Call money crosses 8 pc, closes high at 8.10 pc

Mumbai,Dec 14 (UNI) Interbank call money rates today for the first time this month crossed 8 per cent mark, closing at 8.10 per cent against the previous close of 7.75 per cent due to shortage of ready funds at the domestic market, traders said.

Inter-banks rates continued to rule high above 8.00 per cent amidst dearth of supplies. They had closed the previous session at 7.80-7.90 per cent.

Scramble for funds is well evident from the increasing repo bids and declining reverse repo bids at the RBI LAF. At the LAF window, 21 bids for Rs. 6,385 crore were accepted at the repo auction while 11 bids worth Rs. 5,075 crore were accepted at the 1-day reverse repo auction yesterday.

With the onset of advance tax payments (estimated at around Rs 30,000 crore) and then the higher CRR requirements, liquidity is expected to remain tight. Consequently, rates are likely to trade firm, dealers added.

UNI AR OBB AG1904