Informist, Tuesday, Sep 20, 2022

By Vishal Sangani

MUMBAI – The inter-bank call money rate today closed below the Reserve Bank of India's repo rate of 5.40% as demand for funds from banks eased towards the end of the session, dealers said.

The call rate for one-day loans ended at 5.15%, unchanged from Monday.

Liquidity in the banking system is currently estimated to be in a surplus of over 2.95 bln rupees as against 229.14 bln rupees on Monday. The surplus liquidity has narrowed to the lowest level since May 2019.

The surplus liquidity has fallen sharply due to outflows of advance tax payment for Jul-Sep and payments for government bonds that were auctioned on Friday.

The liquidity could turn into a deficit in the coming days due to outflows on account of goods and service tax payments. Liquidity was last in deficit in May 2019.

However, inflows of 450.02 bln rupees on account of redemption of the 8.13%, 2022 bond on Wednesday may add to the liquidity in the banking system.

For most part of the day, the call rate remained above the repo rate because of firm demand for funds from banks as surplus liquidity narrowed.

So far, the RBI has drained 774.07 bln rupees through multiple variable rate reverse repo auctions.

Following are the highlights of the day:

* The weighted average call rate was 5.47%, compared with 5.38% on Monday

* TREP (Triparty Repo) weighted average rate was 5.65% as against 5.62% on Monday

* Maturity of standing deposit facility added 563.15 bln rupees to the banking system

OUTLOOK

* On Wednesday, the one-day call money rate may open above the repo rate of 5.40% due to demand for funds from banks

* During the day, the call rate is seen in a range of 5.10-5.60%, dealers said.

CALL RATE

5.15%--Today's close for one-day loans

5.65%--Today's open for one-day loans

5.15%--Monday's close for one-day loans

BENCHMARK MIBOR (in %)

Mumbai Inter-Bank Offered Rates compiled by Financial Benchmarks India:

India Call: Sharply above repo rate; surplus liquidity down further

MUMBAI – The inter-bank call money rate was sharply above the Reserve Bank of India's repo rate of 5.40% today due to firm demand from banks to meet funding requirements as surplus liquidity narrowed, dealers said.

At 0920 IST, the one-day call money rate was at 5.70% as against 5.15% Monday.

Liquidity in the banking system is currently estimated to be in a surplus of over 2.95 bln rupees as against 229.14 bln rupees on Monday. The surplus liquidity narrowed to the lowest level since May 2019.

The surplus liquidity has sharply narrowed due to outflows of advance tax payment for Jul-Sep and payments for government bonds that were auctioned on Friday.

The liquidity could turn into a deficit in the coming days due to outflows on account of goods and service tax payments. Liquidity was last in deficit in May 2019.

However, inflows of 450.02 bln rupees on account of redemption of the 8.13%, 2022 bond on Wednesday may add to the liquidity in the banking system.

The call rate may remain above the repo rate throughout the day because of firm demand for funds from banks as liquidity narrowed.

So far, the RBI has drained out 774.07 bln rupees through multiple variable rate reverse repo auctions.

Following are the other highlights:

* The weighted average call rate was 5.66% against 5.38% on Monday

* The weighted average rate for triparty repo was 5.64%, as compared with 5.62% on Monday

* The reversal of standing deposit facility will add 563.15 bln rupees to the banking system

* The call rate is seen within a range of 5.10-5.75% during the day.  (Vishal Sangani)

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Ashish Shirke

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.

Informist, Tuesday, Sep 20, 2022

By Vishal Sangani

MUMBAI – The inter-bank call money rate today closed below the Reserve Bank of India's repo rate of 5.40% as demand for funds from banks eased towards the end of the session, dealers said.

The call rate for one-day loans ended at 5.15%, unchanged from Monday.

Liquidity in the banking system is currently estimated to be in a surplus of over 2.95 bln rupees as against 229.14 bln rupees on Monday. The surplus liquidity has narrowed to the lowest level since May 2019.

The surplus liquidity has fallen sharply due to outflows of advance tax payment for Jul-Sep and payments for government bonds that were auctioned on Friday.

The liquidity could turn into a deficit in the coming days due to outflows on account of goods and service tax payments. Liquidity was last in deficit in May 2019.

However, inflows of 450.02 bln rupees on account of redemption of the 8.13%, 2022 bond on Wednesday may add to the liquidity in the banking system.

For most part of the day, the call rate remained above the repo rate because of firm demand for funds from banks as surplus liquidity narrowed.

So far, the RBI has drained 774.07 bln rupees through multiple variable rate reverse repo auctions.

Following are the highlights of the day:

* The weighted average call rate was 5.47%, compared with 5.38% on Monday

* TREP (Triparty Repo) weighted average rate was 5.65% as against 5.62% on Monday

* Maturity of standing deposit facility added 563.15 bln rupees to the banking system

OUTLOOK

* On Wednesday, the one-day call money rate may open above the repo rate of 5.40% due to demand for funds from banks

* During the day, the call rate is seen in a range of 5.10-5.60%, dealers said.

CALL RATE

5.15%--Today's close for one-day loans

5.65%--Today's open for one-day loans

5.15%--Monday's close for one-day loans

BENCHMARK MIBOR (in %)

Mumbai Inter-Bank Offered Rates compiled by Financial Benchmarks India:

India Call: Sharply above repo rate; surplus liquidity down further

MUMBAI – The inter-bank call money rate was sharply above the Reserve Bank of India's repo rate of 5.40% today due to firm demand from banks to meet funding requirements as surplus liquidity narrowed, dealers said.

At 0920 IST, the one-day call money rate was at 5.70% as against 5.15% Monday.

Liquidity in the banking system is currently estimated to be in a surplus of over 2.95 bln rupees as against 229.14 bln rupees on Monday. The surplus liquidity narrowed to the lowest level since May 2019.

The surplus liquidity has sharply narrowed due to outflows of advance tax payment for Jul-Sep and payments for government bonds that were auctioned on Friday.

The liquidity could turn into a deficit in the coming days due to outflows on account of goods and service tax payments. Liquidity was last in deficit in May 2019.

However, inflows of 450.02 bln rupees on account of redemption of the 8.13%, 2022 bond on Wednesday may add to the liquidity in the banking system.

The call rate may remain above the repo rate throughout the day because of firm demand for funds from banks as liquidity narrowed.

So far, the RBI has drained out 774.07 bln rupees through multiple variable rate reverse repo auctions.

Following are the other highlights:

* The weighted average call rate was 5.66% against 5.38% on Monday

* The weighted average rate for triparty repo was 5.64%, as compared with 5.62% on Monday

* The reversal of standing deposit facility will add 563.15 bln rupees to the banking system

* The call rate is seen within a range of 5.10-5.75% during the day.  (Vishal Sangani)

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Ashish Shirke

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2022. All rights reserved.