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Informist, Friday, Aug. 29, 2025

 

By Kabir Sharma

 

MUMBAI – The weighted average call rate ended sharply below the Reserve Bank of India's Standing Deposit Facility rate on Saturday amid muted demand and the availability of ample liquidity in the banking system, dealers said. The volume in the money market was even lower than usual as traders had difficulty commuting because of protests going on in Southern Mumbai, they said. 

 

The two-day call money rate settled at 5.00%, down from 5.45% for three-day loans Friday. The weighted average rate ended at 4.97%, down from 5.50% Friday. The rates in the triparty repo market closed at 5.27%, with the weighted average rate at 5.17%, down from 5.40% Friday. 

 

Rates also remained low due to inflows from the government's salary and pension payouts. Traders have pegged the total month-end inflows into the banking system at around INR 1.50 trillion. 

 

As per the latest data from the RBI, the central bank net absorbed INR 2.37 trillion from the banking system Thursday, higher than INR 1.83 trillion Wednesday. The liquidity surplus rose above 1% of banks' net demand and time liabilities, which was at INR 2.35 trillion as per the latest data. 

 

OUTLOOK

* On Monday, the one-day call money rate may open near the RBI's repo rate of 5.50% on demand for funds from banks. The RBI will hold a three-day variable rate reverse repo auction for INR 500 billion at 0930-1000 IST.

* During the day, the call rate is seen in a range of 4.90-5.70%, dealers said.

 

CALL RATE

5.00%--Saturday's close for two-day loans

5.00%--Saturday's open for two-day loans

5.45%--Friday's close for four-day loans

 

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Deepshikha Bhardwaj 

 

 

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