Mumbai: Indian cash rates ended down on Monday as demand for funds from banks eased in the second week of the reporting fortnight.
The one-day inter-bank cash rate closed at 7.50/60 %, compared with 7.65/75 % at Friday’s close for three-day loans. On Saturday, it ended at 7.65/75 % for 2-day loans in an illiquid market.
“Demand has come down slightly as most banks have covered their positions,” a dealer with a state-run bank said, adding the cash rates could fall to further by the end of the week.
Banks borrowed Rs 78045 crore from the Reserve Bank of India on Monday, lower than Rs 96210 crore on Friday.
Typically, demand is lower in the second half of the reporting fortnight as banks borrow more than their mandated requirement in the first week to avoid a last minute scramble for funds.
Volumes in the one-day call market were at Rs 14542 crore against a total of Rs 16869 crore on Friday, Clearing Corp of India data showed.
In the CBLO market, volumes were at Rs 64415 crore, compared with a total of Rs 61350 crore on Friday.
Weighted average rate in the call money market was at 7.64%, lower than 7.67% at previous close, while that in the CBLO market was 6.61%, compared with 7.26% on Friday.
In the inter-bank repo market, volumes were at Rs 16604 crore versus a total of Rs 14261 crore on Friday, and the weighted average rate was at 7.50 % from 7.51 % at previous close.