The Hindu Business Line : Call rises on excess cash flow

The inter-bank call rates closed at 0.3-0.4 per cent on Thursday against the previous close of 0.2-0.3 per cent as excess cash flooded the system. "There was surplus cash of about Rs 25,000-30,000 crore in the system. There was an outflow of Rs 14,000 crore from government securities auction but that has not fully sucked out the surplus liquidity from the system," said a dealer with a private bank.

Dealers expect the call rates to inch up to 3-5 per cent levels by next week following an advanced tax outflows due for next week. The RBI received bids from banks worth Rs 1,09,990 crore through the reverse repo window in the two sessions of the Liquidity Adjustment Facility. The central bank did not receive any bids through the repo window. In the first one-day reverse repo auction, the RBI received 45 bids for Rs 64,980 crore while it accepted Rs 1,999 crore.

In the second one-day reverse repo auction, it received 37 bids for Rs 45,010 crore while it accepted Rs 1,001 crore. There were no repo bids in the first and second one-day auctions. The CBLO market saw 170 trades aggregating Rs 14,749.80 crore in the 0.01-0.15 per cent range.

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