exiting now on fear of a rupee slide and it is not a reflection on the fundamentals of the economy.