India Call
Ends below SDF rate on low demand for funds from banks
This story was originally published at 18:29 IST on 31 August 2024
Register to read our real-time news.Informist, Saturday, Aug 31, 2024
By Sachi Pandey
MUMBAI – The interbank call money rate ended below the Reserve Bank of India's standing deposit facility rate of 6.25% today due to low demand for funds from banks. As is usually the case on Saturdays, volume in the call money market was low as most banks had met their funding requirements for the weekend on Friday, dealers said.
Today, the two-day call rate ended at 6.00%, against 6.50% for three-day loans on Friday.
On Thursday, the surplus liquidity in the banking system increased slightly to 1.02 trln rupees, from 948.45 bln rupees on Wednesday, RBI data showed. Market participants are counting on the surplus liquidity to remain around current levels due to month-end government spending and lack of scheduled outflows in the current fortnight ending Sep 6.
Despite surplus liquidity, banks parked 40.00 bln rupees at the RBI's 1-trln-rupee seven-day variable rate reverse repo auction.
The following are the other highlights:
* The weighted average call rate was 6.13% against 6.71% on Friday.
* The weighted average rate for triparty repo was 6.17% as compared to 6.60% on Friday.
OUTLOOK
* On Monday, the one-day call money rate may open above the RBI's repo rate of 6.50% due to firm demand from banks despite liquidity surplus.
* During the day, the call rate is seen in a range of 6.20-6.75%, dealers said.
CALL RATE
6.00%--Today's close for two-day loans
5.90%--Today's open for two-day loans
6.50%--Friday's close for three-day loans
End
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
