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Informist, Saturday, May 2, 2026

By Durgesh Nandan

MUMBAI – The two-day interbank call money rate Saturday ended above the Reserve Bank of India's standing deposit facility rate of 5.00%, driven up by the final three trades of the day, amounting to INR 3 billion, which took place after 1800 IST. Trading volume was muted because of low participation, which is usually the case in overnight markets Saturday, as most banks had met their requirement for funds Thursday for four-day loans. The Indian financial markets were shut Friday for Maharashtra Day and Labour Day.

The two-day call rate ended Saturday at 5.10%, down from Thursday's close of 5.20% for four-day loans. The weighted average call rate was 4.92%, also down from 5.29% the previous day. The trade volume in the call money market was INR 18.10 billion, sharply down from INR 153.40 billion Thursday. Usually, after 1600 IST, when the tri-party repo market shuts, lenders try to get higher interest during closing hours because there are fewer lenders in the call market, a dealer at a public-sector bank said.

The tri-party repo market rate for two-day loans ended at 4.53%, sharply down from 5.30% at the previous close. The weighted average rate was 4.81%, also down sharply from 5.25% for four-day loans Thursday. The volume in the broader tri-party repo market was INR 183.51 billion, sharply down from INR 4.36 trillion Thursday.

As per the latest figures, the net liquidity absorbed by the Reserve Bank of India, a proxy for surplus liquidity in the banking system, was INR 2.15 trillion Wednesday, down from INR 2.58 trillion Tuesday. The surplus liquidity was INR 5.21 trillion on Apr. 15, but it fell mainly due to outflows for payment of goods and services tax of INR 2.43 trillion, according to government data.

OUTLOOK

Monday, the one-day call money rate is likely to open around 5.15% due to early demand for funds from primary dealerships and some banks, dealers said. Dealers expect the call rate to move between 4.80% and 5.25% during the day, whereas the tri-party repo rate is expected to be in the range of 4.60–5.20% on the back of ample surplus liquidity in the banking system. Inflows of INR 1 trillion–INR 1.5 trillion for payments of salaries and pensions are likely to be transferred in the first week of May, dealers said.

CALL RATE

5.10%--Saturday close for two-day loans

5.12%--Saturday open for two-day loans

5.20%--Thursday close for four-day loans

End

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

Edited by Rajeev Pai

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