The Hindu Business Line : Call rates ease

Call rates eased as a slew of measures by the Reserve Bank of India, along with the release of the first instalment of farm loan waiver, injected close to Rs 1,45,000 crore into the system. The rates ended substantially lower at 6.75-7 per cent, against the previous close of 9.75-10 per cent.

The amount that the banks borrow from the RBI under the liquidity adjustment facility also came down substantially from the highs witnessed before the liquidity infusion. In the one-day repo auction under the first liquidity adjustment facility (LAF), the RBI received and accepted 1 bid worth Rs 2,500 crore. There were no reverse repo bids.

In the one-day repo auction under the second LAF, the RBI received and accepted 6 bids for Rs 7,900 crore. In the one-day reverse repo auction under the second LAF, the RBI received and accepted 11 bids for Rs 6,270 crore.

The response from banks to the 15-day special repo auction scheme for mutual funds continued to be poor. Only five banks borrowed Rs 2,270 crore under this scheme.In the CBLO market, there were 463 trades amounting to Rs 25,344.90 crore in the rate range of 1-9.51 per cent. –

Our Bureau

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