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Informist, Wednesday, Jun. 10, 2026

 

By Durgesh Nandan

 

MUMBAI – The one-day interbank call money rate Wednesday ended below the Reserve Bank of India's repo rate of 5.25% as demand eased later in the day amid surplus liquidity in the banking system, dealers said. However, the weighted average call rate remained above the repo rate for more than two weeks during weekdays on initial borrowing at high rates and credit demand, they said.  

 

The one-day call rate ended at 5.20% Wednesday, down from 5.27% Tuesday. The weighted average call rate was 5.28%, almost the same as 5.27% Tuesday. The call money market traded volume was INR 189.68 billion, up from INR 184.86 billion in the previous session. The weighted average call rate remained above the repo rate as demand was higher in early trade, which raised the weighted average for the day, dealers said.

 

"For this week, the (call) rate will not cool down as there are no (major) inflows scheduled and only outflows are there," a dealer at a state-owned bank said. "Due to retail and corporate outflow, banks are borrowing funds from the overnight market."

The one-day tri-party repo rate ended at 5.22%, down from 5.25% Tuesday. The weighted average tri-party rate was at 5.18%, the same as Tuesday. The total volume in the tri-party repo market was INR 5.18 trillion Wednesday, marginally lower than INR 5.20 trillion Tuesday. The tri-party repo rate rose in the latter half of the day. The tri-party repo market's total volume was INR 5.18 trillion Wednesday, slightly lower than INR 5.20 trillion Tuesday.

"Those who need funds borrow during the last hours of the market, and this demand increases the rate," a dealer at another state-owned bank said. "If they will not borrow at TREPs (tri-party repo market), then they will have to borrow at MSF (Marginal Standing Facility rate of 5.50%), so it is better to borrow at a little higher rate (5.20-5.30%) at TREPs (tri-party repo market)."

 

The net liquidity absorbed by the RBI was INR 1.47 trillion Tuesday, up from INR 1.34 trillion Monday, according to the latest data. A few dealers said the rise is likely on the back of a small inflow from the coupon payments for state bonds and a fall in cash balances maintained by banks with the RBI. Banks maintained cash balances of INR 7.73 trillion Tuesday, down from INR 7.77 trillion Monday. Banks have maintained lower than the average requirement of INR 7.91 trillion for the reporting fortnight ending Monday.

 

"The liquidity is expected to be in the same range for this week," a dealer at another state-owned bank said. "It will not fall below 1 lakh crore (INR 1 trillion), until (Jun) 15, when the advance tax outflow is scheduled."  

 

The spread between the weighted average call rate and the weighted average tri-party repo rate was 10 basis points, inching higher than 9 bps at Tuesday's close.

 

OUTLOOK

The one-day interbank call money rate on Thursday is likely to open above the RBI's repo rate of 5.25% on likely demand from primary dealerships and some banks in early trade, dealers said. Dealers expect the call rate to be in the 4.70–5.40% range. The tri-party repo rate is expected to trade in a 4.90–5.30?nd. The weighted average call rate is expected to be around 5.25–5.30%, and the weighted average rate in the tri-party repo market is likely to be around 5.15-5.20%, they said. 

 

CALL RATE

5.20%--Wednesday close for one-day loans

5.35%--Wednesday open for one-day loans

5.27%--Tuesday close for one-day loans

 

BENCHMARK MIBOR (in %)  

Mumbai Interbank Outright Rates compiled by Financial Benchmarks India:

 

TENURE	WEDNESDAY	TUESDAY
Overnight	5.33	5.33
3-day	--	--
14-day	5.88	5.87
1-month	6.13	6.11
3-month	6.69	6.72

 

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India Call: Below RBI's SDF rate on low demand, no major outflows

 

MUMBAI – The one-day interbank call money rate eased during the day and moved below the Reserve Bank of India's Standing Deposit Facility rate of 5.00% as demand for funds from primary dealerships and banks subsided after they had met their requirements, dealers said. Till early afternoon, a significant portion of the day's volumes had already been traded in the overnight market, largely driven by borrowing from primary dealers and some banks in the morning hours, they said. 

 

At 1501 IST, the one-day call rate was 4.75%, sharply lower than 5.35% at the opening and 5.27% on Tuesday. The weighted average call rate was 5.30%, up from 5.27% Tuesday. The weighted average rate remained above the repo rate due to high demand from market participants in the initial market hours, dealers said. The trade volume was INR 171.24 billion, up from INR 156.79 billion at 1430 IST Tuesday. 

 

"Majority of the volumes have already been traded till now, so rates will remain below (the RBI) repo until some demand comes at the last hour from the banks," a dealer at a private sector bank said. "There is no such major demand in the market as TREPs (tri-party repo rate) and call (rate) fell below repo after few hours," the dealer quoted above said. Some banks were borrowing as funding demand has risen due to quarter-end requirements in early June, along with ongoing credit offtake.  

 

At 1505 IST, the one-day tri-party repo was 5.18%, unchanged from opening but down from Tuesday's close of 5.25%. The weighted average rate was 5.18%, unchanged from Tuesday. The volume in the tri-party repo market was INR 4.65 trillion, down from INR 4.55 trillion at 1430 IST Tuesday. 

 

"Some banks also borrow to meet the new ECLGS 5.0 (Emergency Credit Line Guarantee Scheme) requirements in TREPs (tri-party repo market), that's why TREPs rate has opened near (the RBI) repo rate in the past few sessions," a dealer at a state-owned bank said. As of Jun. 1, the government issued credit guarantees for over 26,000 accounts, totalling INR 157 billion under this newly-launched scheme. 

 

Some dealers said rates are expected to rise in the last two weeks of June due to goods and services tax outflows and high demand for funds during the end of the Apr-Jun quarter. Meanwhile, some dealers expect the overnight rate to be at the lower end of the Liquidity Adjustment Facility corridor as surplus liquidity is expected to increase in the near future due to the foreign currency non-resident deposits. Outflows for advance tax payments are likely to happen on Jun. 15. Market participants do not have a fair estimate of the advance tax outflows.   

 

The net liquidity absorbed by the RBI was INR 1.47 trillion Tuesday, up from INR 1.34 trillion Monday, according to the latest release. The surplus liquidity rose on the back of a small inflow from the coupon payments of state bonds and a fall in cash balances maintained by the banks with the RBI. Banks maintained cash balances of INR 7.73 trillion Tuesday, down from INR 7.77 trillion Monday and lower than the average requirement of INR 7.91 trillion for the fortnight ending Monday. (Shumaila Firoz) 

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India Call: Up on early demand; tri-party repo down on comfortable luquidity 

 

MUMBAI – The one-day interbank call money rate Wednesday stayed above the Reserve Bank of India's repo rate of 5.25% due to early demand for funds from primary dealers, dealers said. The tri-party repo rate was down due to comfortable liquidity surplus in the banking system, they said. 

 

At 0930 IST, the one-day call rate was 5.40%, up from 5.27% Tuesday. The weighted average call rate was 5.35%, also up from 5.27% Tuesday. The call money market's turnover was at INR 58.77 billion, sharply higher than INR 5.7 billion at 0935 IST Tuesday. The volume was low Tuesday as it opened around 0930 IST.

The one-day tri-party repo rate at 0930 IST was 5.18%, down from 5.25% Tuesday. The weighted average rate was also 5.18%, similar to Tuesday. At the same time, the volume in the tri-party repo market was INR 1.41 trillion, up from INR 1.29 trillion Tuesday.

 

"Rates in both the markets (call and tri-party) will be range-bound today (Wednesday)," a dealer at a public-sector bank said. "TREPs rate is unlikely to cross repo (rate) during the day as the (surplus) liquidity is on the similar levels."

 

The net liquidity absorbed by the RBI was INR 1.47 trillion Tuesday, up from INR 1.34 trillion Monday, according to the latest release. The absorption indicates surplus liquidity in the banking system. The surplus liquidity rose on the back of a small inflow from the coupon payments of state bonds and 6.64%, 2027 bond totalled to INR 26.28 billion. A slight fall in cash balances to INR 7.73 trillion Tuesday, from INR 7.77 trillion Monday also led to an increase in net liquidity.

 

In the first half of the trading session, the call rate is seen above the repo rate and fall later once the appetite for funds is met, dealers said. During the day, the call rate is seen to be at 4.80-5.40%, dealers said.  (Durgesh Nandan) 

 

End

 

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

 

Edited by Avishek Dutta

 

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