Call money rates drop by 10-15 pc

Mumbai, Mar 22 (UNI) Call money rates today dropped drastically to close the day at 10-15 per cent from its previous close of 60-70 per cent.

With the planned three-day strike by the banking unions getting called off, borrowing requirements eased substantially. Liquidity was also boosted due to the central bank's announcement that banks could use funds from the LAF repo window for interbank lending. One bid worth Rs 10 crore was received at the one-day LAF reverse repo window, while the RBI received 58 bids worth Rs 39,550 crore at the one-day LAF repo auction.

At the CBLO segment, 369 bids worth Rs 15,528 crore were traded in the range of 7.24/11.00 per cent.

On the back of comparatively improved money market liquidity, call money rates are likely to trade around the current levels, experts explained.

UNI