India Call
Ends above RBI repo rate on improved demand for funds from banks
This story was originally published at 18:33 IST on 19 October 2024
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By Sachi Pandey
MUMBAI - The interbank call money rate ended above the Reserve Bank of India's repo rate of 6.50% on Saturday due to demand for funds from banks despite surplus liquidity. However, 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.
On Saturday, the two-day call rate ended at 6.55%, against 6.50% for three-day loans on Friday. Only 61 trades worth INR 11.06 billion were settled on Saturday.
On Thursday, surplus liquidity in the banking system was at INR 1.75 trillion, against INR 1.90 trillion on Wednesday, the Reserve bank of India data showed. Reversal of two variable rate reverse repo auctions resulted in an inflow of INR 683.45 billion into the banking system, and INR 249.34 billion of inflows came on account of buyback of gilts by the government.
The following are the other highlights:
* The weighted average call rate was 6.23% against 6.47% on Friday.
* The weighted average rate for triparty repo was 6.39% as compared to 6.29% on Friday.
OUTLOOK
* On Monday, the one-day call money rate may be near the RBI's repo rate of 6.50% due to early demand for funds from banks to meet reserve requirements.
* During the day, the call rate is seen in a range of 6.20-6.75%, dealers said.
CALL RATE
6.55%--Saturday's close for two-day loans
5.80%--Saturday's open for two-day loans
6.50%--Friday's close for three-day loans
End
Edited by Vandana Hingorani
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