Call money ends 19-mth low at 1.75-2.25 per cent

Mumbai, Apr 12 (UNI) Call rates continued their southbound journey and fell to their 19-month low of 1.75-2.25 percent and closed at 3.50-3.75 per cent today, traders said.

Amidst inundating liquidity in the banking system, supplies outstripped demand and excess surpluses failed to find any takers.

Consequently, desperate lenders chose to deploy funds at lower rates.

Banks remained flush with funds, evident from the RBI LAF window.

The central bank received 46 bids worth Rs 51,615 crore at the one-day reverse repo window and accepted only Rs. 2,999 crore. No bids were transacted at the one day repo window.

At the CBLO segment, 444 bids of Rs 21,798 crore were transacted in the range of 0.10-3.30 per cent.

Inter bank rates are expected to be soft on the reporting day, given huge cash surpluses in the banking system. Auction outflows are unlikely to dent liquidity.

UNI