India Call
Ends below RBI's SDF rate on low demand for funds from banks
This story was originally published at 17:42 IST on 4 January 2025
Register to read our real-time news.Informist, Saturday, Jan. 4, 2025
By Sourabh Kumar
MUMBAI – The interbank call money rate ended below the Reserve Bank of India's standing deposit facility rate of 5.75% on Saturday due to minimal demand for funds from banks. According to dealers, most banks had already met their funding needs for the weekend on Friday, resulting in low market activity.
On Saturday, the two-day call rate ended at 5.75%, against 6.24% for three-day loans on Friday. Trading volume was subdued, with only 60 trades worth INR 10.14 billion being settled. According to data on the RBI's website, the liquidity deficit narrowed on Thursday to INR 674.45 billion from INR 1.05 trillion on Wednesday.
The reversal of a four-day variable rate repo operation conducted by the RBI on Monday drained INR 832.38 billion from the banking system on Friday. Apart from this reversal, liquidity conditions remained largely comfortable. However, going forward, outflows for tax deducted at source and advance tax payments are expected to drain INR 600 bln-INR 700 bln from the banking system, as per market players.
Following are the other highlights:
* The weighted average call rate was 6.12% against 6.54% on Friday.
* The weighted average rate for triparty repo was 6.34% compared to 6.38% on Friday.
OUTLOOK
* On Monday, the one-day call money rate may open above the RBI's repo rate of 6.50% due to demand for funds from banks early in the day to meet their reserve requirements.
* During the day, the call rate is seen in a range of 6.00-6.70%, dealers said.
CALL RATE
5.75%--Saturday's close for two-day loans
6.60%--Saturday's open for two-day loans
6.24%--Friday's close for three-day loans
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
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. 2025. All rights reserved.
To read more please subscribe
Share this Story:
