Call money ends steeply low at 7.00-9.00 pc

Mumbai, Mar 28 (UNI) Interbank call rates dropped drastically to end at 7.00-9.00 per cent from their intra-day high of 25-30 per cent as demand for funds subsided.

Rates had closed at 13.00-15.00 per cent on Monday, dealers said.

Tightness in liquidity abated in the later part of the day, possibly due to government spendings and RBI's intervention in the Forex market. Consequently as demand pressure eased and supplies improved, call rates dropped substantially.

At the LAF auction, RBI received 11 bids worth Rs 3,215 crore at the 1-day reverse repo window but only Rs 1,000 crore was accepted while 36 bids worth Rs 27,395 crore were accepted at the 1-day repo window.

At the CBLO segment, 397 bids of Rs 18,064 crore were transacted in the range of 2.00-20.00 per cent.

Call rates are expected to move with a firm bias as tight liquidity conditions continue to prevail in the banking system, a trader added.

UNI