The call money rate ended at a one-month low and also below the Reserve Bank of India’s (RBI) repo rate today because demand for funds ebbed towards the close of trade, dealers said.
“Today, banks covered much of the reserve needs through RBI’s first repo tender. This reduced demand in the call market,” said a dealer at a state-owned bank. The one-day call rate ended at 8.75-9.00 per cent compared with 9.75-10.00 per cent on Monday.
The call rate eased below the 9 per cent mark for first time since September 12.
Rates had risen to over 10 per cent in early trade, with banks stepping up borrowing for meeting their reserve needs during the first week of the Reporting Fortnight.
Collateral borrowing and lending obligation (CBLOs) ended at a weighted average rate of 9.03 per cent compared with 8.97 per cent on Monday.
RBI had injected Rs 62,800 crore through repo tenders today, compared with Rs 59,600 crore on Monday. The central bank had cut CRR by 150 basis points last week, releasing Rs 60,000 crore into the banking system on Saturday.