The Hindu Business Line : Call rates at 7.50-7.75%

Surplus funds appear to have been drained out of the system with call rates ruling high at 7.50-7.75 per cent. Banks borrowed Rs 23,010 crore from the Reserve Bank of India through the repo window, even as they parked just Rs 2,000 crore through the reverse repo window. "The cash crunch is mainly because of the hike in cash reserve ratio coupled with seasonal factors, which has added to the funds' outflow," said a dealer with a private bank.

Dealers, however, said big ticket IPOs would see strong inflows adding surplus cash to the system which would bring the call rates back to the 6 per cent range. In the first one-day reverse repo auction under Liquidity Adjustment Facility, the RBI received and accepted one bid for Rs 2,000 crore. In the first oneday repo auction, the RBI received and accepted 29 bids for Rs 23,010 crore. The CBLO market saw 525 trades aggregating Rs 30,035.45 crore in the 6.10-7.95 per cent range. - Our Bureau

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