×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

Money little changed on liquidity support

Money little changed on liquidity support
Comment E-mail Print Share
First Published: Thu, May 13 2010. 05 48 PM IST
Updated: Thu, May 13 2010. 05 48 PM IST
Mumbai: Indian overnight cash rate stayed near the central bank’s main borrowing rate of 3.75% on Thursday as surplus cash in the system helped banks meet their reserve needs comfortably.
The one-day inter-bank money ended at 3.85%/90%, barely moved from its previous close of 3.85%/95%.
“There is no immediate threat to the liquidity and call money will remain steady,” a trader at a state-run bank said.
“Bond redemptions are adding to the system cash surplus.”
The 7.50% 2010 bonds redeemed on Wednesday released more than Rs1500 croe into the system. The 7.55% bond is due to mature on Friday, resulting in a repayment of more than Rs25000 crore.
Banks parked Rs15320 crore with the RBI at its reverse repo auction on Thursday.
Traders expect a sharp drop in surplus only by mid-June, when companies squeeze their bank balances for paying quarterly taxes.
The weighted average rate in the call money market was 3.89%, while in collateralised borrowing and lending obligation (CBLO), it was 3.59%, according to the Clearing Corp of India (CCIL).
Volume in the call money market was Rs10561 crore and in CBLO it was Rs57183 crore, CCIL data showed.
Comment E-mail Print Share
First Published: Thu, May 13 2010. 05 48 PM IST
More Topics: Markets | Bonds | RBI | Liquidity | Cash surplus |