More Stories

Informist, Saturday, Nov. 1, 2025

By Srijita Bose

MUMBAI – The two-day interbank call money rate ended below the Reserve Bank of India's Standing Deposit Facility after liquidity conditions eased on account of the government's month-end inflows, dealers said. A cut in the cash reserve ratio to 3.25% of net demand and time liabilities of banks, came into effect Saturday, which is also said to infuse INR 700 billion of liquidity into the system, they said. As is usual for Saturdays, volumes in money markets were muted. 

On Saturday, the two-day call rate ended at 5.00%, against a close of 5.10% for three-day loans on Friday. The triparty repo rate ended at 4.50% on Saturday. Total traded volumes in the call money segment were only INR 15.52 billion, against INR 195.20 billion Friday. 

Inflows from the government's routine salary, pension and subsidy payout are expected to infuse around INR 500 billion to INR 700 billion into the banking system. The central bank's net absorption from the banking system--a proxy for liquidity surplus--was INR 84.76 billion Thursday, against INR 145.90 billion Wednesday.

The third tranche of the CRR cut that came into effect Saturday will also lower the cash parked by banks with the RBI, which some dealers said will be used instead to fund credit disbursement needs.

The call rate was above the repo rate in early trade on firm credit disbursement requirements, dealers said. However, with rates in the triparty repo segment falling below the RBI's SDF rate, banks turned to TREPS to meet their funding needs, they said.  

OUTLOOK

On Monday, the one-day call money rate may open near the RBI's repo rate on demand for funds due to credit disbursement requirements, dealers said. However, rates may fall as liquidity in the banking system is set to improve with inflows due to the government's month-end inflows and a cut in cash reserve ratio. 

During the day, the rate is seen in the range of 4.70-5.60%, dealers said. 

CALL RATE

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

5.05%--Saturday's open for two-day loans

5.10--Friday's close for three-day loans

End

Edited by Tanima Banerjee

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.