The Hindu Business Line : Call rates ease to 8-8.5 pc

Call rates eased to 8-8.50 per cent as cash became less scarce. Call rates hit 11 per cent on Saturday and touched a nine-year high of 19 per cent on Friday. Yet, banks today borrowed Rs 17, 945 crore through RBI's twin repo auctions against about Rs 34,000 crore on Friday while placing Rs11,365 crore with the central bank in the second reverse repo (banks place surplus cash with RBI against securities) auction. "The market expects inflows from government spending and special deposit schemes," said a dealer at a private bank.

Advance tax outflows and cash drain of Rs 6,750 crore following the CRR hike did tell on funds supply. In the first one-day reverse-repo auction under LAF, the RBI did not receive any bid and in the first one-day repo auction, the RBI received and accepted 38 bids for Rs 17, 040 crore. In the second one-day reverse-repo auction, the RBI accepted and received 21 bid for Rs 11, 365 crore and in the second one-day repo auction, the RBI received and accepted three bids for Rs 905 crore. The CBLO market saw 353 trades aggregating to Rs 16,313 crore in the 5 per cent-15.25 per cent range.

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